JPMorgan Asset Management has announced that the JPM Cautious Total Return Fund is seeing its best sales growth ever. According to the latest figures, the fund has doubled its assets under management from around £200 million in August 2007 to over £400 million today.

Although the IMA Cautious Managed sector as a whole has been popular with investors seeking to lower their exposure to equities in recent months, the JPM Cautious Total Return Fund has been one of the fastest growing funds in the sector, since its launch in July 2005, in terms of assets under management.

In addition, not only does the fund have the lowest volatility compared to the top 20 funds (in terms of assets under management) in its peer group, it has also delivered some of the best returns over the past year. The UCITs III fund had a positive return of 6.46 per cent over one year, to 1st May 2008.

The performance of the fund, which is managed by Neill Nuttall and Talib Sheikh, is due mainly to the macro, top-down investment approach of the managers and flexible asset allocation, which allows the managers to react to shifting market conditions and preserve capital. The fund does not only take asset class bets but also intra-country, stock specific and intra-bond bets. It will also take up sector and thematic positions within the portfolio.

Jasper Berens, head of UK retail sales at JPMorgan Asset Management says, ‘Understandably, in volatile markets, investors are looking to reduce their exposure to equities in their core holdings and are flocking to funds with low volatility. The JPM Cautious Total Return Fund has been a major beneficiary of this because of its ability to invest in a range of asset classes across the world that can help mitigate this volatility.

‘Furthermore, it is currently returning excellent growth above cash and many other funds that sit within its sector who cannot necessarily take advantage of the multi-asset approach. We are delighted that investors and advisers alike are seeing the benefits of this fund in what are clearly volatile and uncertain market conditions.’