Sunday, July 11, 2010

Absolute Return funds

‘Absolute Return’ funds
Mark King’s article in this week’s Guardian warns about absolute return funds, what is your opinion?.
Read the article and work through the exercises below discuss your answers with your teacher.

1 .Which one of the comments below correctly relates to this quote? “Investors should be … disappointed…”

o The market is too low
o This is a perfect time for these products
o The fund managers have been caught stealing money

2 .Which one of the comments below correctly relates to this quote? “The fund is for … long term investors …
o People should get out now, not in one month
o These funds will win over time.
o You have to be sophisticated to make money in this way

3. Match these expressions from the text with their explanations.

1. Tick along nicely
2. Stellar returns
3. Whopping
4. chickens come home to roost
5. the jury is still … out

a Very large
b Make moderately good progress
c Very high returns
d The decision has not been made yet.
e earlier actions come back to cause trouble for a person

4. Write an email to your stock broker asking him the following questions.

- Does he have any experience with these funds?
- Would he recommend that you invested in them?
- Which type of investment would he recommend for the short term (less than a year)?

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