Threadneedle Pensions has introduced the adventurous pathway fund.
Adventurous pathway is a pension fund of funds. Its introduction brings the number of pension funds available from Threadneedle Pensions to a total of 19. The fund can be included in a Threadneedle Pensions occupational, personal or stakeholder pension scheme.
Aimed at the adventurous investor, the fund will invest in other Threadneedle Pensions funds that cover a wide geographical area. These include the UK, the USA, Europe, Japan, the Pacific rim and Latin America, with at least 50 per cent invested in the UK. The funds will also cover a wide range of sectors and levels of risk, from cautiously managed funds to oil, pharmaceuticals and technology.
The fund is one of three pathway funds that have been introduced by Threadneedle Pensions, and is the most adventurous of the three. The other two combine different levels of equities and bonds. Cautious pathway contains 50 per cent bonds and 50 per cent equities, and balanced pathway contains 70 per cent equities and 30 per cent bonds. Adventurous pathway contains no bonds, just equities.
By spreading the investment over a wide range of areas and investment sectors, this reduces the level of risk, and this will be popular, especially due to the current level of market volatility. However many investors could be put off by the lack of external fund links which makes the fund choice limited.
According to Standard & Poors the Threadneedle Eagle Star adventurous managed fund is ranked 49 out of 90 funds, based on £1,000 invested on a bid to bid basis with net income reinvested over one year to April 2, 2001.