View more on these topics

L&G takes European approach to absolute return

The European absolute return fund is one of two absolute return funds recently introduced by Legal & General.

Like the UK absolute return fund, the European absolute return fund aims to achieve a positive return in all market conditions and was launched to meet adviser demand for this type of product.

Fund managers Gavin Lauder and Ian King will take full advantage of the ability to invest in derivatives to take synthetic short positions under the Ucits III rules.

Senior portfolio manager Lauder joined Legal & General Investmnet Management in 2007 from BlueBay Asset Management, where he was a global equities analyst. He has also worked as portfolio manager at UBS O’Connor and an analyst at SG Warburg – now part of UBS – and Goldman Sachs.

Head of active European equities King is a hedge fund specialist who also joined L&G in 2007. He previously helped to establish the KDR Europe hedge fund and spent 10 years at American Express Asset Management.

Lauder and King will use top-down research to determine country and sector allocation, then conduct stock-specific research to construct a portfolio of 20 to 26 positions. They will invest long, like a conventional European equity fund, in companies with share prices that they exoect to increase.  Short positions will be taken, through derivatives, in companies that appear to be deteriorating so that the fund does not depend only on rising markets to generate returns.

All currency exposure will be hedged back into sterling on a daily basis, to reduce the impact of exchange rate fluctuations.

IFA Hargreaves Lansdown says that given its strategy, the fund may underperform in a sharply rising market, but should outperform in a falling market. However, it could face competition from Gartmore, Jupiter and Liontrust.

Recommended

1

Warning that early Nest savers will pay for those joining later

People who start saving into the national employment savings trust early on will end up subsidising those enrolled later, Towers Watson has warned. Nest is set to charge members 2 per cent of all contributions on top of a 0.3 per cent annual management charge until the costs of setting up the scheme have been […]

Couple face insider dealing charges

An investment banker and his wife have been charged with 13 counts of insider dealing and one of conspiracy to commit insider dealing.

Rise of the machines

Head of Sustainable Investing at Royal London Asset Management, Mike Fox, looks at the case for including artificial intelligence within a sustainable investment strategy. Read the article in full here The value of investments and the income from them is not guaranteed and may go down as well as up and investors may not get […]

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