FCA probes absolute return funds as part of competition study

Worst performance since Lehmans

Absolute return vehicles are coming under scrutiny from the Financial Conduct Authority (FCA) as part of its work looking at whether asset managers are offering investors value for money.

The FCA is currently completing a major review of the asset management industry, and the Financial Times reports this will include the absolute return sector, which has come under fire for recent poor performance. Ten key issues facing asset managers in H2 2016  Its report was due to be published in summer 2016 but this has been delayed due to Brexit and will now be released in Q4, with a final report set to be published in early 2017. The study will look at whether competition is working effectively among asset managers to enable investors to get value for money. If it finds faili...