Asset Class Insight – Absolute Return Funds

In this article, the first of the series, we begin by introducing the concept of Asset Allocation from an investor’s perspective, explaining the importance of diversification and the dangers of putting all one’s eggs in a small number of baskets.

After explaining this important concept, we will then investigate our first asset class, providing an overview of the Absolute Returns sector.

By the end of our series of articles, we will hope to have given you an insight into the key building blocks that form the Fiducia portfolios.

What is Asset Allocation?

Investors of all levels will no doubt be familiar with the basic premise that it is dangerous to “put all your eggs in one basket”.

Although a fairly obvious piece of advice, this wise principle forms the backbone of professional portfolio management.

The dangers of being overexposed to one basket.

By carefully spreading risk and investing in a large number of unrelated financials assets, the investor benefits by min