Politics & Regulation

IFIA: CEO roundtable – more genuine alpha products need to be developed


More investment products need to be developed that actually achieve an absolute return, according to Jeffrey Sargent from bond specialist asset manager Pimco.

The executive vice-president Pimco Europe told the Irish Funds Industry Association earlier this week during  a CEO roundtable that, prior to the financial crisis, much of the product available had been traditional benchmark-based investments – where asset managers would try to produce alpha in excess of whatever the benchmark was.

He said: “Unfortunately, over an extended period of time, not only [did] benchmarks produce negative returns but often the alpha component [of the fund] was also producing