Cautious investors seek market neutral funds

With bond and property yields low, cautious investors are turning to market-neutral funds for low volatility returns

The recent volatile market conditions have led many retail investors to look at 'safer' asset classes than equities. In the past, their choice would have been limited to government bonds, property or cash. However, with bond yields low and property markets under pressure, advisers have sought alternative assets for diversification. The rise in popularity of market-neutral funds is a response to this need, and developments in the industry under Ucits III have made these funds available for the first time to private investors. Properly managed, a market-neutral fund can provide positive abs...