RBS shuts Volatility Controlled Managed funds after heavy losses

RBS has closed its Volatility Controlled Cautious Managed and Balanced Managed funds less than two years after launch, after both funds racked up heavy losses.

At the time of launch, RBS head of intermediary sales Zak de Mariveles said the two low-cost portfolios represented "a huge opportunity for RBS to take a lead in the market". But the Cautious Managed product lost 10.1% since its inception in January 2011, according to FE, compared with an average return of 5% for FE's Mixed Investment 20-60% Shares sector. The Balanced Managed fund lost 8% since launch compared with an average loss of 0.2% for specialist funds in the FE universe. The FTSE 100 was flat over the same period. Last January RBS said the funds would "target" the retail f...