The challenge with absolute return and liquid alternatives is establishing whether a particular strategy can deliver a distinct and dependable portfolio role. Very different risk engines sit beneath the same broad label, often with materially different return drivers, stress behaviour and governance demands.

Asset-backed securities (ABS) can look like a neat answer to the search for diversified income. The harder question is whether the exposure is genuinely diversifying, properly compensated and understandable under stress. For fund selectors, the portfolio role matters more than the label.