Absolute Return Portfolios

These portfolios are created for clients who are uncomfortable with the sharp swings that occur in stock market values but seek the potential for higher returns than available from investing in cash and government bonds.

How do they work?

The portfolio is invested across typically 20 funds with a range of investment strategies that are designed to generate positive returns even if markets generally do not rise. Typically fund managers in this space are not tied to any specific benchmark and have a wider set of investment instruments at their disposal. It is this increased level of flexibility and sophistication that provides the potential to generate positive returns that are not dependent on market direction.

An Absolute Return Portfolio does not offer any form of guarantee of positive returns – it is a flexible alternative strategy that may be suitable in uncertain markets.

Funds at Lloyds

Underwriters at Lloyds want to achieve a good return on their Funds at Lloyds but are vulnerable to volatility. A steep market setback could the erosion of any surplus and lead to a call for top-ups. That means that an Absolute Return Portfolio can be a suitable solution.

 

» If you have any questions about the portfolios, please do not hesitate to contact us.