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Absolute return back in vogue as investors pile into UK equities

Absolute return back in vogue as investors pile into UK equities

Targeted absolute return funds found favour with retail investors in January claiming top spot as the IMA's best selling sector.

Investors continued to pile into UK equities, with £644 million woth of net retail sales in January, at the expense of Asia-focused funds, which saw outflows of £235 million.

Targeted absolute return funds attracted £343 million, attracting their highest flows since December 2009.

Retail fund sales doubled in January compared to a year earlier, up from £537 million to £1.1 billion. Global, North America and Asian equities all suffered outflows as negative sentiment around asset purchase tapering continued.

Fixed income funds saw outflows of £229 million, while IMA Corporate Bond proved the worst-selling sector with a £225 million outflow. Equities proved the best selling asset class for the tenth month in a row.

'Investors continued to favour equities, especially UK and European funds, while Targeted Absolute Return funds saw their highest sales since December 2009,' Daniel Godfrey, IMA chief executive (pictured), said.

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