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Article: Opinion: Inside view - Hunting investment opportunities with absolute returns.
- Article from:
- Pensions Week
- Article date:
- March 12, 2007
CopyrightCOPYRIGHT 2007 FT Business. 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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Byline: Ken Adams
Stock market investors during the 1990s would have deemed the concept of an absolute return fund as wholly unnecessary. Then, a healthy future return was considered a near certainty with traditional investment funds, which aimed to outperform an index, enjoying double-digit annual gains on a regular basis. However, the following three-year bear market taught a fundamental lesson: the aim of relative outperformance is of little comfort when markets are in freefall. Against this backdrop, and with the advent of UCTIS III regulations, the idea of an absolute return fund was born.
It is notable the industry has yet to find consensus on the ...