Investment products have become over sophisticated, while the basic principles of investing in real assets have been ignored, according to Alan Stokes, head of investments at Lawrence House Fund Managers (LHFM).
He said: "My concern is that too many advisers of limited investment experience have been continually seduced by new investment ideas and strategies without fully appreciating the potential consequences when things go wrong. " He continued: "Recent events truly highlight a concern we have had for some time, namely many advisers and investors failed to understand what they had been buying. The rush to invest in 'multi strategy' portfolios smacked of expressions such a 'new paradigm', which was so popular during the TMT extravaganza. Stokes added that 'multi strategy' portfolios have in...
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