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Like with-profits, absolute return funds aim to provide positive returns regardless of market conditions.
I was asked to return funds I had received, a total of $1,000.
It would return funds for students who failed to pass tests at a stipulated level.
This allows the federal authorities to return funds unilaterally to failed states that lack the resources to build watertight cases.
Selling portfolio companies onto public markets has been constrained, making it ever harder to return funds to investors.
The nearest equivalent to target-date funds fall into two categories; balanced (or managed) funds and "absolute return" funds.
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Putnam Investments in Boston has bet big on absolute-return funds.
Jupiter is looking at absolute-return funds with performance fees, in which it would take some control of asset allocation.
The real problem with the S.E.C.'s focusing on high-return funds is that it skates over the crucial distinction between short- and long-term investing.
Absolute-return funds may appear to be the perfect investment but there are widespread concerns that they are failing to deliver on their promises.
"We don't like relying too heavily on individual fund managers, and absolute-return funds are very biased towards their skill or luck," he said.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com