After a year in which almost 90% of absolute return funds worldwide failed to deliver their basic promise – a positive return for investors regardless of trading conditions – it might be time for them to change the way they do business or change their name.

Far from protecting investors, in the 12 months to the end of February 2016, the sector had an average loss of 5.2%, according to Fitch Ratings, compared with a fall of 0.73% in the S&P 500. There were losses at 89% of absolute return funds, Fitch said. It was the sector's weakest performance since 2008 and several funds were downgraded by the agency as a result.