The majority of intermediaries are interested in investment vehicles offering absolute returns ami...
The majority of intermediaries are interested in investment vehicles offering absolute returns amid increasing criticism of relative performance.
In a survey by Investment Week's online sister publication IFAonline, some 68% of advisers said they and their clients are interested in absolute return vehicles, with just 31% still looking for relative return vehicles.
Yet when asked if they feel annual management fees are paid to managers to make money, 84% agreed, with just 15% believing managers are being paid not to lose money.
Another clear indicator of absolute returns gaining favour is the response to whether fund managers should actively manage cash in volatile market conditions. While managers such as GAM's Andrew Green and Odey's Hugh Hendry have been criticised for their high cash weightings, 76% of IFAs agree this is a tool active managers should use.
Only 10% of those asked said fund managers should not actively manage their cash, while 13% were not sure.
The IFAonline survey took responses from 150 intermediaries.
Moves to overweight equities and fixed income
The Big Interview: Focus on ethical investment
View from the front row
'No control or oversight'
359 new customers in 2018