A safe haven in a volatile market?

The Cautious Managed sector has benefited from the volatile market with inflows of £2bn in 2007, as investors sought a safer haven for their investments

The periods of volatility experienced in global equity markets over the past few months have reinforced the benefits absolute return funds can deliver in such market conditions. Since the end of October, UK equities have fallen almost 13% while the Cautious Managed sector has fallen by 5%. While investors in equities understand the potential for periods of such volatility, it is likely that some investors in funds within the Cautious Managed sector have been surprised by the negative impact the recent shocks have had on such 'cautious' investments. In some cases, the cause can be attribut...