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

Advisers look to capital accumulation in Q2 2025

Advisers look to capital accumulation in Q2 2025

Interest in inflation protection nudges up

Jen Frost
clock 18 July 2025 • 3 min read
For companies – and their investors – management matters

For companies – and their investors – management matters

'Management, whatever the setting, really is a difference-maker'

Gabriel Sacks
clock 17 July 2025 • 4 min read
'No difference in my view': Reeves LTAF-ISA decree not enough to make platforms offer them

'No difference in my view': Reeves LTAF-ISA decree not enough to make platforms offer them

Retail platforms await further rule change details

Eve Maddock-Jones
clock 16 July 2025 • 4 min read