New members are automatically placed into the ‘balanced’ investment profile unless they choose otherwise.
The ‘balanced’ investment profile is designed to provide:
– Medium risk
– Potential for long-term growth with some security
– Moves to lower risk investments approaching retirement
– Designed for members who prefer to take some risk but would also like some of their investments to be secure.
There are two main stages in the investment profiles. When joining the scheme, members with more than 15 years before their selected retirement age enter a growth phase, where contributions are invested in an equity based fund with the aim of maximising potential investment return for an appropriate level of risk. Members then enter a ‘glidepath’ phase where assets are switched into the Pre-Retirement Fund which has lower volatility. This phase starts 15 years before their selected retirement age.
For members who do not wish to select one of the three investment profiles, there are also eight self-select options. Members can choose from the scheme’s fund range themselves and for self-select options, the funds will not be automatically switched into lower risk funds approaching retirement but can be moved between the investment funds only at the member’s request.