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Article: TRENDS: Absolute returns need clarification.
- Article from:
- Fund Strategy
- Article date:
- September 11, 2006
CopyrightCOPYRIGHT 2006 Centaur Communications Limited. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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The proliferation of absolute return funds, especially since the introduction of Ucits III, is set to continue, but investors need to be more aware of the differences in the products on the market.
Over the past few years we have seen a growing number of products described as "absolute return" funds. While the concept is appealing, and we believe that they have the potential to be a useful and popular tool, absolute returns do not come without risks. Key among our concerns is the potential for confusion about what these funds can deliver, and how it is to be achieved.
Demand for absolute returns stems from the post-millennial bear market and ...