Business
Absolute disaster! How UK’s most popular Isa fund went from £27bn hero to ZERO | Personal Finance | Finance
Yet that’s what exactly what the brains behind a new type of investment fund claimed in 2008, and investors and financial advisors threw money at them. But instead of making money, they wiped out huge sums.
The fund was known as the Standard Life Global Absolute Return Strategies, called GARS in the industry, and it grew to be the UK’s single biggest investment fund worth a staggering £27billion at its peak in May 2016.
It inspired a host of imitators, including Invesco Global Targeted Returns, launched in 2013 by three managers from the GARS fund.
Absolute return funds were aimed at cautious older investors, many of them pensioners, who wanted to beat the returns on cash while avoiding stock market volatility in the aftermath of the financial crisis.
Absolute return fund managers attempted to do this by holding a spread of asset classes with different risk profiles, such as shares, bonds and property.
They also adopted specialist trading strategies, such as shorting stocks (betting they will fall rather than rise) and using complex financial instruments such as derivatives.
Instead of giving investors the best of both worlds, they got the worst.
Absolute return funds became oversized, overcomplicated and oversold by credulous independent financial advisers.
I’ve been slagging them off for years.
Instead of making money in all types of market conditions, the only superpower GARS had been given was the ability to lose money, year after year.
In the six years after May 2016, it collapsed from £27billion to just £1.7billion, as investors fled for the exits to escape its dismal performance.
GARS struggled right to the end, falling 9.6 percent in 2022 and another 8.8 percent this year, before new owner fund manager Abrdn finally pulled the plug in July.
It’s one of the biggest disasters the fund management industry has inflicted on its customers, bearing comparison with the Neil Woodford debacle.
Absolute return fund managers got too big for their boots and promised things they couldn’t deliver. While IFAs swallowed everything they were told.
The industry has still made a heap of money in fees and charges. Private investors will have lost it.
Absolute return funds were designed to give uncorrelated, steady returns, something investors were crying out for after the financial crisis, says Darius McDermott, managing director of investment platform FundCalibre.
More than 100 funds were launched in total, but working out what they did was never easy, as each had different strategies and risk levels. “Some were equivalent to hedge funds while others borrowed heavily to invest, further piling on the risk,” McDermott said.
Instead of delivering steady returns some took too many risks and rocketed one year, then crashed the next.
Even when funds did rise high annual management charges of 1.25 percent or more eroded much of the gains.
Invesco Global Targeted Returns has also flopped, but unlike GARS is still limps on.
It aims to achieve a positive total return in all market conditions over a rolling three-year period, but over the last five years it has fallen an embarrassing 0.8 percent.
READ MORE: Inflation set to RISE in new blow for mortgage rates, house prices and tax cuts
McDermott said one or two funds can hold their heads up, notably the Artemis Target Return Bond and BlackRock European Absolute Alpha.
Yet over three years these funds have delivered a total return of 4.3 percent and 7.7 percent respectively, according to Trustnet, which is nothing to write home about.
John Moore, senior investment manager at wealth manager RBC Brewin Dolphin, said absolute return funds have lost their selling point now it is possible to get a decent return on cash again, with no outsize fees eating into returns.
Most absolute return funds have been an absolute failure.
Fund managers were once the superstars of the financial services industry, but have since crashed to earth.
It’s a staggering fact that three quarters of actively managed funds regularly fail to beat their benchmark over any period you care to name.
Three quarters!
They still collect their lucrative fees, though.
And even those who do beat their benchmark rarely repeat the trick. Mostly, it’s pot luck. The hugely popular Scottish Mortgage Investment Trust lost half its value last year and hasn’t recovered.
Most investors will fare better with a low-cost index tracking exchange traded fund (ETF), that passively follows share prices up and down rather than trying to beat them, and hold for a minimum five years and ideally longer.
To reduce risk, put some of your savings in a best buy savings account.
Fund managers don’t have superpowers, but some have wreaked massive wealth destruction worthy of a Hollywood supervillain.
Mumbai:
Stock market benchmark indices Sensex and Nifty rebounded sharply in morning trade on Wednesday after heavy drubbing in the previous session amid buying in blue-chip bank stocks and a firm trend in Asian peers.
