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Absolute funds can hold on to talent

Thames River Multi-Capital says launching Ucits III compliant absolute return funds can be a way for firms to retain talented fund managers.

It says the attraction of the funds for investors is a steady 7 to 8 per cent return but, in many cases, funds have underperformed and Thames says some are just extensions of long-only products that have delivered exceptional returns.

Thames says the leaders and followers in the absolute market are going to change. It points to 100 new launches across Europe in the last eight months. Many entrants are hedge fund managers using their hedge experience and techniques to produce absolute returns in a regulated framework. But it expects some of these hedge fund managers to return to the high-fee hedge fund world.

Most Ucits III absolute return funds charge performance fees, which are growing in popularity, according to Thames.

It says the number of IMA fund groups which charge performance fees has risen to 38 per cent from 27 per cent over the last 12 months but Thames co-heads Rob Burdett and Gary Potter point out that performance fees usually come with a cap on the size of the fund, so the manager’s interests are aligned with the investor rather than trying to keep growing the fund.

Burdett says: “The quality of investment managers coming to the absolute return sector is the highest we have seen and it is here to stay. There is a lot of talent coming in to the sector, such as Philip Gibbs at Jupiter and Ajay Gamb-hir from RWC Partners.”


Lloyds launches scheme for borrowers in negative equity

Lloyds Banking Group has launched a new scheme to help borrowers suffering from negative equity to move home. It allows borrowers who are in negative equity to borrow up to 120 per cent loan-to-value to move to a property of the same value, buy a bigger home or downsize. Borrowers have to raise an additional […]


States’ evidence

The turn-round in M&A and IPO activity will provide another year of strong US equity returns


Barclays to close advice arm

Barclays is closing its advice arm, Barclays Financial Planning, and exiting the advice market for retail consumers, Money Marketing can reveal. The bank will continue to offer advice to high-net-worth clients through Barclays Wealth, but will no longer give retail clients advice through its branch network. Barclays Stockbrokers, which offers an execution-only service, will not […]


Ageas offers Low Start cover deal

Ageas Protect has launched a term and critical-illness product which offers the same level of cover available on the firm’s YourLife menu plan at a lower initial cost. Ageas Protect, which rebranded from Fortis Life on January 10, has launched its Low Start cover to target customers who need comprehensive cover but cannot afford to […]

Creating opportunity out of change

By Denise Wond, marketing manager The buy-to-let market has recently been the subject of a raft of tax changes, all of which make it a less profitable and less appealing proposition for investors. In response, we’ve seen a dip in demand for BTL mortgages and that’s bad news for many advisers who will now be looking […]


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