Time for a little cautious optimism

Despite stretched balance sheets and shrinking dividends, advisers following a blended strategy should be able to pick winners for their investors and tempt them away from cash holdings

There are many different names for funds providing capital growth and income from a portfolio of equities and bonds; managed distribution funds, cautious managed funds and mixed funds ranking among the most popular. Regardless of the label however, current conditions seem to support mixed strategies. The problem facing advisers recommending the ever popular balanced managed fund sector is really one of choice, or rather the lack of it. The funds on offer seek to reflect the average pension fund asset allocation for investors with a very long time horizon, hence a marked emphasis on equit...