Investors flee to absolute return and cash funds in April

Sales of absolute return and short-term money market funds jumped in April, according to the Investment Association, as investors adopted a more cautious approach.

With investors perhaps spooked by the prospect of a close result on May's general election, funds in the Targeted Absolute Return sector enjoyed their highest-ever net retail sales figure of £529m in April. The £258m worth of short-term money market fund sales was also a record and ranked the sector as the fourth most popular last month. The figures represent the first time since July 2008 that short-term money market funds have featured in the top five bestselling sectors. The sector saw sales of £55m in that month. March's most popular sector, Europe ex UK Equity, dropped to seco...