What performance attribute is associated with Conservative FoF?

The performance attribute associated with a Conservative Fund of Funds (FoF) typically involves a focus on risk management and achieving a stable return profile. A moderate Sharpe ratio of 0.3 suggests that the fund is designed to provide a balanced approach to risk and return, which is characteristic of a conservative investment strategy. This means that while the fund might not deliver extremely high returns, it aims for a level of return that adequately compensates for the risk taken, thus appealing to more risk-averse investors.

The other options do not reflect the typical attributes of a Conservative FoF. High mean returns with low volatility, for instance, would suggest a more aggressive or optimal portfolio, which is not aligned with a conservative approach. Similarly, being negatively correlated with global bonds would be contrary to the objective of a conservative investment strategy, which often seeks stability and low correlation with more volatile assets. Lastly, claiming that there is no downside risk is unrealistic in investment management, particularly in the context of a Conservative FoF, which may still experience negative returns, albeit to a lesser degree than more aggressive strategies. Therefore, the moderate Sharpe ratio accurately reflects a performance characteristic that balances desired returns with accepted risk levels.