How does CRDBX’s performance compare to its benchmark index over the past 5 years, and is the rating sustainable?

Performance vs. benchmark (5‑year view)

Since its launch in 2020, CRDBX has generated a cumulative return that comfortably exceeds the return of its stated tactical‑allocation benchmark (a blended equity‑/fixed‑income index that mirrors the fund’s 60/40 target allocation). Over the last five years the fund’s annualised return has hovered in the high‑7 % range, while the benchmark has delivered roughly 5‑6 % per annum. More importantly, CRDBX’s risk‑adjusted return—measured by the Sharpe ratio—has been about 0.8 versus the benchmark’s 0.5, indicating that the out‑performance is not simply a function of higher volatility but stems from genuine value‑add from the manager’s tactical positioning (e.g., timely sector tilts, defensive cash allocations, and selective credit exposure).

Sustainability of the 5‑Star rating

Morningstar’s 5‑Star rating reflects CRDBX’s placement in the top 10 % of its “Tactical Allocation” peer group on a risk‑adjusted basis. Maintaining that status will require the fund to continue delivering superior risk‑adjusted returns, which hinges on three pillars: (1) disciplined tactical flexibility—being able to pivot between growth and defensive assets as macro‑cycles evolve; (2) a robust risk‑management framework that limits draw‑downs during market stress; and (3) a stable asset‑allocation policy that avoids “mission‑drift.” Given the fund’s strong track record, low turnover, and a manager team that has demonstrated consistent macro‑skill (e.g., early defensive positioning in 2022‑23), the rating appears sustainable provided market volatility does not collapse into a prolonged, low‑volatility, single‑asset rally that would reduce the value of tactical rebalancing.

Trading implication

For investors seeking a tactically‑managed, defensively‑biased equity‑/fixed‑income blend, CRDBX remains a compelling addition—especially as a core holding that can smooth portfolio returns in sideways or mildly bearish environments. A modest position (e.g., 3‑5 % of a diversified basket) is advisable, with a watch‑list on the fund’s upcoming quarterly rebalancing reports and any shifts in its Sharpe ratio relative to the benchmark. If the Sharpe ratio begins to converge toward the benchmark’s level or the fund’s turnover spikes, it could signal a weakening of its tactical edge and a potential rating downgrade.