The Pension 2 Cautious Managed Fund has a broad spread of assets, predominantly invested in equities and fixed interest securities. It is intended to be less volatile than the Managed Fund, with a higher percentage of the fund in lower volatility assets. The fund will use property and bonds to protect investors from the impact of significant falls in equity markets. Our investment team will continuously assess the prospects for specific markets and will vary the proportions held according to the opportunities identified. We may, in certain circumstances, use derivatives for asset allocation purposes.