Investors shelter from volatility

Cash-plus and multi-asset funds see growth in demand as investors attempt to avoid equity market volatility

Investors are taking shelter from the spike in equity market volatility in cash-plus and multi-asset funds. JPMorgan's Cautious Total Return was its second-biggest seller in the fourth quarter of 2007, taking in £10m a week, according to the group. Another cash-plus offering, Insight's Diversified Target Return (DTR), has more than doubled in size since June 2007 to £236m. At the same time, Midas's multi-asset Income and Growth vehicles have featured among the top sellers via Cofunds and FundsNetwork platforms. The dramatic increase in appetite for funds with absolute benchmarks has...