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.
AUTHOR
Oksana Patron
Recommended for you
Wealth managers who lack expertise in alternatives could find themselves at risk of losing clients, according to iCapital, with a shift towards evergreen funds already at play in their asset allocations.
The development of semi-liquid private equity funds is providing an easier way for wealth managers to access the asset class, according to a panel, while firms are substantially improving their valuation processes.
Generation Development Group has appointed former Evidentia chief executive Peter Smith as an executive director.
Equity Trustees has paid three infringement notices issued by ASIC in which the corporate regulator alleged it made misleading statement about investments in a sustainable bond fund.
