Threadneedle Pensions has introduced the Adventurous Pathway fund – a pension fund of funds. Its introduction means Threadneedle Pensions has 19 pension funds available. The fund can be included in an 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 – with at least 50 per cent invested in the UK. The funds cover a wide range of sectors and levels of risk, from cautiously managed funds to oil, pharmaceuticals and technology.
The fund is the most adventurous of Threadneedle's three pathway funds. 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 only equities.
By spreading the investment over a range of areas and investment sectors, this reduces the level of risk. 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.
According to Standard & Poor's, the Threadneedle Eagle Star adventurous managed fund is ranked 49th 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.