Advisors call for rethink of absolute return definitions By Chris Salih
11 June 2012 8:00 am Advisers have called for a simplified definition for the absolute return sector after the Investment Management Association published three potential proposals for an overhaul of its current structure. The trade body is considering redefining and dividing the sector to group the funds alongside traditional asset-based sectors. One option being explored is to sub-divide the existing absolute return sector, indicating which funds are targeting more stable …
Many Absolute Return Funds Fail to Deliver By Elaine Moore
Absolute return funds look set to remain a popular choice among investors seeking security in volatile markets – with more money than ever forecast to flow into the sector this year. According to Fitch Ratings, the Ă‚ÂŁ23bn fund sector will continue to grow in 2012, in spite of disappointing performance in 2011. However, financial advisers are expressing concern over investors’ enthusiasm for these funds, and their understanding of the likely …
Alternative Strategies Allocation
Last week my partner and I participated in the webinar about Alternative Investment strategies and how to position them in your portfolio. We also discussed the types of alternative strategies that are out there. We also talked about what is commonly called the Endowment Model and below is the performance of the Harvard Management Company, which manages the endowment of Harvard University and I see that they have excellent …
Analysis-Absolute Return no refugee in stressed markets. By Natsuko Waki
LONDON (Reuters) – Investors who bought into “absolute return” funds hoping to make money in relentlessly turbulent trading are instead finding their capital eroded in markets that are making a habit of sudden mass flight from risk. High correlation among different asset classes and shrinking liquidity are making life difficult for the $180 billion (114.8 billion pound)-plus absolute return funds industry, which unlike hedge funds has limited means to ride …
Insight: Absolute return funds: no sure refuge By Sinead Cruise and Tommy Wilkes
Thu, Aug 18 2011 LONDON (Reuters) – Absolute return funds could be turning into Europe’s next investment mis-selling row. As freefalling equity and bond markets ravage people’s savings, private investors globally are piling into the funds, which aim to deliver positive returns whether markets are rising or falling. That demand has driven the assets held in absolute return funds to 182.1 billion euros globally at June 30, data from Lipper, …
Time to revisit absolute-return strategies? By Gordon Ross
Published: August 19, 2011 Central banks’ attempts to sustain the global recovery have left many bond investors in a tricky position. With rates at extreme lows, there is little room for further declines and consequently less opportunity for bond investors to achieve capital gains. Unless the economy slips back into recession, yields should move up in the next year or so, leading to capital declines in fixed-income strategies managed against …
Indiana Public Retirement drops GMO as absolute-return manager By Barry Burr
By Barry B. Burr Published: November 4, 2011 Indiana Public Retirement System, Indianapolis, terminated GMO, which ran $132.3 million in an absolute-return strategy for the $23.5 billion system, according to an investment board report.  “In our continuous effort to mitigate the overall fund’s correlation to equity markets, it is our desire to minimize directional bets in the hedge fund portfolio,” the report said. “Approximately 70% of the monies in …
Promise of Profits, No matter how stock markets fare
Promise of profits, no matter how stock markets fare gail bebee Special to Globe and Mail Update Published Wednesday, Oct. 12, 2011 5:00AM EDT Once the exclusive domain of sophisticated, high-net-worth investors, hedge funds are now accessible to the average investor. With the promise of profits no matter how stock markets fare, these so-called absolute-return investments seem like the perfect cure for ailing portfolios. Pension funds use hedge funds to …