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‘The pursuit of absolute returns is an investment philosophy rather than an asset class in its own right; it acts like a large umbrella beneath which a vast array of strategies fit. It is therefore important for investors and their advisers to understand what the various strategies are trying to achieve, how the individual funds aim to generate their returns and the specific risks they take in order to grasp the role each fund can play in their client’s portfolio.’
Reza Vishkai, Head of Specialist Investments, Insight Investment.
Understanding what is under the bonnet: The IMA launched its Absolute Return sector in April 2007 and defined absolute returns funds as: ‘Funds managed with the aim of delivering absolute (i.e. more than zero) returns in any market conditions. Typically funds in this sector would normally expect to deliver absolute returns on a rolling 12 months basis'. They do so through a variety of strategies and may behave differently to one another in different enviroments.
Long-term track record: The first of the Absolute Insight investment vehicles was launched in May 2005 and was domiciled in the Cayman. Following the introduction of UCITS III, Insight launched a version of the range in February 2007, domiciled in Ireland, offering the broadest range of absolute return funds across the IMA Absolute Return sector. As at 30 September 2011, £1.98 billion was invested
in the Absolute Insight range.
Integrated approach to risk: Insight has developed a robust and integrated risk management process for the Absolute Insight range. Overall responsibility and oversight lies within the Absolute Return Investment Committee (ARIC) which is chaired by the Head of Specialist Investments and includes Insight’s CEO and CIO for Investments, heads of each investment area and the independent Risk and Quantitative Strategy Teams.
Specialist skill sets: The depth of our specialist investment teams, award-winning derivatives capability and strength of our integrated risk structure places us in a market-leading position to provide our broad range of absolute return solutions to investors.
Please note the value of investments and any income will fluctuate and is not guaranteed (this may be partly due to exchange rate fluctuations). Investors may not get back the full amount invested. Past performance is not a guide to the future.
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