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Absolute Return Vehicles


Definition

An absolute return vehicle has no direct benchmark portfolios. It seeks to earn returns independent of any existing index or benchmark.

Using the term Absolute Return Vehicles :

To create more diversification away from equities and bonds, an investor might include some absolute return vehicles in their portfolio.

Pay Special Attention To :

Absolute return vehicles sometimes charge a high level of fees to investors. Ensure you are getting full value for your fees and that the added diversification and subsequent enhanced returns or lower volatility in in line with these higher fees.

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Related terms

Absolute Return Objective , Hedge Fund , Hedging , Alternative Investments