Out of 44 funds in the Investment Management Association (IMA) Balanced Managed sector (fund of funds only) only one posted a negative return over one year to July 2, according to Morningstar. While the mean return of the sector was 13.39%, the CF Miton Strategic Portfolio returned a negative 0.37%.
Over three years no funds were in negative territory, but the difference between the worst performing fund, Miton Strategic, and the best, M&G Managed, was 42.92 percentage points. Over three years the 39 funds in the sector produced an average return of 49.06%.
The rankings have changed significantly since Fund Strategy last fully analysed the sector (January 22, 2007). The Marlborough Balanced fund has moved from being ranked seventh to first in the sector, while the Invesco Perpetual World Income fund has slipped the other way falling from first to eighth.
Formerly named Marlborough Balanced Growth, the £203m fund outdid the F&C Managed Balanced fund by just 19 basis points to claim top spot. Martin Grey’s Miton Strategic portfolio remains at the bottom of the sector, but his other fund, Miton Special Situations, has moved up the rankings. Ranked second bottom in January, it has moved up to 36th.
While Miton Special Situations sat close to the bottom over one year in January, at the same time it was the best performing portfolio over three years. Now the fund has slipped back to sixth in the sector, being replaced at the top by David Jane’s £869m M&G Balanced fund. The fettered fund of funds returned 63.96%, and climbed from being ranked third in the sector in January.