Asset Allocation commentary by Standard & Poor's.

Investment Adviser, December, 2006

The IMA Asset Allocation sectors remain consistently in the mid range of the performance league over the 12 months to 11 December and sector average returns are similarly modest over six months and three months to date.

The UK Equity & Bond Income sub-sector, free to invest between 20 per cent and 80 per cent in UK equities, fares best over the quarter with a sector average return of 5.59 per cent, beating returns to the FTSE100 index by 35 basis points.

Performance is weaker, though, over the longer term with sector average returns underperforming this index by 71 basis points over the six months to 11 December and 232 basis points over 12 months.

Managed fund sub-sectors suffer from their lower exposure to equities, but consistently produce...

Read the rest of this article with a Free Trial at HighBeam Research.

Premium Content Partnership | HighBeam Research provides an in-depth online archive library of reference works.