Why invest in the Cautious Managed sector?

CAUTIOUS MANAGED

Newton's Simon Nichols looks at the advantages the sector offers in uncertain economic times

The search for yield, which has effectively been manufactured by global monetary authorities’ cutting of cash interest rates to zero (or near zero), has forced risk-averse investors into more risky asset classes in pursuit of some element of return on their investments. For many investors this has encouraged a move into bonds, and those investors have been well rewarded as recent returns from both sovereign and corporate issues have been strong. The yield available on government bonds has fallen significantly as the prospects for US economic growth appear to have deteriorated and worr...