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S&P highlights shortcomings of absolute return funds

Standard & Poor’s Fund Services has cast a shadow on the performance of absolute return vehicles by claiming that none of them met their own investment objectives in 2006.

Most of the funds suffered as a result of difficult year in fixed income, according to the firm, with most of them also failing to reach their cash benchmark, let beat it as promised.

S&P fund analyst Kate Hollis says many of the funds were poorly positioned to deal with the fixed income fallback while others were caught sleeping by being overly exposed to emerging market debt at the time of the correction in Q2 2006.

The ratings provider says the poor performance is highlighted by the fact that none of the 21 absolute return funds in the arena was given AAA rating, while only Mellon evolution global alpha was given AA.

Hollis says: “Looking ahead a few absolute return funds are now on course to achieve their targets by year-end and most are now outperforming cash. A couple were showing losses after fees and a couple were flat by the end March.”


Win or bust!

It may be an issue that has steadily loomed over the horizon for some time, but fund managers are more and more looking to address the problem of catering financially for life longevity.

CI industry still failing to gain consumer trust

Any consumer trust gained over the past year by the critical illness industry has been undermined by bad claims publicity and unhelpful comments from the ombudsman according to Defaqto. Defaqto says the CI industry did not capitalise on the opportunity to promote the Association of British Insurers’ statement of best practice and left many advisers […]

Break with tradition

How JS&P is aiming to draw advisers with its Return to Work initiative.

Out of Context

“I did see Paul McMillan on PIMS and he absolutely did not see me in a bar after about 11pm. Honestly.”TMP’s Alan Easter “I’m a bloke, I don’t do multi-tasking.”cchm:ping chief Lucian Camp “I think we’ll have to get an exclamation point in our name somewhere.”Thinc Group acquisitions director Nick Boyle on the many rebrands […]


Britain's “Forgotten Army”: The collapse in self-employed pension membership – and what to do about it

Pension scheme membership among employees has risen by more than five million in the past four years because of the policy of automatic enrolment into workplace pensions. But Britain’s army of 4.4 million self-employed people, who account for one in seven of the workforce, are not covered by automatic enrolment. Pension coverage among the self-employed […]


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