iFunds shifts all funds to absolute return sector


iFunds Asset Management has shifted its three multi-asset funds from the IA Flexible Investment sector to the Targeted Absolute Return sector and amended their objectives.

The funds, which were previously part of the Spectrum range, have been renamed to VT iFunds Absolute Return Orange, VT iFunds Absolute Return Green and VT iFunds Absolute Return Indigo.

The funds’ targeted returns are now Libor plus 6 per cent, 5 per cent and 3 per cent respectively over a three-year period before fees and charges.

The move has already been approved by the Investment Association.

iFunds uses a computer process to monitor prices in 30 asset classes across geographies using ETFs to gain exposure to assets showing the strongest momentum.

Stacey Ash, Director and Investment Manager at iFunds, believes the offering is unique for the Targeted Absolute Return sector.

“We don’t make calls based on global macroeconomic forecasts or use complex derivative techniques, we focus purely on the price action in asset classes around the world.”

“As far as we are aware, no-one else is using a purely momentum-driven approach in the sector and we believe advisers will recognise the value of these funds as a genuine portfolio diversifier within their absolute return allocation.”

The funds have also been converted from non-Ucits retail schemes (Nurs) to Ucits in an effort to widen their investor base.

Nurs schemes fall under the scope of the Alternative Investment Fund Managers Directive (AIFMD).