Scottish Widows launches two new life and pension funds

Scottish Widows has added to its range of life and pension funds by launching its two new funds – the Diversified Assets Fund and the Dynamic Property Fund.

The two new funds add to the wide-ranging choice of 122 life and pension funds available across the Scottish Widows product offering.

The funds will appeal to investors who are looking to keep their investments diversified across different asset types, taking account of current market conditions.

Scottish Widows Diversified Assets fund

This fund invests in the traditional asset classes such as bonds, equities and property, but also offers investors access to alternative investments including commodities, absolute return funds and private equity.

A broader range of assets affords better diversification

A cash benchmark allows the manager to focus on delivering better returns over the longer term

The fund aims for a better risk return profile than a conventional managed fund

Alasdair Fraser, Head of Investment Services at Scottish Widows, says: “Given the recent uncertainty in the markets, we are delighted to be able to give our customers access to the Diversified Assets fund. The fund is an exciting new evolution of the traditional managed fund concept and could become the core part of a client’s portfolio upon which IFAs can build a tailored solution.”

The Scottish Widows Diversified Assets (life and Pension) fund is managed by Scottish Widows Investment Partnership’s (SWIP’s) Jeff King and Ken Adams. The fund invests 100% into the SWIP Diversified Assets Fund. This is a UK based Unit Trust, managed by SWIP, launched in December 2006.

Scottish Widows Dynamic Property fund

This new fund complements Scottish Widows’ wide range of property funds, which now include both bricks and mortar and REITs funds across all major geographic regions.

Designed to offer attractive total returns from both income and capital appreciation, the Dynamic Property fund seeks to bridge the divide between direct property investment and the global REITs market, combining the advantages of the two types of property vehicles. The fund manager has significant flexibility to change the asset mix of the fund according to the prevailing market conditions.

Active management of property asset allocations, including the split of direct/indirect property and exposure to different geographic regions

Diversification benefits from low correlation, over the short term, between direct and indirect property and geographic regions

All property requirements in one fund

Alasdair Fraser, comments: “We believe that property continues to be an important part of a properly balanced investment portfolio. The Dynamic Property fund offers our customers exposure to a diversified property fund managed by SWIP, whose strong and talented property team have an average of over 15 years industry experience.”

The Scottish Widows Dynamic Property (life and Pension) fund is managed by Scottish Widows Investment Partnership’s (SWIP’s) Nigel Bolton and Gerry Ferguson.