5 Top Rated Defensive Funds with Big Cash Allocations

Funds with big cash stakes can lag behind their peers in stock market rallies, but can do wonders in a downturn

Emma Wall 4 March, 2015 | 3:32PM

The FTSE 100 may have reached an all-time high last week, but clever investors should have defensive funds in their portfolio so that they can make gains in both bull and bear markets.

Funds with big cash stakes can lag behind their peers in stock market rallies, but can do wonders in a downturn. As well as the defensive buffer cash provides, these cautious fund managers are often more selective about the equities they do hold.

Sebastian Lyon of Troy Asset Management runs the Gold Rated Personal Assets Trust (PNL), and has recently been selling off equities in favour of defensive holdings cash, gilts and gold.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
AXA Framlington Managed Balanced R Inc287.41 GBP-0.45
Investec Cautious Managed A Acc374.74 GBP-0.10
Janus Henderson Cautious Mgd A Acc245.72 GBP-0.80
Personal Assets Ord45,908.05 GBP1.34
Schroder MM Diversity A Acc1.04 GBP-0.85

About Author

Emma Wall  is former Senior International Editor for Morningstar

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