Daxter: You have demonstrated a complete lack of understanding about the investment strategy of the Fund.

Comparing the performance of this Fund against the total return of a long only equity strategy is like comparing chalk and cheese. This is completely neglecting the risk element which as I hope you are aware is a key element of a controlled investment strategy. And comparing it to 3 month LIBOR at the current time is also misleading as LIBOR has hardly been operating at historic averages.

The core volatility must be taken into account and on this Fund at 4.94 over 3 years is below that of the average investment grade Bond Fund. Also, the number you are really looking for is the information ratio, which is the risk adjusted return of the Fund. Anything above 0 represents a return above what could have been expected for each unit of risk taken. at 0.73 over three years this is an impressive risk adjusted return.

I have seen Mark present and have spoken to him on several occasions and he has an excellent understanding of his investment remit and makes it clear that the Fund will lag during bull markets. The multi asset class capitulation during the height of the credit crunch was a unique event and the Fund did ewell to protect capoital as well as it did.

Just to make the point, there are few UK equity Funds whoch have returned 80% since March 2009 (which is the market low I assume you meant to refer to) but one that has is the Schroder UK Alpha Plus Fund.

Over 2 years however the Fund is down 5.67% against a gain of 11.97 on this Fund. Remember there are lies, damned lies and statistics. They can make whatever point you want without the necessity for context.

This is not a core Fund, but as a Portfolio diversifier and risk management tool it has a definite role to play. It displays low correlation to other asset classes and researching the underlying asset classes and strategies will provide the understanding and transparency you require.

Very few absolute return funds have delivered the goods. The sector is new and the peers for comparison purposes can run very different strategies. This fund, given all the press attention and assets raised, is very mediocre. For example, since March 2008 it has failed to beat a cash benchmark of LIBOR GBP 3 months. When you consider the fees associated with the fund, its a rip-off! There are other absolute return funds that have delivered 80%+ over this same period. In the 10 months of 2009 so far the FTSE All-Share has gone up 21% while this fund has gone up 8%. Absolute return yes, competitive no. Much better available in my opinion and cheaper too

This fund's record speaks for itself, but the stuff it invests in is completely lacking transparency. As far as I can see performance is wholly underpinned by derivative contracts. Bearing in mind what's happened in the hedge fund world, shouldn't there be some explanation of how these contracts work, and what is in place to protect investors from being screwed over when these miracle cures join the litany of other 'too good to be true' investments that have proved to be a lot riskier than they first appear? Let me guess, it's backed by a triple-A institution, like Lehman Brothers.

How is the manager locked in to this fund?