View more on these topics

FCA to review absolute return funds


The FCA plans to include a review of absolute return funds in its asset management market study, according to reports.

The FT reports that the regulator is investigating absolute return funds amid poor performance and the flood of money to the strategies in recent years.

A spokesperson for the regulator told the newspaper: “We are looking at absolute return funds as part of the overall study.

“Across the market study we are looking to understand how competition works for asset management products and services.”

Two-thirds of absolute return funds have posted negative returns for this year, with the worst offenders down around 20 per cent since January, Morningstar reports.

Assets in UK-domiciled absolute return funds rose to a high of £59bn last year, its highest ever. The first six months of this year have seen another £5.3bn of inflows.

The FCA announced last November the terms of reference for the asset management review, aiming to establish whether competition is working in the industry and that investors are getting value for money.

A final report is due next year, with an interim report due in Q4 this year, delayed from the original Summer 2016 deadline.



BlackRock launches absolute return multi-asset fund

BlackRock has launched an absolute return multi-asset fund that will focus on factor investing. The Strategic Funds Style Advantage fund will be managed by chief investment officer Ked Hogan and his factor-based strategies group at BlackRock. The new fund aims to combine return drivers such as value, momentum, quality and volatility with a long-short portfolio of more […]

FCA interior logo 620x430

Is FCA paving the way for asset management clampdown?

The FCA’s examination of competition in the asset management industry could result in more direct action against firms, say experts. The FCA today set out the key areas it will focus on in its market study into competition in the asset management industry. The regulator will assess firms on how they compete to deliver value, […]

Fund groups’ failure to ‘show us the money’

Pay is a sensitive subject. Discussion around pay always conjures up for me the Channel 4 documentary Show Me Your Money, where staff at Pimlico Plumbers took part in an experiment to tell each other just how much they took home in their pay packet. The twist was that once any perceived unfairnesses were exposed, […]

Platforum head of intermediary research Miranda Seath

Platforum: Cofunds deal is shrewd but Aegon has to win over advisers

After a prolonged period of uncertainty, Aegon’s acquisition of Cofunds is good news for Cofunds users and good news for the industry. Whilst the sale of Cofunds for £140m represents a £65m net loss for Legal & General, it is in line with L&G’s stated strategic intent to focus on its corporate assets. Some might […]

Finding security in bond markets

Martin Foden, head of credit research at Royal London Asset Management, explores the role of secured bonds, considering the impact of default and the characteristics of secured bonds versus supranationals and highlighting some examples. He also examines the evolution of the credit market and rating agency inefficiencies. Read the article in full: The value of […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment