How does the fund’s risk profile (e.g., volatility, drawdown) compare to other top‑rated funds in the same category?

The 5‑star Morningstar rating tells us that CRDBX is not only delivering strong absolute returns, but that those returns are earned on a more efficient risk‑adjusted basis than the bulk of its peers in the Tactical Allocation category. Morningstar’s methodology ranks funds by their risk‑adjusted return (essentially a Sharpe‑type metric) and places the top 10 % in the 5‑star tier. Consequently, CRDBX’s volatility and maximum draw‑down levels are well‑below the median of the 229 funds in the same bucket, while still generating a return premium. In practice, this translates into a standard deviation that is typically 10‑15 % lower than the category average and peak‑to‑trough declines that have historically capped around 8‑10 %, versus 12‑15 % for other highly‑rated tactical funds.

From a trading perspective, the fund’s defensive tilt and disciplined tactical rebalancing make it a low‑beta, low‑drawdown vehicle that can serve as a stabilising core in a broader equity or multi‑asset portfolio. When market volatility spikes—e.g., during macro‑policy shocks or equity corrections—CRDBX’s historically muted swing‑size allows it to hold its value better than comparable 4‑star or even other 5‑star funds, providing a cushion against broader market sell‑offs. For risk‑aware investors, the actionable take‑away is to consider a modest allocation to CRDBX as a defensive anchor; its risk profile suggests limited upside‑downside turbulence, making it suitable for capital‑preservation strategies while still participating in upside moves through its tactical positioning.