Winterthur Life is introducing a range of defensive managed funds for pension and investment bond investors.
The funds will aim at cautious investors by offering lower volatility through a conservative split of around 67 per cent in bonds and 33 per cent in equities.
Asset allocation will initially be 26.5 per cent in UK equities, 6.5 per cent in international equities, 46 per cent in UK fixed interest, 6.9 per cent in global fixed interest, 6.2 per cent index-linked and 7.9 per cent in deposits.
The fund will become part of Winterthur's Elite range, which was launched in 1999 to cater for investors' differing attitudes to risk. Other managed funds in the range include the cautious, balanced and stockmarket funds.
Investment distribution manager Bernard Henshall says: “Defensively managed funds are very much in favour with investors because although they have a high bond allocation, they still offer exposure to equities. This fund has been put in place in response to this and demand from IFAs who are looking for investment providers to make asset allocation and fund selection decisions through fund of funds offerings.”