View more on these topics

Jupiter chief sees massive potential in absolute return

Jupiter chief executive Edward Bonham Carter says he would like to introduce an absolute return fund although the market must develop further before this will be considered.

Bonham Carter says the sector offers a middle ground for investors’ assets and can only grow in size.

He considers that a large part of the population aged 50 to 70 want their portfolios benchmarked against cash and are happy to give up some of the upside from long-only funds but do not want to invest everything in bonds due to inflationary concerns.

He says: “Some of the techniques in the hedge fund world that are available only to sophisticated offshore clients could be presented in an onshore portfolio, which represents an interesting opportunity.”

Bonham Carter says any involvement will be medium term and depend on the group finding the right fund manager and product design.

He says: “One problem we have is investors believe there is a guarantee in absolute return products so some education is needed from fund managers and advisers.

“Fund managers need the skills in house, in terms of shorting and on the hedge side, but I feel there is scope for the right person and process and it is ultimately an area I would like to get involved in but we want to get it right.”

Chelsea Financial Services managing director Darius McDermott says: “Absolute return is popular now while markets are difficult. That may not be the case in 12 to 18 months time but they do need to make sure that the product is right in terms of the manager, the systems and the ability to short.”

Recommended

Band aid

The introduction of transferable inheritance nil-rate bands for married couples and civil partners continues to provide a massive opportunity for financial advisers to demonstrate their added value to clients and professional introducers.

F&C Property plans to buy Reit

F&C Property has set out plans to acquire a 70 per cent stake in international property asset manager Reit for 60m. The new company, F&C Reit, will have combined assets under management of 8.5bn.

Co-habit forming

The recent Burden case has thrown the inheritance tax treatment of unmarried people living together into the spotlight.

State of the markets: UK equity income

Artemis Income Fund manager Nick Shenton discusses the state of the UK equity income market with journalist Alexis Xydias. With the first three months of 2015 showing strong returns for both the Artemis Income Fund and UK markets generally, Nick Shenton discusses the fund’s top contributors – including overseas holdings Novartis and Bayer – and […]

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