Cautious Managed sector funds bounce back from difficult 2008

All but one of 142 funds in resurgent IMA peer group register positive returns over one year to 19 February.

Last year, UK cautious managed funds bounced back strongly from a difficult 2008 as investors’ appetite for increased equity exposure grew. While perceived as a safer investment strategy, cautious managed funds can still be heavily exposed to a market decline, as managers can hold up to 60% in equities. All but one of the 142 funds in the IMA Cautious Managed sector registered positive returns over one year to 19 February, according to Morningstar. Over 12 months, the top three funds in the sector have all returned more than 32%. New Star’s £298.57m Managed Distribution fund – join...