Fund of the week: cautious approach can pay off

Talib Sheikh's JPM Cautious Total Return fund is up 7.4% in the past 12 months against 0% for the average fund in the cautious managed sector.

"I'm not a great fan of cautious managed funds," says Brian Dennehy of independent financial advisor Dennehy Weller in The Sunday Telegraph. In good times, they struggle compared with decent equity funds, while in hard times they are supposed to be designed to beat cash. But up to this point "they seem to have failed with perhaps only one exception. The JPM Cautious Total Return fund". It's up 7.4% in the past 12 months, against 0% for the average fund in the cautious managed sector.

Designed to return cash, plus 3% after fees, the fund is currently overweight in bonds, with a 20% weighting in equities. Fund manager Talib Sheikh has a longer-term view, aiming to make money over three to five years. "We don't think this is the year you get paid for making big asset allocation calls with a six or 12-month view," he tells Financial Times Mandate.

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