FINANCIAL NEWS: Schroders offers absolute return on funds to ease woe

Fund manager Schroders is offering charity clients new "absolute return" products which aim to ensure positive returns.

The funds are similar to hedge funds but do not "short sell", meaning the fund will not sell shares which it does not own to buy them later at a lower price.

They are also more tightly regulated than hedge funds and are more tax efficient.

But unlike conventional equity funds, the manager of an absolute return fund can preserve capital by holding cash, or changing asset allocation very rapidly.

Schroders believes that in the current investment environment, world markets may not rise significantly. In such circumstances, it argues the benchmark approach to investment is no longer viable.

Rupert Robinson, managing director of Schroders Private Bank, said: "Our clients are looking for an absolute return within a familiar structure."

Have you registered with us yet?

Register now to enjoy more articles and free email bulletins

Register
Already registered?
Sign in

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus