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CF Miton Special Situations holds up in bad times

CF Miton Special Situations was one of the few funds of its kind not to lose money in 2008
March 5, 2012

CF Miton Special Situations was one of only four funds that made a positive return in 2008, when equity markets plunged more than 30 per cent. The fund has made positive returns in each of the past five years.

187.74p

The fund aims for long-term returns above inflation over the course of a full investment cycle. And it certainly seems to be succeeding – its five-year cumulative figures show it is among the top 10 funds in its sector. It invests in a mixture of assets, including investment trusts, direct equities, exchange-traded funds (ETFs) and structured products. It has a core asset allocation, coupled with some higher-risk satellite assets to provide higher upside returns.

The fund is not constructed or managed against a specific index or benchmark. For example at present its managers have a large position in cash due to the uncertain economic outlook. The fund's managers take a fundamental and value-driven approach to portfolio allocation, dependent on the relevant attractions of the world equity, fixed-interest and currency markets. Current major holdings include gilts and a significant position in Japan via equities, bonds and currency.

Although CF Miton Special Situations is a multi-asset fund of which the underlying holdings include other funds, the total expense ratio (TER) is reasonable at 1.74 per cent.

The fund's lead manager, Martin Gray, has over 30 years' investment experience.

CF MITON SPECIAL SITUATIONS A Acc (GB00B031C923)

PRICE187.74pTRACKING ERROR11.1%*
IMA SECTORMixed Investment 40-85% SharesSHARPE RATIO0.6*
FUND TYPE Open-ended investment company1-YEAR PERFORMANCE2.79%
FUND SIZE£761m3-YEAR ANNUALISED PERFORMANCE6.47%
No OF HOLDINGS50-755-YEAR ANNUALISED PERFORMANCE5.44%
SET UP DATE30 Dec 97TOTAL EXPENSE RATIO1.74%*
MANAGER START DATE30 Dec 97 and 4 Jun 08YIELD0.00%
MINIMUM INVESTMENT£1,000MORE DETAILSwww.mamfundsplc.com
VOLATILITY4.9%*

Source: Morningstar, *MAM Funds.

Performance data as at 1 March 2012

Top five holdings as at 31 January 2012

GLG Japan CoreAlpha Prof Acc3.3
UK Gilt 4.25% 20273.2
Schroder Asian Bond2.8
Goldman Sachs Yen Reserve2.8
Thames River Global Bond Fund2.6

Asset AllocationPercentage
Managed cash36.2
Alternatives12
UK equities10.4
Global bonds8.1
Japanese equities7.2
Property6.8
UK fixed interest5.8
US equities4.3
Asian equities3.8
European equities2.00
Resources1.90
Zeros1.20
Emerging markets0.30