RWC Partners

A number of fund providers are supporting the split of the Absolute Return sector into sub-categories based on strategy, which could see many vehicles in the Unclassified and Specialist sectors moved into the new groupings.

GOSLING'S GROUSE

Investors have suggested the eurozone crisis has not yet reached another critical stage, despite a €100bn bailout of Spanish banks failing to prevent the country's borrowing costs reaching record highs.

Ian Lance and Nick Purves have allowed cash to rise to 15% on the RWC Enhanced Income fund due to a lack of opportunities in the "expensive" equity market.

RWC Partners is urging the IMA to look at the Morningstar categories when the body decides how to revamp the Absolute Return sector later this year.

FRIDAY 13TH

Corporate profitability in the UK may have bounced back over the past two years but it is not likely to remain at high levels, according to RWC Partners' Nick Purves.

THE BIG QUESTION

THE PARABLE OF FOUR FUND MANAGERS

The VIX, or volatility index, sunk 15% to its lowest level in three months yesterday as European leaders announced plans to alleviate the debt crisis.