Investors flock to Absolute Return funds as uncertainty takes hold

The Targeted Absolute Return retook its place as the UK's best-selling sector in June as investors sought reassurance in choppier markets.

Targeted Absolute Return funds saw net retail sales of £445m in June, according to the latest Investment Association figures, making the sector the most popular by net retail sales for the period. The sector first rose to the top of the sales rankings in April, a move many attributed to pre-election uncertainty, but remained in second place last month before taking the top spot again in June. Mixed asset funds were also popular, net sales of £404m representing the highest such level since last summer. But the impact of rising bond yields and speculation of rate hikes hit fixed inco...