The IMA has followed through on its threat to name and shame fund managers that have failed to deliver positive returns on their ‘absolute return’ funds.
The IMA in March responded to criticism of funds which did not fulfil their promise of returning positive performance regardless of market conditions, including a pledge to introduce a monitoring system that names products which have posted losses in rolling 12-month periods.
The data, posted last week, reveals that seven funds in the sector – including BlackRock and GLG Partners products – posted losses in more than half of the 24 12-month rolling periods under review.
Jeremy Roberts, head of UK retail sales at BlackRock, said the appointment of Nigel Ridge to work with Nick Osborne on the group’s UK Absolute Alpha fund left it “well positioned to take advantage of market conditions in the coming months”.
GLG said it was also confident new managers would turn around its Emerging Market Currency & Fixed Income Alternative and Emerging Market Diversified Alternative funds.
| Fund | Number of negative 12-month periods in last 36 months (max 24 | 3-year return to May 31 (%) |
| GLG Alpha Select Alternative | 21 | -4.9 |
| RWC Cautious Absolute Rate & Currency | 21 | -1.5 |
| Blackrock UK Absolute Alpha | 19 | -5.2 |
| GLG Emerging Market Diversified Alternative | 16 | -11.6 |
| CF Absolute Return Cautious Multi-Asset | 16 | -0.3 |
| GLG Emerging Market Currency & Fixed Income Alternative | 15 | -2.4 |
| Schroder ISF Emerging Market Debt Absolute Return | 15 | -1 |
