F&C Investments is to add a fifth fund to its multi-asset, risk-targeted Lifestyle fund range, with the planned launch of the F&C MM Lifestyle Foundation Fund.
It will be the lowest risk profile fund in the range. The retail fund is planned to launch at the end of 2013, subject to regulatory approval.
The actively managed fund will aim to maximise investor returns within a pre-defined volatility band. It will employ a targeted strategic asset allocation approach determined by Distribution Technology, a risk profiling company, combined with risk-controlled tactical asset allocation of plus or minus five per cent in one asset class. The fund will undergo regular portfolio rebalancing with asset allocations reviewed each quarter.
Launched in 2007, and co-managed by Rob Burdett and Gary Potter, the F&C Lifestyle range was the first risk-targeted funds launched to UK investors. Each fund invests in a basket of 25 to 40 funds or instruments and the range has total combined assets of GBP435m.
John Yule, head of UK retail, F&C Investments, says: "F&C Investments prides itself in developing investment solutions that focus on our clients' changing investment needs, and our Lifestyle range has proven to be popular with advisers looking to maximise client outcomes. During a period of persistently low rates, this fund will aim to serve as a stepping stone for those looking for a first step investment as they move out of cash.
"F&C Investments fund managers Rob and Gary are two of the leading lights in risk-targeted investing, and the launch of this fund will be a strong complement to our existing range of funds, and reflects the growing demand we are seeing for multi-asset, risk-targeted solutions."