Skandia says it was due to adviser demand for consistent returns with low volatility.
Managed by Mark Lyttleton and Nick Osborne, it has returned 10.15 per cent per annum compared to 4.18 per cent returned by the FTSE All Share.
It aims for long investing, synthetic short investing and pair trades, with the ability to move up to 100 per cent of the portfolio into cash if appropriate.
BlackRock head of UK retail Alex Hoctor-Duncan says: “BlackRock’s UK absolute alpha is a suitable core holding for anyone’s portfolio, particularly in today’s volatile environment. It is great that investors can now access the fund via Skandia’s successful fund platforms.”
Skandia head of investment marketing Graham Bentley says: “We have seen increasing demand for absolute return funds, in particular those that use the wider investment opportunities available to managers. The BlackRock fund was
the first UK equity based fund to adopt these powers and has a fantastic risk adjusted track record over the past three years. It is also relatively easy for investors to understand, unlike some other absolute return funds that have
more complicated and opaque structures.”