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...

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