Better Business: The truth behind 130/30 funds

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Jeremy Hall, partner at Edinburgh-based investment boutique Cartesian Capital, explains exactly how 130/30 funds work.

Ucits III regulations have given fund managers far greater flexibility on how they run money. But while greater flexibility can mean higher returns, it can also mean higher risk. There is another potential danger too: the advent of a lot of complicated terminology, so clients are not entirely sure what they have bought, or how returns are being generated. In 2009 a number of fund groups have come together to provide educational material for intermediaries to use within their own businesses and with their end clients. The result is a library of video content, complied for the end co...

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