5.4% uplift in gross sales of absolute return funds

A study by independent research company Defaqto has found that absolute return funds continue to be a popular option for investors, with a surge of sales over the past two years. 

Absolute return funds accounted for 7.1% of gross sales of funds in the UK in April 2010, which is a considerable jump from 2.7% in April 2009 and just 1.7% in April 2008.

Fraser Donaldson, author of the guide and Defaqto's Insight Analyst for Funds, said: "Absolute return funds have been thought of as a very useful investment tool in times of economic uncertainty and market volatility, and as such it is no surprise that interest in these funds has grown considerably since the credit crunch in 2008."

Mr Donaldson continued: "More unusually, these funds have continued to be popular even through the market recovery in 2009. According to the Investment Management Association, over 7% of gross sales in April 2010 were into funds in the absolute returns sector. This indicates that they are now been seen as a ‘fund for all seasons', and are being used as core funds for many investors."