Cash instruments a safe haven for returns

The money markets sector has been a safe haven for investors over three years to the end of February, one of only three IMA sectors to see double-digit returns over the period. The 13.69% mean return for the sector compares well with equity markets and managed funds over the same timeframe. The conservative asset class shows little variability between funds, with three-year returns ranging between 11.17% and 16.8%. Kate Jones, manager of the Fixed Income portfolio at M&G, puts this relative uniformity down to the nature of the funds which, in essence, invest in debt linked to central b...