Politics & Regulation

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

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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