Five things your clients will call you about this week

IFAonline gives its breakdown of five things your clients may have read in the nationals. This week: Absolute return funds come under the microscope, there's mixed news on the High Street, and one paper tips wine as a possible money-spinner for consumers this year...

Half of absolute return funds fail to turn a profit

The Telegraph is damning in its analysis of the absolute return fund sector. Over half of the 65 funds lost money in 2011, with only eight making returns above inflation, it said. BlackRock's popular £1.3bn UK Absolute Alpha fund was one of the worst performers, losing 7% of its value in the past 12 months.

Lloyds to face US lawsuit over HBOS rescue

Any clients banking with Lloyds (in fact any taxpayer) may be interested in news the banking giant faces a potentially costly class action lawsuit in New York. Former chairman Sir Victor Blank and ex-chief executive Eric Daniels are named in the action, over the takeover of former rival HBOS at the height of the financial crisis. Shareholders claim they were not told about a deterioration in HBOS's finances and say directors had a "reckless disregard for truth".

Oil, gold and fine wine outstrip the FTSE

Fallen out of love with the FTSE? Try wine, says the Independent. Oil and gold also outstripped the index of the top 100 UK companies in 2011. Gary Boom, managing director at the Bordeaux Index, tips Lafite, Mouton Rothschild and Margaux to do well in 2012.

High Street losers to face ‘bleak' 2012

Even more retail casualties are likely in the next few months, according to the Guardian. As well as high-profile administration cases La Senza, Blacks and Barratts, Game, Thorntons, French Connection and Ocado all announced profit warnings in the last few weeks. John Lewis and Next, however, are both expected to report positive results this week.

Co-op freezes overdraft payments for three months

An overdraft freeze for Co-op customers is a welcome relief, the Mail says. Co-op's head of banking, Robin Taylor, said the offer was not designed to encourage new borrowing but to help those with debts to get their finances back in order. Northern Rock savers have been less lucky, however: they face a £5 monthly charge on current accounts.