A cheaper way to diversify

Targeted Absolute Return Funds aren’t all awful, says Merryn Somerset Webb. But you'd think there'd be a cheaper way to diversify. Happily, there is.

How is the UK investing at the moment? Not, it seems, with great enthusiasm. We invested a net total of £1.6bn in April, says the Investment Association. That's not much more than half the amount invested in April last year. It doesn't suggest much confidence.

Run your eye down the list of the best-selling funds and you won't see much conviction there either. The best sellers are Targeted Absolute Return Funds (which pulled in a record £529m in April). This all makes sense. The huge rises in stockmarkets in the last few years, combined with a now-very-obvious bond bubble, are making everyone nervous (us included).

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Merryn Somerset Webb

Merryn Somerset Webb started her career in Tokyo at public broadcaster NHK before becoming a Japanese equity broker at what was then Warburgs. She went on to work at SBC and UBS without moving from her desk in Kamiyacho (it was the age of mergers).

After five years in Japan she returned to work in the UK at Paribas. This soon became BNP Paribas. Again, no desk move was required. On leaving the City, Merryn helped The Week magazine with its City pages before becoming the launch editor of MoneyWeek in 2000 and taking on columns first in the Sunday Times and then in 2009 in the Financial Times

Twenty years on, MoneyWeek is the best-selling financial magazine in the UK. Merryn was its Editor in Chief until 2022. She is now a senior columnist at Bloomberg and host of the Merryn Talks Money podcast -  but still writes for Moneyweek monthly. 

Merryn is also is a non executive director of two investment trusts – BlackRock Throgmorton, and the Murray Income Investment Trust.