Absolute Return funds
- Julia Docker
- Aug 7, 2011
- 1 min read
Informed Choice chartered financial planner Martin Bamford was quoted in the Independent on Sunday today, in an article looking at Absolute Return funds.
These are funds which aim to deliver an absolute (greater than zero) return for investors.
They attempt to do this by using a variety of investment strategies, including the use of financial instruments such as derivatives and futures.
Absolute Return funds are often referred to as the retail investor equivalent of hedge funds, as many of the investment strategies they use are very similar.
Within the Independent on Sunday article, Martin commented on the often very high charges associated with Absolute Return funds:
“Many have performance-related charges, with the fund manager creaming off an additional 20 per cent of the outperformance against a target. This ‘hurdle’ to qualify for an additional payment is usually set very low,” says Martin Bamford from independent financial adviser (IFA) Informed Choice.
You can read the Independent on Sunday article in full here and find out more about our views on Absolute Return funds here.