Robust performance

Event driven strategies, including merger arbitrage and distressed securities, have performed robustly during the three years to August. Over the past year, the funds in the sector tracked by S&P Micropal returned 17.6% in dollar terms. In the three-year period the sector returned 44.21%, giving an annualised rate of return of 14.2% and annualised volatility of 13.18%.

The relatively strong performance of all the funds, rather than a few dragging up the average of the rest, is related to the