L&G PMC Investment Pathway Option 1 Invest BG25
Making changes to your investment pathway
Some or all of your pension is invested in the L&G PMC Investment Pathway Option 1 Invest BG25.
On 25 November, we’ll be making changes to the way this investment pathway option is invested. This guide is here to provide you with information on:
- Why we're making this change
- What you need to know
- Details on the changes
- Transaction costs
- Actions you need to take
- Financial advice
Quick links
Why are we making this change?
We review our investment pathways each year.
We believe this change will help the pathway to keep meeting its aim, whilst continuing to offer value for money.
What do you need to know?
The changes to this investment pathway will take place on 25 November 2026.
To make this change, we need to buy and sell funds. If fund prices are moving up and down a lot when the change is due to happen, we may delay it for up to 30 days. If we need to delay it for longer than 30 days, we'll write to let you know
We have updated the investment pathway’s aim to correspond with the new allocations.
Old aim | New aim |
|---|---|
The fund aims to provide an appropriate investment solution for those who have no plans to touch their money in the next five years. It aims for longer term investment growth through exposure to a diversified range of asset classes. Underlying investments may change from time to time. | The fund aims to provide an appropriate investment solution for those who have no plans to touch their money in the next five years. It aims for longer term investment growth through exposure to a diversified range of asset classes. The fund seeks to reflect significant environmental, social and corporate governance (ESG) issues in its investment strategy. Underlying investments may change from time to time. |
We're also changing the benchmark used for your investment option. A benchmark is a way of measuring how an investment option is performing. It is a point of comparison only, and it doesn’t affect your pension savings.
We're updating the investment pathway's benchmark so it better reflects the investments now held in the investment pathway.
Old Benchmark | New Benchmark |
|---|---|
ABI Mixed Investment 40-85% Shares | ABI UK Mixed Investment 40%-85% Pension Sector |
Transaction costs
There are transactions costs involved with making any investment pathway changes. We estimate that this may be up to 0.21% of the value of your savings or £2.10 for every £1,000.
Transaction costs aren’t extra costs from Legal & General. They’re costs that anyone switching funds must pay every time they buy and sell units. The cost can change daily and is included in the unit prices used to calculate the value of your pension plan. We’ve considered these costs as part of the decision-making process to enhance the L&G PMC Investment Pathway Option 1.
For more information on transaction costs please go to legalandgeneral.com/transactioncosts.
What do you need to do?
You do not need to do anything if you’re happy with this change. You can stay in this pathway and we’ll automatically make these changes on 25 November 2026.
If your plans for taking money from your pension have changed, you may want to review whether this investment pathway is still right for you.
If you want to choose a different option that better suits your plans, please do so before 20 November 2026.
To choose a different option you can:
- Use the L&G app
- Log into your online account
- Contact us by email or on 0345 070 8686
Fund Specific Risks
1, 2, 3, 5, 6a, 10, 15, 22, 36, 37 and 62
Each number relates to a risk associated with this fund, and this section contains descriptions of those risks.
There are some numbers missing from this list. Although L&G applies these risks to a range of funds, only the risks that might apply to this fund are shown in this list.
The fund invests in equities (shares of companies), so there is a higher risk of the fund’s value being volatile (i.e. going up and down) than with a fund which invests in most other asset types, particularly in the short term.
Investment returns on fixed interest securities, such as corporate and government bonds, are particularly sensitive to trends in interest rate movements and inflation. Their values are likely to fall when interest rates rise. Such falls may be more pronounced in a low, or negative interest rate environment and longer dated fixed interest securities will fall by more than short dated fixed interest securities.
The fund invests in fixed interest securities. The financial strength of a company or government issuing the security determines their ability to make some or all of the payments due. If this financial strength weakens, the chances of them not making payments increases and this will reduce the fund’s value.
The fund may hold assets in currencies that are not denominated in sterling. If the value of these currencies falls compared to sterling this may cause the fund’s value to go down. Some funds may employ currency hedging as a means of protecting the fund’s value against currency movements. In extreme market conditions, the hedge may not be perfect, and the fund may be exposed to currency changes.
The fund may undertake derivative transactions as part of efficient portfolio management (“EPM”) or reduction in investment risk in line with the Historic FCA Permitted Links rules.
The fund invests in emerging markets where there may be limited information available publicly to investors. In general, emerging market issuers are not subject to accounting, auditing and financial standards and requirements similar to those required of developed market issuers. Also, local laws may prevent the repatriation of capital or profit from those countries into the UK.
In addition, the stock markets and currencies of emerging markets can be volatile, due to the fact that the political and economic systems in these countries are still developing. In such cases delays in settlement may cause the fund to have exposure to a third-party broker or counterparty. This may result in a greater risk that the value of the fund might go down. The investments in these markets might also be bought and sold infrequently therefore resulting in large changes in their prices.
The investment policy applied to this fund may mean that it cannot invest in some companies or in certain sectors. These restrictions mean that, should the sectors in which the fund cannot invest be the best performing ones the value of the fund will not increase as strongly as the value of funds which can invest in these sectors.
The fund manager may lend stock to other parties, and it is usual for the borrower to provide collateral. If the borrower fails to return the borrowed stock, the collateral may not be enough to cover the value of the stock, resulting in a reduction in the fund value.
L&G have made a commitment to address climate change by engaging directly with the largest companies in the world who hold the key to meeting the 2-degree Paris climate change target (COP 21). The companies will be assessed by L&G Asset Management's for robustness of their strategies, governance & transparency.
Within this fund’s investment policy, companies that fail to meet L&G Asset Management's minimum standards in low carbon transition and corporate governance standards may be excluded from the fund.
The fund uses an investment strategy which is not benchmarked against a traditional market capitalisation index. Alternative indices may have features such as greater turnover and higher weighting to less liquid stocks than a traditional index. Consequently, the dealing costs associated with the turnover of securities within the fund may be high and impact the performance of the fund against the index.
This fund is able to delay paying out, which may mean that you have to wait to get your money. A delay may happen when market conditions mean it is difficult for the fund manager to cash in investments to pay out to investors. For example, a fund with investments in commercial properties may find they may take time to sell. Whilst waiting to complete on the sale of properties, the fund manager may suspend making payments to investors who want to cash in.
The fund can only delay paying out if it is in the interests of all investors.
Financial advice
Making choices about your pension isn’t always easy. You might want to speak with a financial adviser.
You can find one at unbiased.co.uk. Check that they’re regulated by the Financial Conduct Authority. Financial advisers usually charge for their services.
Please note that this site is to provide you with further information regarding this investment change – we are not providing you with financial advice.
Legal & General (Portfolio Management Services) Limited
Registered in England and Wales No. 2457525
We are authorised and regulated by the Financial Conduct Authority.
Legal & General Assurance Society Limited
Registered in England and Wales No. 166055
We are authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
Registered office for both companies: One Coleman Street, London EC2R 5AA
Trust-Based Occupational Pension Schemes are authorised and regulated by The Pensions Regulator.
Administrator: Legal and General Assurance Society Limited. Registered in England and Wales No. 00166055.
Registered office: One Coleman Street, London EC2R 5AA.
Legal and General Assurance Society are authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. However, the administration of occupational pension schemes is not regulated by the FCA or PRA.
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