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Lipper: Can Absolute Return Turn the Tide In 2019?
FYI: Absolute return (AR) funds generally seek to generate a specified return over a given period. This can be an amount over a rate of interest, such as LIBOR, or an inflation metric. Often, the given period is stated as three years, but terms can be less transparent, such as “market cycle” or another loosely defined rolling period.
The attraction of these types of products for many investors is the potential for lower volatility on returns and the perception they will not produce sustained periods of capital loss.