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Waters wants to see 130/30 skills

FSA director of retail policy Dan Waters says the challenge for managers running 130/30 funds is to prove they have the skills to manage these funds.

At the Tax Incentivised Savings Association conference in London last week, Waters said: “One of the interesting things we have seen in some jurisdictions where these 130/30 funds have been popular is that some of the returns have not been terribly encouraging in terms of the competence or skill of long-only managers managing portfolios like that.

“The general challenge for fund managers in the UK and Europe Ucits III area is to have the skill to manage such a product.”

F&C, Threadneedle and UBS have launched 130/30 funds in the UK and also run long/ short hedge funds.

Chelsea Financial Services managing director Darius McDermott says: “Advisers have to be very cautious as 130/30 funds are a new phenomenon in the UK.”

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