Investors began to shun the so called ‘safe haven' of absolute return funds in September, with the sector's sales on Cofunds slowing significantly last month.
While the new sector accounted for 15% of all net sales on the platform in Q3, September sales were just 3.85%. Designed to bring returns in all market conditions, just three of the ten funds in the IMA Absolute Return sector are in positive territory over three months. Cofunds fund manager relationships director Russell Lancaster says poor recent performance and the negativity surrounding short-selling has no doubt “put off” investors. Mark Lyttleton’s BlackRock UK AbsoluteAlpha fund was once again the most popular vehicle on Cofunds last quarter, dominating about 60% of all absolute...
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