We use contributions from you and your employer 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 all your money in the managed fund, unless you prefer us to split it between the two funds. We will then transfer a percentage of the units into a cash fund in the 4-5 years leading up to your retirement. For those joining after 06/04/2005, we will transfer 20% of your units into the cash fund for each of the five years leading up to your retirement. For those joining prior to 06/04/2005, we will transfer 20% of your units into the cash fund for each of the four years leading up to your retirement. You can instruct us to change this at any time.
Details of unit prices are available for each of the funds separately. You can find unit prices for the Managed Fund here and for the Cash Fund here.
For more information on this or any other queries regarding our products, please contact us today.