Absolute Return sector "healthy", IMA says
One of the more closely-watched sectors for cautious
private bank customers who want to invest money is ’healthy and growing’, a report has shown.
The Investment Management Association (IMA) has released a new report analysing the Absolute Return sector- funds which offer some form of guaranteed return to investors, usually on an annual basis.
Absolute Return investments have represented part of the strategy of many people holding money in private banks over recent months.
This is because they have been put off from moving into sectors where returns are not guaranteed, due to the volatile markets in the financial crisis.
The IMA also said that the sector’s name (Absolute Return) was ’appropriate’ and that a timeframe in which the return for customers was expected has been added to the sector’s official definition.
’Typically funds in this sector would normally expect to deliver absolute (more than zero) returns on a 12 months basis,’ the new version states.
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Wednesday 09 September 09
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