The 30-share BSE benchmark gauge Sensex bounced back in early trade and later jumped 835.2 points or 1.02 per cent to 82,021.64. The NSE Nifty surged 262.3 points or 1.06 per cent to 24,946.20.
From the Sensex firms, Sun Pharma, Bajaj Finance, UltraTech Cement, Mahindra & Mahindra, Bajaj Finserv, Tech Mahindra, HDFC Bank and Tata Motors were the biggest gainers.
IndusInd Bank emerged as the only laggard.
Moody’s Ratings said on Wednesday, India is well-positioned to deal with the negative effects of US tariffs and global trade disruptions as domestic growth drivers and low dependence on exports anchor the economy.
In a note on India, the agency said government initiatives to boost private consumption, expand manufacturing capacity and increase infrastructure spending will help offset the weakening outlook for global demand.
In Asian markets, South Korea’s Kospi, Shanghai’s SSE Composite index and Hong Kong’s Hang Seng were trading in the positive territory while Japan’s Nikkei 225 index quoted lower.
US markets ended lower on Tuesday.
Global oil benchmark Brent crude jumped 1.62 per cent to USD 66.44 a barrel.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 10,016.10 crore on Tuesday, according to exchange data.
Retreating from early highs, the 30-share BSE Sensex tanked 872.98 points or 1.06 per cent to settle at 81,186.44 on Tuesday. The Nifty tumbled 261.55 points or 1.05 per cent to 24,683.90.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
Business
Piccadily Becomes The 1st Indian Alcobev Company To Adapt NFC Technology To Combat Counterfeiting
New Delhi, Delhi, India – Business Wire India
In a pioneering move to safeguard consumers and reinforce trust in premium Indian spirits, Piccadily Agro Industries Limited has become the first Indian alco-bev company to implement ForgeStop’s cutting-edge anti-counterfeit smart label technology for its acclaimed Indri Single Malt.
With counterfeiting rampant in India – where it’s said that more Scotch is consumed than Scotland even produces – Piccadily has taken a bold and proactive step. By integrating NFC-enabled smart labels into its packaging, the company is setting a new benchmark in authenticity and transparency, investing significantly to ensure consumers receive only genuine, original products, reinforcing trust in premium Indian spirits.
ForgeStop InfoTap Labels on Piccadily products utilize EM Microelectronic echo-V chips with 128bit AES encryption and dynamically changing tokens – giving them bank level security and making them virtually impossible to fake. They also feature tag-tamper detection – alerting a consumer if the bottle seal has ever been broken – this prevents bottle re-use, a major issue with Alcohol counterfeiting that is difficult to combat with other technologies. Its platform creates a unique digital twin of every product at the moment of production and secures the product until it’s enjoyed by the customer. The software allows for app-free authentication and provides batch level product information – making it the most user-friendly anti-counterfeit technology available. This technology can be connected to the blockchain generating an immutable product journey – securing supply chains.
Unlike static technologies such as QR codes or holograms, this NFC tap and verify experience allows customers to simply tap their smartphones to the bottle to instantly confirm its authenticity and view batch-level information.
“As a brand committed to authenticity and quality, we’re proud to be the first Indian single malt brand to take this bold step,” said Praveen Malviya, CEO (IMFL), Piccadily Agro Industries Limited. “Counterfeit alcohol is a serious issue in India and globally. With ForgeStop’s smart technology, our customers can enjoy Indri with the confidence that what’s in the bottle is exactly what we crafted.”
“We’re proud to partner with Piccadily Distilleries, a globally recognized brand leading the way in product integrity. With ForgeStop’s smart label technology, consumers can instantly verify authenticity and access product information with a simple tap-no app required. It’s a seamless blend of security and brand storytelling,” said Terry Katz, CEO of ForgeStop.
As per the TRACIT (Transnational Alliance to Combat Illicit Trade) September 2023 report on India, a significant share of alcohol sold in India is counterfeit-well above the global average-and the problem is escalating rapidly. Counterfeit alcohol not only harms brands but also poses serious risks to consumer health.
With this first-of-its-kind initiative, Piccadily is elevating the standards of transparency, safety, and innovation in the Indian spirits industry-paving the way for a more secure and connected future for whisky lovers.
