SWIP launches Diversified Assets Fund

Scottish Widows Investment Partnership has launched the SWIP Diversified Assets Fund to the UK retail investment market. The fund has been added to the SWIP range, one of the most comprehensive available to IFAs in the UK.

The fund aims to provide a return of cash plus 3.25% per annum. It will gain exposure to a broadly diversified portfolio of assets including; equities, bonds, cash, property and alternative assets.

Jointly managed by Jeff King, Head of Balanced Funds, and Ken Adams, Head of Global Strategy, the SWIP Diversified Assets Fund will also aim to deliver its target level of return with significantly less risk than traditional funds, which rely predominantly on equity investments to deliver long term growth.

Tony Maddock, Head of Retail Business at SWIP comments: “The SWIP Diversified Assets Fund will appeal to clients looking for an alternative to traditional cautious managed funds or with-profits. Advisers may use the fund as a complete client solution, offering a well diversified portfolio, or recommend the fund as a central element of an investment strategy, adding holdings in other specialist areas to meet individual requirements.

“The fund will give private investors access to specialist asset classes not normally available to them. By including these specialist asset classes, alongside more traditional investments, we are able to make the portfolio work harder for clients by delivering a greater return with less risk.”

The fund represents an evolution of the multi-asset concept. This type of fund reduces the over reliance on equities as a long-term growth generator. Each asset class has a job to do in achieving an attractive return above cash with relatively low risk, for example:

Equities: offer the potential for high returns in the long term.
Bonds: offer protection in times of financial distress.
Property: offers risk reducing diversification benefits and attractive long term returns.
Commodities: perform at a different time in the economic cycle than equities or bonds.
Absolute return funds: have the flexibility to provide positive returns regardless of market conditions.

The fund has a minimum investment of £1,000 and will be available on the main IFA platforms. Retail investors should contact their IFA to access the fund or visit unbiased.co.uk if they do not have an IFA.