Real return funds catch investors’ attention
Advisers and investors are looking at real return funds, which have quadrupled to almost $10 billion in assets in recent years, as they provide a higher certainty of achieving a real return objective with a lower level of risk, according to Perpetual.
According to Perpetual’s head of multi asset, Michael O’Dea, real return strategies offered investors the convenience of an expanded set of investment opportunities within a single fund and had tremendous scope to adjust the asset allocation, based on the manager’s view of the likely returns and risks of any asset class.
“Leading real return funds can also utilise investment strategies such ‘relative value’ to exploit risk and return imbalances between asset classes,” he said.
“This enables investors to better diversify risk and enhance their return.
“Real return strategies offer a breadth of investment ideas and portfolio construction that can protect and grow investors’ capital,” he said.
According to a WealthInsights’ report, the multi asset strategies composed up to 19 per cent of investor portfolios, up from an average of eight per cent in 2007.
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