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Fund of the Week: AXA Framlington Managed Balanced
by Frank Talbot on May 31, 2012 at 10:03
After a brief respite, uncertainty has returned with Spain and Italy both receiving negative attention and prompting the sell off to continue.
However, there are parts of the investment world that have been enjoying a good year with government bonds in the US and UK, along with listed property in Asia and the US, all doing well. Combined with the equity strength of the United States, holdings in these areas would have balanced out all the difficulties of the past few months.
This all reinforces the notion of investing in broadly diversified portfolios and one of our best picks in mixed assets is the AXA Framlington Managed Balanced fund run by Richard Peirson. The track record of the fund is excellent and his high equity weighting of around 80% means that if the good times return then he will be there to take advantage, while at the same time the bond and cash position provides the insurance against the situation getting worse.
Peirson currently has around 40% in internationally focused companies here in the UK, a further 14% in the US and 12% in Europe. His bonds are predominantly UK-based and around half of his 8% weighting in gilts are index linked, providing protection against the risk of inflation rearing its head.
If you are looking for diversification then this is an aggressively positioned mixed asset fund that is well worth a look.
Our Citywire Selection picks are based on our totally impartial analysis of the funds and managers we believe have established the best track records, operate the best investment strategies and offer the best potential for investors.