Cautious Managed funds back in spotlight

Inflows into IMA Cautious Managed sector are returning as investors look to increase exposure to equities through lower-risk strategies

UK cautious managed funds have returned to favour over recent months, with notable inflows into sector the as investor appetite for increased equity exposure grows. While perceived as a safer investment strategy, funds can still be heavily exposed to a market decline, as managers can hold up to 60% in equities. The disparity in returns is wide. Over one year to 24 August, Ruffer Total Return achieved 21.2%, the best-performing fund, while EEA Octopus Cautious lost 16.4%, according to Morningstar. Less than a third of the 129 funds in the IMA Cautious Managed sector registered posit...