How the funds are invested
Contributions are allocated by the Trustee to eight separate investment funds depending on the member’s age. This means that the member’s assets will be moved in a more gradual manner out of equities and into bonds and cash as they approach age 65:
Each fund is made up of units, and contributions are used to buy units in each fund. The unit price changes daily so the number of units that can be bought varies. The member’s account is credited with the number of units that the member and employers’ contributions buy.
When members are a long way from retirement, their account is invested mainly in shares and property. This is because, over long periods, these types of investments have historically provided good returns above inflation.
As the members approach retirement, their account is gradually moved into bonds issued by the Government and cash which deliver a fixed rate of interest. This is because the returns achieved by these funds more closely match the cost of providing a pension.
The table above shows how member’s accounts are invested. The percentages are guidelines as the Trustee can invest the overall assets of the fund differently to generate better returns for members.
Although the Trustee is ultimately responsible for how the fund is invested, it delegates the actual day to day investment of the fund's assets external specialist investment managers.
To see the fund performance Click here
To see the Scheme's Investment Managers Click here