Over the past year to September 15, not one fund in the
Investment Management Association (IMA) Active Managed
sector (funds of funds only) produced a positive return,
according to Morningstar.
Of the 55 funds listed in the IMA sector, 47 have one-year track records. The average return of the 47 funds was a fall of 10.99%, almost twice that of the IMA Cautious Managed sector average, which declined by 6.46%.
Indeed, the best performer in the Active Managed sector was the 939m M&G Managed Growth fund, which fell by 2.66%. Over three years to September 15, the fund was again the best performer in the sector, according to Morningstar. It produced a return of 35.06%, compared with a sector average of 12.03%.
As at June 30, 2008, 90% of the fund was held in equities, with 10% in cash. The largest country weighting was America, with a 26% allocation. Britain was the second largest, at 22%.
All the underlying funds within the M&G Managed Growth portfolio are M&G funds. The largest holding is the M&G Global Basics fund, with a 35% allocation.
Meanwhile, the worst performing fund in the Active Managed sector over one year to September 15, was the 183m CF iimia Accelerated fund. It fell by 21.01%.