Absolute Return continued to grow in popularity as the third highest selling sector in August, according to the latest sales trends from Cofunds, the leading independent platform for financial planning.
Absolute Return accounted for 7 percent of net sales and 5 percent of gross sales in August, with Standard Life Investment Global Absolute Return Strategy fund leading the way as the top selling fund on the platform for both net and gross sales (as can be seen by the table below).
|August 2010 Net Sales|
|1||Standard Life Investments Global Absolute Return Strategy|
|2||Thames River Distribution|
|3||Henderson Multi-Manager Income & Growth|
|4||Henderson Multi-Manager Distribution|
|5||Jupiter Merlin Income Portfolio|
|6||Invesco Perpetual Monthly Income|
|7||Aviva Cautious Fund of Funds|
|8||M&G Strategic Corporate Bond|
|9||M&G Optimal Income|
|11||M&G Corporate Bond|
|12||Newton Global Higher Income|
|13||Invesco Perpetual Distribution|
|14||Aberdeen Emerging Markets|
|15||Legal & General Dynamic Bond|
|16||M&G Property Portfolio|
|17||First State Asia Pacific Leaders|
|18||SWIP Multi-Manager Diversity|
|19||Invesco Perpetual Corporate Bond|
|20||CF Miton Special Situations Portfolio|
Cautious Managed continued to hold the top spot with 30 percent of net sales, followed by Strategic Bonds which maintained its position as the second highest selling sector for the seventh month, with 10 percent of net sales.
Corporate Bonds also enjoyed a successful month and regained some of its former glory accounting for 7 percent of net sales, whereas its year to date average is just 1 percent of net sales.
Michelle Woodburn, Manager, Fund Group Relations at Cofunds said: “Absolute Return has seen a gradual organic increase in advisers’ favour with steady growth indicating that this is not a bubble of popularity. As one of the newer sectors, Absolute Return does not have the legacy of assets to lose which some other sectors do, so maintains impressive net as well as gross sales. Meanwhile Cautious Managed maintained its place at the top, due in part to the RDR compliant nature of multi-manager funds that dominate the sector as an outsourcing solution to asset allocation.
“August saw a change in fortunes for Corporate Bonds as they overtook Strategic Bonds in gross sales (new business) terms. That Corporate Bonds have increased their net sales to 7 percent indicates that redemptions have been falling, as assets that advisers wanted to move elsewhere have already been moved and allocation to Corporate Bonds has reached a stable level.”