Henderson: Advisers being misled by IMA on absolute return funds

Speaking at the Thames River Multi-Manager Forum Academy yesterday, Jon Hodesdon, associate director of multi-manager accounts, said the IMA's lack of clarity around the funds puts IFAs in an "awkward place" when trying to advise on them. The IMA's definition of absolute return funds - ‘managed with the aim of delivering absolute (i.e. more than zero) returns in any market conditions' - was "fair enough", Hodesdon said. But he said the accompanying footnotes could mislead advisers. "The devil is in the detail, and it is the detail that can come back and haunt you," he said. "I'm...