*Source- Source (TRACIT Report on India)
Source (OECD Illicit Trade Report)
Stock Ticker: (PICCADIL | 530305 | INE546C01010)
About Piccadilly Agro Industries Limited (PAIL)
Piccadilly Agro Industries Limited (PAIL) is a publicly listed company on the Bombay Stock Exchange (BSE: PICAGRO). The company operates primarily in two strategic business segments: Distillery and Sugar. Its manufacturing facility is located in Indri, Haryana, covers 168 acres and is equipped with advanced technology for producing a diverse range of products, including Malt, Extra Neutral Alcohol (ENA), Ethanol, and White Crystal Sugar.
Piccadilly Agro Industries Limited has established itself as a key player in the alcoholic beverages industry, particularly renowned for its expertise in malt spirits. The company boasts a robust portfolio that includes premium expressions of Indri single malt whisky, blended malt whisky brands and Camikara, premium sugarcane juice aged rum.
In 2022, Piccadilly Agro Industries Limited made a significant mark with the launch of ‘Indri’ its flagship single malt whisky brand, aimed at catering to discerning consumers who appreciate quality and craftsmanship in spirits. By focusing on premiumization strategies and leveraging its technical capabilities, the company has successfully positioned itself as a leader in the Indian single malt whisky market by becoming the ‘fastest growing single malt whisky brand’ in 2024.
Website: www.piccadily.com
About ForgeStop
ForgeStop is a connected product technology company that helps brands deliver engaging, trusted product experiences while protecting against counterfeiting, supply chain fraud, and lost consumer trust. Its smart label platform enables interactive product experiences that protect brands and engage buyers.
Website: www.forgestop.com
Media Contact Details
Nazish Khan, Avian WE, [email protected], +91-9538385162
Abhishek Haryson, Avian WE, [email protected], +91-9891356547
Quick Reads
Summary is AI generated, newsroom reviewed.
Filing ITR is crucial for salaried employee, business owner and freelancer.
But do keep in mind the deadlines for various categories of taxpayers.
Filing your ITR on time saves you from late fees, interest, and scrutiny notices
New Delhi:
Filing your Income Tax Return (ITR) is an annual obligation for every eligible Indian taxpayer. It not only ensures compliance with the law but also facilitates access to various financial services like loans, visas and credit cards. An ITR is essentially a declaration of your income, deductions and taxes paid to the Income Tax Department of India. Whether you’re a salaried employee, a business owner, or a freelancer, timely ITR filing is crucial.
Who Needs To File An ITR?
Individuals or entities whose gross total income exceeds the basic exemption limit must file an ITR. For FY 2024-25 (AY 2025-26), the exemption limits under the new tax regime are as mentioned on the Income Tax Department’s website are:
- Rs 3 lakh for individuals
- Rs 3 lakh for senior citizens (60-79 years)
- Rs 5 lakh for super senior citizens (80 years and above)
In the Union Budget 2025-26, the government announced zero tax on income up to Rs 12 lakh. The zero tax will only be applicable to individuals opting for the new tax regime. However, you still need to file an income tax return (ITR), even if your taxable salary is less than Rs 12 lakh. Zero tax is payable due to a tax rebate available under Section 87A of the Income Tax Act, 1961.
ITR must be filed by an individual to claim the tax rebate under Section 87A.
Key ITR Filing Deadlines for FY 2024-25 (AY 2025-26)
| Category of taxpayer | Deadline |
| Individual Salaried Employees / Non-Audit Cases | July 31, 2025 This includes salaried individuals, freelancers, and professionals not subject to tax audit. |
| Businesses Requiring Audit | October 31, 2025 If your business turnover exceeds Rs 1 crore (or Rs 10 crore in certain digital transaction cases), a tax audit is mandatory. |
| Transfer Pricing Cases (International/Specified Domestic Transactions) | November 30, 2025 Applicable for entities involved in cross-border or specified domestic transactions requiring a transfer pricing report (Form 3CEB). |
| Belated or Revised Return | December 31, 2025 |
Filing your ITR on time saves you from late fees, interest, and scrutiny notices. With the Income Tax Department’s e-filing portal, the process has become simpler than ever. Keep your PAN, Aadhaar, bank statements, Form 16, and investment proofs ready to avoid last-minute hassle.
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