JPM Cautious Total Return

The fund has the flexibility to switch weightings between the key asset classes: cash, bonds, equities, and will only add risk when there is a clear opportunity to add value. Over the last 12 months it is up 6.5%, with little volatility, compared to the average of the Cautious Managed sector at -3.7%. The first objective of the fund is not to lose money - it does not guarantee this, but the evidence since launch (July 2005) is encouraging in this regard.  The manager believes that volatility across asset classes in recent times creates good opportunities to continue with positive returns in 2008. 

Though these types of funds are relatively new to UK investors, they have a decent track record of success in the US with esteemed institutions such as Harvard and Yale.  These low risk funds can represent up to 20% of your portfolio, though don't rely on only one fund for this exposure. 

To achieve over a medium - term horizon higher returns than those available from money market instruments denominated in Sterling by investing primarily in fixed income securities, convertible bonds, equity securities and short-term securities of issuers located in any country.