Investments  

Cautiously managed M&G fund outperforms its sector

“A combination of good management and the use of ITs has meant that the F&C fund has far outperformed M&G, and has done so taking lower risk. This is evidenced by the three-year sharp ratio of 1.19 for the F&C fund, compared with 0.09 for M&G.

“F&C’s historic volatility over the past three years is 9.2 against 10.28 for M&G. As well as the risk statistics, the F&C fund has far outperformed in absolute terms. Over the past three years, F&C was up 46.6 per cent against its benchmark of 31.9 per cent. M&G has increased 10.2 per cent against the same benchmark. Considering the greater risk taken, and the underperformance, investors in the M&G fund should switch to the F&C fund. In addition, investors get access to a broader selection of investments through the ITs.”

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