Flexible Investment funds may enjoy a potentially huge opportunity set but, given valuations and the stage in the cycle, warn Alex Farlow and Diane Earnshaw, it is crucial to understand any portfolio's exposure and approach
The Investment Association's Flexible Investment fund grouping is a real mixed bag. As such, to measure performance success, one needs to look beyond peer group ranking and instead focus on a fund's performance objective. In truth, we do not believe peer group rankings are ever a good way to assess whether a fund is meeting its stated outcome and funds should always be judged on what they are specifically trying to achieve. Managers of funds in the Flexible Investment sector have a significant degree of discretion over asset allocation and, at any point, can invest between zero and 100% ...
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