Zenith defines ‘real return’ category
Ratings house Zenith Investment Partners has announced a dedicated category for 'real return' products.
Announcing the move last week, Zenith senior investment analyst Andrew Yap said the ratings house had sought to develop the category for the growing number of strategies offered to market within the real return space.
He said that products operating within the category were seeking to produce inflation-adjusted returns over the longer term through a process that permitted the investment manager to alter a fund's asset allocation in response to changing market conditions.
"Such an approach is in contrast to the conventional strategic asset allocation (SAA) only approach, which references a pre-defined asset-mix and has been shown to have limitations in more volatile markets owing to its greater reliance on the assumptions of mean-reversion and normality," he said.
The Zenith announcement said that, across the category, the Schroder Real Return Fund remained Zenith's preferred offering, notwithstanding the ratings house's decision to downgrade the fund to ‘recommended' based on its view that the manager might find it incrementally difficult to deliver upon its targeted objective over the near term.
Recommended for you
ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager.
In the run-up to heavy losses expected at the end of the financial year, June has already reported consecutive weeks of adviser losses.
ASIC has banned a former NSW adviser from providing advice for 10 years for investing at least $14.8 million into a cryptocurrency-based scam.
ASIC has sent warning notices to social media finfluencers who it suspects are providing unlicensed financial advice to Australians as part of a global crackdown by international regulators.
