View more on these topics

Brokers wary of absolute future

The future prospects of many absolute return funds have been questioned by advisers who believe there are better investment opportunities in the short and long term.

Absolute return funds have been in the spotlight in the last year with mixed returns and a glut of funds laun- ched recently.

BlackRock’s £996m UK absolute alpha fund has stolen many of the headlines returning 13.7 per cent over 12 months.

Other absolute return funds have been hit hard, such as the UBS absolute return bond fund which has lost 26 per cent over a year.

Hargreaves Lansdown investment manager Ben Yearsley says: “So much money has gone in over the past six months and I am concerned that investors may be fickle and let their disappointment be known if an absolute return fund returns 10 per cent in a strong market which is returning 20 per cent.”

Wilson Dean director Nick Lincoln says: “I believe cash is the better option as you can still get around 5.5 per cent a year, which is a greater return than most absolute returns will be able to offer after the initial and annual fees.”

Kohn Cougar managing director Roddy Kohn says: “I think they can be a huge benefit, provided advisers drill down on each fund.”

Investment Analysis, p20


Out with the old, in with the banker

Praise, speculation and conspiracy theories kicked off last week following the announcement that Jon Pain will take over as managing director of retail markets at the FSA.

Stand your ground

There was probably a quiet celebration in the offices of the Financial Ombudsman Service in South Quay Plaza in London after recent wins in the Court of Appeal involving the long-running dispute with IFA firm Heather Moor & Edgecomb.

A modern horror story

Every day a quick scan of the news reveals some new horror that will change the lives of those involved forever – the unlucky accident on the way to work, a tragic illness that cuts a young life short or the holiday accident that leaves more than just a scar to cope with. We barely […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    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