Cautious managed funds weather storm

only two funds in the peer group have produced positive returns over three years: the eagle star and investec cautious managed funds

Funds in the cautious managed sector have proved better able to smooth returns to investors than other managed strategies over the past three years. Widely touted as potential with-profits replacement vehicles, the higher fixed interest quotient of cautious managed, compared with active and balanced managed funds, has facilitated the sector's superior capital preservation record. However, while cautious managed vehicles are necessarily required to hold 40% in fixed interest to meet the sector's requirements, the ravages of a three-year equity bear market are still evident in most funds'...