Ian Lowes: Can structured products deliver where absolute return hasn't?

Alternatives to alternatives?

clock • 4 min read

Rather than trying to determine when a market is going to rise or fall, writes Ian Lowes, structured products can offer a degree of certainty around the outcome for clients in a way active asset allocation cannot

Absolute return funds are designed to make money no matter the market conditions and, unsurprisingly, they have grown in popularity among cautious investors in particular ever since the financial crisis. The notion of having an investment that will not lose you money is a powerful one indeed and the appeal is obvious. Do absolute return funds actually provide the risk/return profile investors expect, though? Looking at 2018, it would appear there are some clear questions over their roles in portfolios, with the average absolute return fund losing money alongside the wider market last yea...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

PA360: It is 'impossible' to pick out the best asset class every year

PA360: It is 'impossible' to pick out the best asset class every year

‘The outsourced route is one that a lot of advisers are now taking’

Hope Coumbe
clock 26 April 2024 • 2 min read
PA360: Framing of information to investors 'extremely pervasive'

PA360: Framing of information to investors 'extremely pervasive'

Consumer Duty states consumer biases must not be exploited

Jenna Brown
clock 25 April 2024 • 1 min read
Schroders chief executive Peter Harrison to retire in 2025

Schroders chief executive Peter Harrison to retire in 2025

Harrison began his career at Schroders as a graduate in 1988

Cristian Angeloni
clock 24 April 2024 • 2 min read