My fund choices

There is a range of investment fund choices available to you as a member of AVC Extra, falling into two categories – lifestyle strategies and investment funds. The options you select will very much depend upon how hands-on you want to be in managing your investments.

You will automatically be invested in the 'default' Lifestyle unless you have asked to invest in other options. Target Flexible Drawdown is the default option for AVC Extra members.

You should check your fund choices regularly to make sure that they're still right for you.

If you are investing in a Lifestyle strategy you should think about choosing your Target Retirement Age (TRA). This is the age you would like to retire, and it could be earlier or later than your Normal Retirement Age. As you get nearer to your TRA, your funds will automatically start moving from 'higher growth', riskier funds to more 'stable', lower risk funds.

Please remember you should review your TRA regularly in case your retirement plans change.

Lifestyle strategies 

If you don’t feel comfortable managing your own investments, you can opt for the ‘hands-off’ approach with a Lifestyle strategy, which will make the decisions on your behalf. Your holdings are automatically moved to the funds which are believed to be most appropriate for the length of time you have left until retirement.

As you get nearer to your Target Retirement Age, your investments move from funds which have higher growth potential but tend to be more risky, to more ‘stable’ funds which have a lower risk of losing value.

You can find factsheets for each Lifestyle strategy below.

Target Annuity

As you approach your TRA, your money is moved into funds which aim to maintain enough growth to protect the value of the annuity income you may wish to buy with your pension savings.

Target Flexible Drawdown

A greater proportion of your money is left invested in higher-risk funds when you reach your TRA. This means the money that you keep invested has the chance to keep growing and potentially last you longer in retirement.

Target Lump Sum

Most of your money is moved into funds with the aim of maintaining the value of your pension pot so it keeps pace with inflation.

Investment funds

If you want more of an active role in how your investments are managed, you can choose from the range of investment funds chosen by the Trustee. You can choose to invest in one fund or a combination of funds and Lifestyle strategies, depending on your personal preference.

You can find the fund factsheets for each investment fund below. 

Corporate Bond Fund

This fund predominantly invests in bonds issued by global companies rather than the UK government.

Deposit Fund

This fund invests in money-market funds and UK government treasury bills.

Global Equity Fund

Long Term Growth Fund

Socially Responsible Equity Fund

This fund invests in shares (equities) in companies from around the world with very strong environmental, social and governance ratings, and minimal controversies. It avoids industries like tobacco, weapons, alcohol and adult entertainment.

UK Government Fixed-Interest Bond Fund

This fund invests in UK government bonds which provide a fixed rate of interest.

UK Government Index-Linked Bond Fund

This fund invests in UK government bonds which provide a rate of interest linked to inflation.