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

Trian and General Catalyst to purchase Janus Henderson for $7.4bn

Trian and General Catalyst to purchase Janus Henderson for $7.4bn

Will continue to be led by current management team

Patrick Brusnahan
clock 23 December 2025 • 2 min read
2025 reflections: How strong companies trumped politics

2025 reflections: How strong companies trumped politics

Fears of an AI market bubble persist

Ryan Hughes
clock 23 December 2025 • 3 min read
What does 2026 hold for investment?

What does 2026 hold for investment?

‘The disruptors of yesterday are now the establishment’

Jen Frost
clock 17 December 2025 • 3 min read