The Apollo cautious fund returned 0.62 per cent in November while the IMA cautious sector average fell by 0.75 per cent. The balanced fund was up slightly by 0.04 per cent at the end of the month, while the IMA balanced sector average was down by 0.41 per cent over the same period.
Apollo says most European indices fell in November as a result of concerns about European sovereign debt and Ireland accepting the need for a bailout.
The firm says the diversity of its multi-asset approach means its funds had exposure to investments that are inversely correlated to falling equity markets.
Holdings in gold bullion and the BNP vol edge structured product in both Apollo funds rose by 5.37 per cent and 21.73 per cent respectively. In contrast, equity and bond holdings in the balanced fund such as Thames River real estate and the Old Mutual strategic bond fund were down, but the cautious fund benefited from positive returns from funds such as Neptune Japan, Jupiter absolute return and Odey UK absolute return.
Apollo partner and fund manager Steve Brann says: “The outlook for markets still remains extremely volatile, flipping between risk on and risk off. In such an environment we believe that investors should trust in a multi-asset approach, which is also allied to tactical dynamic asset allocation shifts.”