MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
an InvestmentWires' Publication
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MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
|
Thursday, April 14, 2011 Advisors Warn Against Gimmicky Absolute Return Funds Absolute return funds are seemingly all the rage in mutual fund space but some advisors are warning against employing these funds altogether, Bloomberg reports. Twelve absolute-return funds have begun since 2010, according to Chicago-based research firm Morningstar Inc., including the $3.4 billion Absolute Strategies Fund from Absolute Investment Advisers LLC [see profile], the Eaton Vance Global Macro Absolute Return fund [see profile], and the Legg Mason BW Absolute Return Opportunities Fund [see profile], which started Feb. 28. However, advisors are reportedly skeptical of the new offerings. For most of the funds, “you don't have enough of a track record to make a prudent decision,” David O'Brien, head of O'Brien Financial Planning in Midlothian, Virginia, told the pub. And some funds by nature are "still risky,” according Robert Dowling, a financial adviser at Modera Wealth Management in Westwood, New Jersey. And Robert Schmansky, founder of Clear Financial Advisors in West Bloomfield, Michigan, goes a step further in noting that absolute-return funds may not be worth the effort it takes to evaluate them and fit into a portfolio. He told the pub that investors should stick with bonds to reduce volatility in their portfolios. Printed from: MFWire.com/story.asp?s=36542 Copyright 2011, InvestmentWires, Inc. All Rights Reserved |