Cautious Managed is misleading, says Chelsea's McDermott

The Cautious Managed sector should be re-defined as its current label is misleading, according to Chelsea Financial Services' managing director Darius McDermott.

The sector has faced criticism in the past from the IFA industry and McDermott is urging the IMA to address the sector's definition as too many of the funds have not lived up to the "cautious" billing. "'Cautious Managed' should not be an opaque term. The sector needs to be re-defined as in a number of cases it is patently misleading investors. Cautious must mean cautious. "With continuing high levels of volatility likely in markets, capital protection remains vitally important to the investing public and we need to be crystal clear as to what constitutes a 'cautious' fund," says McDe...