On target?

Target return funds are on their way to building the all-important three-year track record, but in many cases it may not be the track record expected. The vast majority of funds have not only underperformed their benchmarks - often because they were pegged to an ever-increasing figure - but many have also failed to beat more nominal indices, or even their peer groups. One of the first hurdles is discerning the type of fund. Some data providers lump target and absolute return funds together, despite objectives being, in some cases, notably different. BlackRock, however, clearly defines t...