Absolute return vs multi-asset funds

STRATEGY

James Baxter of Tideway Investment Partners explains why it has been all about timing for absolute return investors in recent years.

Absolute return funds have recently come in for a good deal of criticism from investment advisers and journalists. With the decline in popularity of with-profits, the bulk of investment money seeking lower risk, lower volatility returns has gone into mixed-asset funds rather than what might have been seen as the more obvious choice of absolute return.  For most advisers and money managers who promote multi-asset funds, asset allocation – or spreading investments over a range of investments – typically equities, bonds, property and alternatives, is seen as the key to lower risk returns...