iFunds Asset Management has moved three of its funds from the Investment Association’s Flexible Investment sector to the Targeted Absolute Return peer group.
The funds have been renamed and their investment objectives amended, reflecting the shift. The £40.5 million Spectrum Orange, £6.3 million Green and £1 million Indigo funds have been rebadged VT iFunds Absolute Return Orange, Green and Indigo. They aim to deliver annualised returns of Libor plus 6%, 5% and 3%, respectively, before fees and charges over rolling three-year periods.
The funds have also been converted from Non-Ucits Retail Schemes (Nurs) to Ucits vehicles and the changes have been approved by both shareholders and the Investment Association.
The portfolios are run using an algorithm-driven approach, investing in ETFs based on price momentum after volatility
Stacey Ash (pictured), director and investment manager at iFunds, said: ‘We are bringing something different to 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. We identify the strongest trends and stick with them until they fade out or change direction.
‘It’s a straightforward, easily understood approach and the overall effect is to produce returns that have a low correlation to traditional assets classes and other funds in the Targeted Absolute Return sector.’
VT iFunds Absolute Return Orange has returned 21.6% over three years, compared to the IA Targeted Absolute Return sector average of 6%. The Green portfolio is up 18.2% over the same period, while Indigo returned 4.3%.