Trustnet Magazine Issue 15 February 2016 | Page 4

MONEY CONSOLIDATION 2 trustnetdirect.com trustnetdirect.com UK Gilts (-1.10%) Sterling Strategic Bond (-2.5%) Sterling Corporate Bond (-3.37%) 0% -1% -2% -3% -4% -5% -6% Jan 16 Dec Nov Oct -7% Sep “Absolute return funds have done really badly as well,” Spear added. A recent article on FE Trustnet proved his point – showing that one in three funds in the IA Targeted Absolute Return sector failed to deliver a positive return to investors last year. In the recent bear market – when the FTSE 100 fell from its peak on 27 April 2015 to 20 January 2016 – just 34.5 per cent of IA Targeted Absolute Return funds managed to deliver a positive return. IA Global Bonds (-0.59%) 1% Aug Chris Spear, managing director of Spear Financial, says that over the past few years, this has become one of the biggest challenges at this stage of pension saving. “The aim is to protect capital and deliver an income,” he said. “I am trying to preserve capital and at the moment you don’t get that with bonds – over the past year, NO ABSOLUTES “Insurers are launching new lifestyle funds – they would normally put you into cash and bonds to prote