Aegon UK has launched a stability fund aimed at preserving capital.
The firm said it has launched the fund because April’s pension freedoms mean many approaching retirement are likely to opt for drawdown.
Many such investors, Aegon said, will want to preserve existing savings and will not have the luxury of time to recover from investment losses.
Nick Dixon, investment director at Aegon said: “From April 2015, people will have a lot more control over how they manage their money in retirement.
“This fund will benefit those savers who want to preserve their hard-earned savings pot and are looking for a straightforward solution, conveniently packaged within one fund.
“We’ve carefully selected four quality funds for this portfolio which have complementary risk/return profiles, high levels of liquidity, and investment strategies which focus on minimising market losses.”
The fund will be available across all of its advised propositions with an annual TER of 0.87 per cent.
It holds an equal mix of four funds: Fulcrum Diversified Core Absolute Return, the Jupiter Strategic Reserve, Newton Global Dynamic Bond, and Kames UK Equity Absolute Return.
Mr Dixon said: “The diversification provided by blending these four managers reduces risk while offering the prospect of growth in excess of cash over the long term.
“We are confident that this blended approach will offer both reassurance and growth to savers wary of the downside risks of investing their retirement savings.”