Your investment options
You can choose to use an Automatic Switching Strategy
The Plan operates 3 Automatic Switching Strategies. Each of the 3 strategies assumes that you will use the money in your Lifestyle Account in a particular way and that you will do so when you reach your 65th birthday.
The name of each strategy indicates the way in which you are expected to use the money in your Lifestyle Account.
- The Target Drawdown Strategy (Default Strategy)
- The Target Annuity Strategy
- The Target Cash Strategy
The Automatic Switching Strategies are usually most suited to those members who know how they intend to use their Lifestyle Account and when they wish to do so.
To find out more about how they work, please see section 'Automatic Switching Strategies' which is within your Investment Guide.
You can set your Target Retirement Age to something other than your 65th birthday and you can do so by completing the Target Retirement Age form.
You can invest on a self-select basis
If you would like to make your own investment choices, rather than follow one of the strategies, then you can choose to invest in any of the 10 funds in whatever proportion you choose.
The table below shows you the investment options you have within the Plan. The funds available may change in the future.
Please see the fund factsheets for further detail on each individual fund.
Investment Management Fees
The Early Growth Fund is designed to help members grow their retirement savings when they are far away from their Target Retirement Age.
The Core Growth Fund invests in a wider range of assets than the Early Growth Fund. It is designed to help members grow their retirement savings but with less risk than the Early Growth Fund.
The Consolidation Fund is designed to provide diversification for your savings with a lower risk profile. This is to provide greater protection against unfavourable market conditions as you approach retirement.
The Cash Fund invests in the Sterling Liquidity Fund (SLF) whose objective is to provide capital stability, liquidity and diversification while providing a competitive level of return.
The investment objective of the Fund is to closely match the risk and return characteristics of the MSCI World Custom ESG Climate Series A Index (the “Index”) with net dividends reinvested.
The investment objective of the Fund is to provide exposure to the FTSE All-Share Index whilst restricting the maximum weighting of any individual stock to 5%. All remaining UK stocks are included in proportion to their weightings in the FTSE All-Share Index. The Fund achieves its objectives by investing in the UK Core Equity Index Fund and Single Stock Equity Funds.
The investment objective of the Fund is to track the performance of the FTSE A Index-Linked (All Stocks) Index to within +/-0.25% p.a. for two years out of three.
The Fund aims to provide diversified exposure to assets that reflect the investments underlying a typical traditional level annuity product.
The investment objective of the Fund is to outperform the performance of the Bloomberg Barclays U.S. Aggregate (GBP Hedged) Index.
The investment objective of the Fund is to track the performance of the Markit iBoxx £ Non-Gilts (ex-BBB) Index to within +/-0.5% p.a. for two years out of three.
The aim of the Overseas Equity Fund is to invest in a wide range of company shares in Europe, North America, Japan, Pacific Basin and emerging markets to provide long term growth.
The investment objective of the Fund is to track the performance of the FTSE A Government (All Stocks) Index to within +/-0.25% p.a. for two years out of three.
* These funds are part of the default strategy
**A risk/reward rating of 1 represents the lowest level of risk but also the lowest likelihood of good long term returns. A risk/reward rating of 7 represents the highest level of risk but also the highest likelihood of good long term returns.
Please note Legal & General or the Trustee cannot provide financial advice. If you want help to make your own investment choices, you should speak to a financial adviser. You can find one in your local area at unbiased.co.uk. Financial advisers usually charge a fee for their services, but it will be personal to you and your circumstances.