Are low volatility funds worth paying for?

Argonaut CEO, Barry Norris, argues many funds within the IA Targeted Absolute Return sector are failing to deliver on both their risk/return and diversification aims.

The argument for investing in absolute return should be relatively simple: a consistent delivery of attractive returns, combined with a risk profile offering diversification from traditional long-only funds. However, much of the investor attention surrounding absolute return strategies overly focuses on those funds displaying low volatility characteristics, which have no portfolio diversification benefits on their own. Which absolute returns protected investors during a turbulent August? There are also concerns the emphasis on low volatility in isolation often leads to too many fun...