Absolute Return Fund

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Absolute Return Fund

A mutual fund or other investmentcompany that takes both long and short positions in order to produce a gain, or at least avoid a loss, regardless of overall market conditions. The idea behind an absolute return states that during a downturn, the gains on the short positions (which produce gains when security prices drop) offset the losses on the long positions. In other words, an absolute return fund seeks to combine the accessibility of a mutual fund with some of the strategies of a hedge fund. Critics contend that absolute return funds carry higher risks of loss than their proponents admit.
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Introduced in 2007 utilizing a strategy developed by Eaton Vance in the 1990s, the Fund has grown to become one of the largest and most successful absolute return funds offered to individual investors.
By adding Putnam's Absolute Return Funds, which seek positive returns of 1%, 3%, 5%, or 7% above inflation over a period of three years with less volatility than has been associated with traditional asset classes that have earned similar rates of return, this suite of target-date/life cycle funds can be especially effective for those in or near retirement.
a world allocation fund with an emphasis on global absolute return managed by Newton Capital Management Limited, a BNY Mellon Asset Management boutique, which specializes in global and regional equities and bonds, as well as multi-asset and absolute return funds.
Absolute return funds have been around for over 50 years but have recently emerged on the investment scene over the last two years and in September 2009 became the number one selling (net) sector in Investment Management Association monthly sales data.
While many absolute return funds focus on a single strategy, we carefully balance numerous independent strategies.
For those investors worried about the end of a bull market in government bonds or even just believe in short-term volatility then absolute return funds offer the opportunity to benefit from those market conditions.
limited partnership and one operating as an offshore Cayman Island corporation) will be renamed the Four Corners Absolute Return Funds.
Although some absolute return funds have been around for longer, the Investment Management Association (IMA) Absolute Return sector was launched on April 28 in 2008.
NEW YORK, March 8 /PRNewswire/ -- GoldenTree Asset Management, a diversified asset manager of a variety of absolute return funds, announced today that by May 1, 2006 it will redeem - eighteen months prior to maturity - all of the outstanding liabilities of GoldenTree High Yield Opportunities I, a $750 million Collateralized Debt Obligation (CDO) issued on October 17, 2000.
Absolute return funds target total rather than relative returns aiming to produce "cash plus" returns having few restraints and investing in more complicated vehicles such as derivates.
Recently the fund manager has invested 1% of the trust's assets in a portfolio of absolute return funds.
BOSTON -- As absolute return investment strategies capture a growing share of investor assets, financial advisors are likely to recommend funds using these strategies to their clients, and many may use absolute return funds in the next 12 months, according to a new national survey released today by Putnam Investments who contracted with Brightwork Partners LLC, to conduct the telephone survey of 256 financial advisors and brokers across all channels, who actively advise retail investors and have been in the business for three years or more.