Trustnet has introduced ratings for all funds in its absolute return sector. Of the 55 funds, seven attained a triple A rating and 16 received no rating at all.
The company includes any fund that follows an absolute return approach, regardless of which sector it is in, although it gives managers the opportunity to distance themselves from the sector except if they have total or absolute return in its objective or fund name.
Funds with triple A ratings include BlackRock UK absolute alpha, CF Ruffer absolute return and JPM cautious total return while funds with only a single A rating include New Star diversified absolute return and Cazenove multi-manager diversity.
The ratings are based on discrete positive periods, correlation and whether the fund is worth having in terms of producing greater performance than cash.