Trustnet Magazine Issue 21 September 2016 | Page 24

The long/short strategy HENDERSON UK ABSOLUTE RETURN COOMBS USES THE HENDERSON UK ABSOLUTE RETURN FUND, which is an equity long/short strategy, despite the fact it uses a performance fee. “In this case we feel it is justified,” he explained. “We need to be absolutely convinced by the worth of the fund – and it has demonstrated its ability to generate alpha without using much market exposure. If an absolute return fund does need a lot of market exposure, you would be better off in a tracker.” Henderson UK Absolute Return has delivered a positive return in every calendar year since launch. The fund is £1.7bn in size and has ongoing charges of 1.06 per cent. The gold play NEWTON REAL RETURN BEN WILLIS, HEAD OF RESEARCH AT WHITECHURCH SECURITIES, says he has backed Newton Real Return for some time, a decision vindicated by its performance this year. “It has a preference for holding gold, which has allowed it to outperform,” he explained. The fund has made 8.94 per cent so far this year, the 10th best figure of the 105 funds in its sector, and has made a positive return in nine of the past 10 calendar years, losing just 0.75 per cent in 2011. It is £9.8bn in size, has ongoing charges of 1.11 per cent and does not charge a performance fee. The GARS alternative INVESCO PERPETUAL GLOBAL TARGETED RETURNS WILLIS ALSO LIKES INVESCO PERPETUAL GLOBAL TARGETED RETURNS. “In terms of strategy it is very similar to Standard Life Global Absolute Return Strategies [GARS]. However, its managers run 20 to 30 strategies and they have been able to navigate this low-yield environment much better than GARS,” he said. While the fund was only launched three years ago, it has done well from a total return point of view: its returns of 19.23 per cent over this time are more than double the gains of GARS and its sector. The fund is already £6.5bn in size and has ongoing charges of 0.87 per cent. It does not charge a performance fee. 22