IMA names Targeted Absolute Return underperformers

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The Investment Management Association has started to highlight funds in the Targeted Absolute Return sector that fail to deliver rolling 12-month positive returns.

The move is part of the IMA’s efforts to tighten of requirements of the sector, following the rebranding of the sector from its previous Absolute Return name and criticism that some members do not deliver returns in all market conditions.

The IMA now publishes data showing how many times funds in the sector have failed to deliver positive returns after charges for rolling 12-month periods. This will be updated monthly.

May’s table shows John White’s £141.6m GLG Alpha Select Alternative and Peter Allwright and Stuart Frost’s £10m RWC Cautious Absolute Rate & Currency funds have the most instances of negative rolling 12 month return periods, with 21 each out of 24.

Nick Osborne and Nigel Ridge’s £384m BlackRock UK Absolute Alpha funds follows, with 19 periods of negative returns. The asset manager recently gave the fund a wider mandate, including greater use of leverage, in a bid to improve performance.

Speaking at the time of the sector’s renaming, IMA chief executive Daniel Godfrey said: “We will continue to keep a close eye on the sector to see whether sub-groups could be created to further refine the value of our sector data for users.

“We will also keep a close eye on performance and, should it become necessary, set performance criteria, which could lead to a fund’s expulsion from the sector on performance grounds. The monitoring we have announced today will be an important tool in this regard.”

IMA Targeted Absolute Return sector monitoring information

IMA Targeted Absolute Return sector monitoring information

Source: IMA, Morningstar

Fund Name Number of available rolling 12 month periods in the last 36 months (max 24 data points) Of which – number of negative rolling 12 month return periods
Absolute Insight Credit B1p GBP 24 8
Absolute Insight Currency S GBP 24 2
Absolute Insight Emerg Mkt Debt S GBP 24 0
Absolute Insight Fp 24 2
Absolute Insight UK Eq Mkt Netrl S£ 24 0
Barclays Capital Radar D GBP 24 16
BlackRock Absolute Return Bond P Acc 9 0
BlackRock European Absolute Alpha D 24 0
BlackRock UK Absolute Alpha P 24 19
BNY Mellon Absolute Return Eq GBP R Acc 17 2
Cazenove Absolute UK Dynamic P1 24 2
Cazenove UK Absolute Target P1 GBP 24 0
CF Abs Ret Cau Multi-Asset A Inc 24 16
CF Eclectica Absolute Macro A Net GBP 24 1
CF Miton Total Return A Acc 24 0
CF Odey UK Absolute Return R GBP 24 0
City Financial UK Equity A Acc 24 5
GLG Alpha Select Alternative DN GBP 24 21
GLG EM Currency & Fixed Inc Alt DN H GBP 24 15
GLG EM Diversified Alternative DN H GBP 24 16
GLG EM Equity Alternative DL H GBP 21 11
GLG European Alpha Alternative DN H GBP 24 7
Henderson Credit Alpha I Gross 24 9
Henderson European Absolute Return A Acc 24 7
Henderson MultiManager Abs Ret A Acc 24 5
Henderson UK Absolute Return A Acc 24 8
IFSL Acumen Defensive A Acc 24 14
IFSL Barclays RADAR A GBP Acc 3 1
Ignis Absolute Return Gov Bd A GBP 15 0
IM Octopus Alternative Strategies A Acc 24 14
IM Octopus Global Strategies A 7 0
Insight Glbl Abs Return £Inc 0 0
JPM Global Eq Absolute Alpha A Net Acc 11 1
JPM Multi-Asset Macro A Net Acc 0 0
Jupiter Absolute Return 24 5
Kames UK Equity Absolute Return A Acc 24 0
L&G UK Absolute Fund R Acc 24 2
Liontrust European Absolute Return R Acc 24 14
Marlborough Defensive Fund A Inc 24 1
Newton Real Return A 24 5
Old Mutual Global Eq Abs Ret A GBP Hgd 24 0
Old Mutual Voyager Alt Invmts A GBP 24 15
Premier Defensive Growth BAcc 18 0
RWC Cautious Absolute Rate & Ccy A GBP 24 21
RWC Europe Absolute Alpha Fund A GBP 23 9
RWC Global Growth Absolute Alpha A GBP 24 3
RWC US Absolute Alpha Fund A GBP 24 7
S&W Saltus Multi Asset A Acc 24 13
Schroder Absolute Return Bond A Acc 24 11
Schroder GAIA QEP Glbl Abs GBP Hdg A 22 10
Schroder ISF Asian Bd Abs Ret A £ H 24 7
Schroder ISF EMkt Dbt Abs Ret A £ H Inc 24 15
Scottish Widows HIFML Absolute Return 1 24 7
Smith & Williamson Enterprise E 24 13
St James’s Place UK Absolute Return Acc 17 15
Standard Life Global Abs Ret Strat Ret 24 3
SWIP Absolute Return Bond A Acc 24 1
The Tenax A 24 7
Threadneedle Abs Ret Bd Ret Net GBP 24 9
Threadneedle Credit Opp Retl Net Hdg 24 3
Threadneedle UK Absolute Alpha INA GBP 21 0
VT ICF Absolute Return Portfolio F GBP 22 11
VT TC Absolute Return Portfolio A Acc 19 9
WAY Absolute Return Port Instl Acc 23 10