Balanced Managed funds move defensive on macro headwind

IMA's broad definition of Balanced Managed sector makes for widely varied performance, fuelling criticism of peer group

Top performing managers in the IMA Balanced Managed sector are heavily exposed to defensive assets including gold, cash and blue chip equities in anticipation of upcoming headwinds. Managers including Sebastian Lyon at Troy Asset Management and Martin Gray at MAM Funds remain bearish on the global economic outlook despite a sustained rally in equity markets around the world. Lyon, running the £1bn Troy Trojan fund, said he is bearish on the global economy, with 12% of the fund invested in gold to protect it against a pullback. Lyon is also sticking to the highly liquid and less vol...