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Hold or fold? F&C Multi Manager Distribution
by Daniel Grote on Oct 07, 2009 at 00:01
What Citywire says:
Dean Cheeseman has been turning around performance of this £274 million fund since taking over from Richard Philbin in May last year.
Over three years and five years the fund sits near the bottom of the IMA Cautious Managed sector, with respective returns of 3.9% and
-19.6% in August placing it 46/50 and 82/84.
Over one year, relative performance improves slightly with a loss of 8.8%, placing it 117 of 137 in the sector. But the three-month and one-month returns of 10.2% and 5.6% produce a bigger move up the sector, to 35/148 and 20/151.
Cheeseman has introduced more flexibility to the asset allocation rules. The previous neutral benchmark of 50% fixed interest, 30% equities and 20% property had hurt performance. He reduced the property allocation to just under 10%. A rule change also means the allocation for property can now be placed in alternative assets.
This has allowed him to take up positions in Gartmore European Absolute Return and in Barclays’ multi-asset absolute return retail fund Radar (research analysis driven absolute return strategy), which has boosted performance.
Cheeseman has also reduced the fund’s mid-cap bias. He removed AXA Framlington’s George Luckraft from the portfolio in early 2008, although he is now moving back in.
Performance suffered from exposure to corporate bond funds and too much subordinated debt. He sold out of Aegon’s Strategic Bond fund in March.
What the advisers say:
Investment Solutions Manager, Buckles
If ‘distribution’ implies that the fund will pay an attractive and growing yield, then Dean Cheeseman has achieved the aim. Annual pence distributions have been 2.25p, 2.72p, 2.94p and 3.00p in 2005 to 2008, from a relatively low unit price.
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- F&C Multi Manager Distribution 1 Acc
- Jupiter Merlin Income Portfolio Inc
- AEGON Strategic Bond Acc A
- Gartmore European Absolute Return Ret Acc