Trusts thrive in Specialist Sectors

The shortlisted FP Argonaut Absolute Return fund has certainly had no problems delivering on performance, having been the best-performing fund in this category across both one and three years to May 26, data from FE Analytics shows. It delivered a respectable 70.47 per cent across three years, beating the average return of 36.13 per cent from the funds in the 100 Club category.

It is also worth noting that three of the funds in this category are returning funds, with the Henderson UK Absolute Return, the Old Mutual Global Equity Absolute Return and the RWC US Absolute Alpha funds having maintained their 100 Club status for two consecutive years.

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Interestingly, absolute return funds were back in favour among UK investors, April sales figures from the Investment Association show.

Not only was Targeted Absolute Return the top-selling Investment Association sector in April, but its net retail sales of £529m were the highest on record since January 1992. It does indicate that UK investors are being overly cautious though, as evidenced by the fact that the Short Term Money Market was also in the top-five-selling sectors for the month.

Alternative and specialist sectors are still popular among investors, and the performance of the 100 Club members in these categories demonstrates why.

Ellie Duncan is deputy features editor at Investment Adviser