CF Arch cru Income heads both the one and three-year Cautious Managed performance tables (funds of funds only.) The £30m fund fared particularly well, in relative terms, over the shorter time-frame. According to data from Morningstar, the portfolio rose by more than 6% over the 12 months ending September 29 – the only fund of funds in its sector to generate a positive return.
The portfolio also displayed low volatility over the period, despite increased market turbulence. CF Arch cru Income achieved a volatility reading of just 0.3, compared with an average of 2.46 for the peer group. Its nearest competitor was Cazenove Multi-Manager Diversity, which showed volatility of 1.39. The £200m Cazenove fund fell in value by 3.64% – the third-best return in the sector.
Multi-Manager Diversity – which invests in equities, hedge funds, property, commodities and bonds – also produced strong relative performance over three years. The fund’s return of 16.18% takes second place behind the 17.98% achieved by Arch cru Income, and is well ahead of the sector average of just 1.2%.
The biggest fund of funds in the sector – John Chatfeild-Roberts’ £1.2 billion Jupiter Merlin Income Portfolio – also performed well over the longer time-frame. The fund returned 8.51%, taking sixth place in the table. Relative performance is weaker when measured over 12 months but above the sector average.
Cautious Managed funds of funds declined by an average of 11.17% over the past year, compared with falls of 19.51% and 14.73% for the Active Managed and Balanced Managed sectors respectively.