View more on these topics

‘Absolute beginners must prove their credentials’

BlackRock managing director Alex Hoctor-Duncan is warning of potential “roadkill” in the absolute return sector due to the number of funds coming to market.

Hoctor-Duncan says investors and advisers must be cautious when selecting funds and need to understand that there are various ways of achieving absolute returns.

He says: “I think advisers have to take a longer look at the likes of Sharpe ratios and information ratios as there are so many different products in the space, ranging from total return to 130/30 strategies. Take Libor-plus funds, for example. They cannot beat Libor without taking a level of risk.”

Hoctor-Duncan says many funds still have to prove that they can perform in differing market conditions.

He says: “We have to see how these funds operate over the long term in differing markets – something our BlackRock UK absolute alpha fund has done. That is why so many have started to invest in it as it has delivered in differing conditions.”

Recommended

BBA sees approvals fall to record low

The British Bankers’ Association says the 27,968 house purchase approvals in May were the lowest ever recorded by the association. The figure was 6,784 down on April.

Swip duo win OBSR ratings

Old Broad Street Research has awarded A ratings to the Swip multi-manager diversity and multi-manager select boutiques funds. Both funds are run by Mark Harries and Simon Wood. OBSR is withdrawing the A rating of the Insight Investment UK dynamic managed fund.

How to use wills to protect your clients’ wishes

March was Free Wills Month! Free Wills Month brings together a group of well-respected charities to offer members of the public aged 55 and over the opportunity to have their simple wills written or updated free of charge by using participating solicitors in selected locations around England and Wales. Research by the Law Society* highlighted that only 64 […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com