M&G Cautious Multi Asset Fund returns 14.5%

Designed to allow investors to participate in rising asset markets while preserving capital as much as possible, the M&G Cautious Multi Asset Fund has delivered 14.5 per cent since it launched three years ago on 16 February 2007, an out-performance of 16.6 per cent relative to the average fund performance in the IMA Cautious Managed Sector.

David Jane, manager of the M&G Cautious Multi Asset Fund, says: "By being truly multi asset, the M&G Cautious Multi Asset Fund has invested beyond the limitations of traditional cautious managed funds.  An active asset allocation approach is always better but in turbulent markets has proven a big advantage.  This has enabled us to respond to the actual correlation of assets to preserve capital as markets have changed."

"My investment philosophy centres on risk and reward," he explains.  "Managing a multi asset fund is about understanding risks in markets in order to manage the downside at the same time as offering clients a return above cash and inflation."

David Jane has achieved this with relatively low volatility in the capital value of the fund over the long-term. The biggest loss an investor could have suffered - someone who bought at the fund's peak and sold at its lowest value - was 16.5 per cent. This compares with a maximum draw-down of 41 per cent from the FTSE All Share Index over the period and 23 per cent from the IMA Cautious Managed Sector.