Cyclicals proficiency

With a plethora of new product launches, the Absolute Return sector is a ripe hunting ground for investors seeking to cash in on the cyclical popularity of the peer group

The IMA Absolute Return sector has a lot to shout about these days. For starters, the performance has been pretty good during the recent downturn. Fund flows have also been strong as investors’ penchant for the volatility-combating absolute return fund is on the rise. New product launches have been plentiful, as product providers hope to cash in on the sector’s cyclical popularity. While these developments are indeed positive, the fact remains absolute return funds have a limited appeal. They are suitable only for those investors who can comprehend their rather complex inner workings. Th...