7IM announces that its Pathbuilder multi-asset fund range has reached a major milestone of over £1bn in assets under management, having recently marked its fifth anniversary.
Launched in 2020, the Pathbuilder range was developed in response to growing adviser demand for low-cost, globally diversified portfolios aligned to clearly defined risk profiles. Five years on, the range has established itself as a compelling ‘passive’ solution combining cost efficiency with a thoughtful long-term approach to diversification.
Unlike traditional passive strategies that rely heavily on market-capitalisation weighting, Pathbuilder is built on 7IM’s Strategic Asset Allocation (SAA) framework. This approach allows for annual updates and selective adjustments to asset classes where appropriate, ensuring portfolios remain aligned with long-term investment horizons and avoid short-term tactical positioning.
Since launch, this philosophy has enabled the funds to keep pace with, or outperform, its peers, despite a period dominated by strong US equity performance. By taking a more balanced approach to diversification, including allocations to areas such as emerging market bonds, the range has delivered consistent returns without taking on excessive risk.
In 2024, 7IM enhanced the Pathbuilder range by introducing a medium-term ‘trend following’ strategy, accounting for up to 4% of each portfolio. This addition is designed to provide further diversification by capturing opportunities in both rising and falling markets, which can be helpful for the portfolio when other return seeking assets are not performing well.
Fund performance since launch
- Pathbuilder 1, the lowest-risk fund with £56.6m AUM, has delivered 21.08% growth since launch.[1] Launched 09/12/2020.
- Pathbuilder 2, the balanced fund with £286.7 AUM, has returned 39.81%, outperforming the IA 20–60% Shares sector by 10.97%. Launched 09/12/2020.
- Pathbuilder 3, with £310.6m AUM, has achieved 56.57% growth, outperforming the IA 40–85% Shares sector by 14.15%. Launched 09/12/2020.
- Pathbuilder 4, the highest-risk option and largest fund at £399.6m AUM, has returned 53.69% since launch and is approaching its five-year anniversary. 03/12/2021.
The funds maintain a low annual management charge of 0.22% and are available via the 7IM Platform and a wide range of adviser platforms.
“Reaching such a significant milestone reflects the strength and consistency of our investment approach. With continued volatility this year, it also reflects as a desire from planners for something different. Our investment approach has been truly tested and shows access to deeper diversification has never been more important.
“The Pathbuilder range is not focused solely on low cost but rather providing genuinely diversified portfolios guided by a strategic asset allocation that delivers for investors.
“Rather than relying on traditional alternatives, we have focused on incorporating systematic, trend-following strategies to access diversified sources of return. This disciplined, forward-looking approach has been central to helping us deliver outcomes for investors and achieve this important milestone.”
“The road is littered with funds that don’t reach scale, so it is important to celebrate this milestone, but we’re clear that this is just the beginning – we have big ambitions and a growing user-base that gives me tremendous conviction that these will be realised.”
Chris Justham, Chief Distribution Officer at 7IM
