Standard Life Investments, when reporting a 59% increase in investment sales figures on Tuesday, indicated that it expects demand for absolute-return funds to increase, Reuters reports.
But the chief executive officer of the firm, Keith Skeoch, said he doesn’t think the bull market is over, despite recent market volatility.
“At some point, investors will focus back not just on relative returns but on absolute returns. It’s a long-term trend, exacerbated by worries about a downturn,” he said. “We’ve been working on that for a while. I don’t think we’ve seen the end of the bull market. We’re seeing a correction, caused by turbulence in the financial sector. But our focus has in particular been on absolute return products.”
Skeoch also said his company plans to launch 130/30 funds.