View more on these topics

M&G’s Willcocks questions worth of absolute return

M&G managing director global sales Jonathan Willcocks has questioned the demand for absolute return funds.

Willcocks believes that only cash can offer a positive benchmark return in all market conditions and that while 2008 was supposed to be a good environment for absolute return products, a number of them failed to deliver.

He says: “These products should deliver over all timeframes and if they fail in a market like last year’s, which was ideal for them, then it is clear they still have plenty of questions to answer.”

Willcocks considers that investors should start looking at using cautious managed funds as the core component of their portfolio following the falls that were seen in UK equity income funds in 2008.

According to Investment Management Association figures, the average cautious managed fund fell by 15 per cent last year compared with a 24.5 per cent fall in the UK equity income sector.

Whitechurch Securities managing director Gavin Haynes says: “Each fund must be judged on its merits. The sectors are two very different animals.”

Recommended

Is the end nigh?

Bull market resumption or bear market rally? There are advocates on both sides of the divide. Interestingly, I’ve counted more in the “Worse to come” camp than the “Get stuck in now before it’s too late” brigade. But is there a third way? I believe so.

Bank of England unclear on easing

The effects of quantitative easing on the British economy remain unclear, according to the Bank of Englands Quarterly Bulletin. The report, published today, analyses the impact of the Banks Asset Purchase Facility (APF), which started buying gilts and corporate bonds earlier this year.At its March meeting, the Banks Monetary Policy Committee (MPC) announced that it […]

Navigating volatility

The making of any fund can be seen in how it responds to crises and opportunities. In this short video, Head of Multi Asset at Royal London Asset Management Trevor Greetham outlines how the Royal London Global Multi Asset Portfolios or GMAPs navigated through Brexit and the US election cycle. He also highlights the importance […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment