Decline of with-profits boosts the Cautious Managed sector

The bear market of 2003 and the decline of with-profits vehicles has led to the Cautious Managed sec...

The bear market of 2003 and the decline of with-profits vehicles has led to the Cautious Managed sector growing from just 22 funds five years ago to the 64 offerings it consists of today. There have been 22 fund launches over the past three years alone, according to data from Standard & Poor’s, 12 of which were from the beginning of 2005. However, intermediaries and fund of fund managers dispute that this raft of cautious vehicles came out purely in response to the end of the long-running bear market, feeling they were more due to investors’ quest for diversified, low-risk portfolios. Cra...