View more on these topics

Fitch points to funds that failed turmoil test

Some European absolute return and multi-asset flexible funds failed their “clearest test since the Lehman fallout” during the recent market turmoil, according to Fitch Ratings.

Research carried out by the fund and asset manager rating group shows European absolute return and flexible funds were down by 2.5 per cent and 7.6 per cent respectively over the first three weeks of August, when concerns over the eurozone debt crisis and global growth sparked volatility in the markets.

Absolute return funds try to achieve positive returns in all market conditions while flexible products strive to deliver higher returns on the upside and lower returns on the downside when compared with a balanced bond and equity allocation.

Fitch says its findings suggest the funds are not always successful in achieving these aims.

It says: “The market volatility seen in August has increased fund return dispersion, particularly on the downside. Compensating for 2011 losses has become a major challenge for many absolute return and flexible funds, which must adhere to strict risk budgets.”

Skerritt Consultants head of investments Andy Merricks says: “Like any other funds, absolute return funds have to be positioned in line with the managers’ views on the market. If the market becomes volatile they can suffer the same dramatic falls that a traditional fund can see regardless of their long/short positions.


Ageas Protect first-half losses down to £1m

Ageas Protect made a loss of £1.1m in the first half of this year compared with a £2m loss in the same period in 2010. Ageas UK recorded an overall profit of £35.4m compared with £8.4m. Ageas Protect, formerly Fortis Life, saw gross written premium inflows almost double to £19.2m from £9.8m and new annual […]

FSA fines firm £8m for market abuse

The FSA has fined trading platform Swift Trade £8m for market abuse. The regulator says the firm, which is a non FSA authorised Canadian company with global operations, has been fined for “layering” which it says is a form of systematically and deliberately engaging in a form of manipulative trading. The FSA says that between […]

Eden Financial launches UK all-cap fund for Himsworth

Eden Financial launches the CF Eden UK select opportunities fund for new recruit Leigh Himsworth today. The fund will typically have around a third in FTSE 100 companies, a third in FTSE mid 250 and a third in small caps with a small amount in cash. It will hold between 40 and 60 stocks and […]

Ex-Cofunds chief Brett Williams joins Insynergy

Former Cofunds chief executive Brett Williams has joined investment boutique Insynergy Investment Management as a non-executive director. Williams is acquiring a shareholding in the business and will work alongside non-executive chairman James Caan and founder and chief executive officer Spike Hughes. In addition to be being the former chief executive at Cofunds, Williams has also […]


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