Diversity rules

Some leading cautious managed fund managers discuss just what it is that makes their strategies so different

The diversity of funds found within the IMA Cautious Managed sector is perhaps best reflected through the different ways fund groups interpret the sector guidelines. Under IMA rules, which were tightened last year amid fears of guideline breaches, funds in the sector should hold no more than 60% in equities and invest a minimum 30% in fixed interest and cash. Half of the portfolio must be held in sterling or euro-denominated investments. Although these parameters are more restrictive than those of the Balanced and Active Managed sectors, there remains huge scope for interpretation. Subs...