We use your contributions to buy 'units' in our managed fund or cash fund – or a combination of both. The managed fund is a medium risk investment in UK and overseas equities (shares), bonds, and cash. This means that it is subject to fluctuations in the short term but its overall aim is to provide good capital growth over the medium long term.
The cash fund is lower risk because it doesn't invest in shares. Instead, we deposit money in the cash fund in banks or short-term money market vehicles. Because the cash fund holds its value, it is more suited to people about to retire.
We will automatically invest your contributions in the managed fund, unless the employee prefers us to split it between the two funds. We will then transfer 20% of the units into the cash fund for each of the five years leading up to retirement. Your employee can instruct us to change this at any time.
For more information on this or any other queries regarding our products, please contact us today.