UK-based Forsyth Partners has increased its range of fund of funds to ten with the introduction of the Forsyth sterling global growth fund.
Designed with cautious investors and pension fund trustees in mind, the fund is a Dublin-based SICAV that will aim for long-term growth.
The fund will invest in a portfolio of between 12 and 15 funds and will benchmark the FTSE private investor growth portfolio index. The spread of investment will be 60 per cent UK equities, 25 per cent international equities, 10 per cent bonds and 5 per cent cash.
Some of the funds that the product will invest in will be the Polar Capital Japan, Jupiter European special situations, Pimco global bond, Mercury global bond, HSBC UK equity and Schroder US smaller companies.
The FTSE private investor growth portfolio index went from 2,951.08 points on July 16, 1998 to 2,953.48 points on July 16, 2001.
Tying a fund to an index can be risky over the short term as it makes it more susceptible to any volatility in the markets, with swings more visible in performance. But over the long term, the risk of volatility can diminish, as historically, indices have increased in value.
According to Standard & Poor's the Forsyth global equity fund is ranked 211 out of 492 funds, based on £1,000 invested on a bid-to-bid basis with gross income reinvested over one year to July 9, 2001.