Absolute return fund manager HFA Holdings has recorded net inflows of $535.41 million over the 2007/08 financial year at the same time as long only fund manager Perpetual announced that it had net outflows of $3.5 billion.
Increased volatility in financial markets has investors turning from traditional fund managers in favour of alternative investments which have a stronger focus on capital preservation. Recent analysis by Australian Fund Monitors found that, on average, absolute return funds lost 3.64 per cent over the first half of 2008, however the ASX fell 21.56 per cent and the S&P 500 was down 14.72 per cent.
HFA Holdings reported a 73 per cent increase in net profit after tax to $35.2 million for the year to June 2008. The result was largely due to its purchase of US-based Lighthouse Investment Partners which boosted management fee income although performance fees were down in line with market conditions.
