Port scene

Investments

Paying more into your pension account is not the only way of helping it grow. How you choose to invest your contributions is also important.

The contributions you and Lloyd’s Register make to your account are invested with the hope that these investments will perform well and your account will grow in value. The better your investments perform, the more benefits you will receive in retirement.

Take a look at your annual benefit statement to see how your savings have performed over the year, how you’re DC Fund is currently invested, and what the value of your DC Fund might be at your Normal or Selected Retirement Age.

To change your self-select funds, go to the Standard Life member dashboard via Lifelens. You can access Lifelens from Connect on your work computer. Neither Standard Life nor Group Pensions can give you financial advice about your investments. To find a financial adviser in your area visit unbiased.co.uk

Investments and risk

There is always an element of risk involved with investments. It is important to consider the level of risk you are comfortable with taking.

You may find that your attitude to risk will vary depending on your circumstances, including how far away you are from retirement.

Try using this handy Risk questionnaire if you’re not sure what your attitude to investment risk might be.

Investment options

Depending on your attitude to risk and your confidence with investment funds, you can choose to have your contributions invested on your behalf, or you can make those decisions yourself.

The Flexible Retirement Strategy

If you need support with your investment choices, then it may be worth thinking about investing your pension account in the Flexible Retirement Strategy (the default). This is an investment strategy set by the Trustee. With this option, the only decision you need to make is when you would like to retire, as the strategy invests your pension account in different investment funds as you get closer to your selected retirement date.

Generally, your pension account is invested in growth funds while you are a long way from retirement. Growth funds aim to maximize the value of your pension account. As you get closer to retirement, your pension account is gradually moved into protection funds to safeguard your pension account from falling in value.

This default option is intended to meet the needs of a member who has a balanced view of risk and reward. This might be you if accept that there is a need to grow your savings but are concerned about investing all of your savings in the stock market. The Flexible Retirement Strategy gradually switches your investments over a period of 20 years, slowly introducing a fund which provides diversification across a wide range of different investments, while still aiming to grow your savings.

As this gradual switch takes place automatically, it is important to update Standard Life if you decide to change your selected retirement date. If you don’t choose a retirement date, this will be set at age 65 (the normal retirement date in the DC Section).

You can find out more about the Flexible Retirement Strategy in the Standard Life Investment Guide.

Self selection

If you’re happy to make your own investment choices, you can choose the self-select option. With self-select you can choose from a range of funds offered by Standard Life and there are a number of different investments on offer.

If you choose this option, it is essential that you review your choices on a regular basis to make sure they remain suitable. You can review your investments and make changes by logging into your Standard Life account. You can find out more about the self-select funds in the Standard Life Investment Guide.

Annual management charges

Remember that the annual management charge - the fee charged by the investment manager - differs depending on the type of investments you opt for. The annual management charge (AMC) is the fee charged by the investment manager for investing your pension account. It is shown as a percentage of your pension account and accrues daily over the course of the year, and is taken monthly by deducting units from each fund. Charges are taken to pay for the cost of setting up the scheme, the advice provided, fund management and policy administration.

Remember that you, and not the Trustee or Lloyd’s Register, are responsible for the investment choices you make in the DC Section. You may wish to take independent financial or tax advice before making any decisions. You can find an independent financial adviser near you by visiting unbiased.co.uk

Investment Portfolio

Fund code Factsheet AMC Additional Expenses Total Charge Volatility Fund Type Scheme Rebate Scheme Charge
MPJL  LR Emerging Markets Equity Fund 1.00% 0.17% 1.17% 7 Passive 0.79% 0.38%
BBJN LR SL BlackRock Cash Pension Fund 1.13% 0.07% 1.20% 1 Active 0.94% 0.26%
BBKN LR Sustainable Investments 1.00% 0.02% 1.02% Passive 0.72% 0.30%
BDIF LR Fixed Income Fund 1.00% 0.01% 1.01% Active 0.80% 0.21%
BBNK LR SL iShares Index Linked Gilt Index Pension Fund 1.00% 0.01% 1.01% Passive 0.81% 0.20%
LPDB LR SL iShares Over 15 Year Gilt Index Pension Fund 1.00% 0.02% 1.02% 6 Passive 0.81% 0.21%
MMKE LR Global Equity 1.00% 0.03% 1.03% Passive 0.79% 0.24%
DDHF LR Moderate Fund 1.00% 0.10% 1.10% Active 0.79% 0.31%
NACF LR Adventurous Fund 1.00% 0.11% 1.11% Active 0.78% 0.33%
LLJF LR Standard Life Long Corporate Bond Pension Fund 1.00% 0.01% 1.01% Active 0.79% 0.22%
LPAD LR SL iShares UK Equity Index Pension Fund 1.00% 0.01% 1.01% Passive 0.79% 0.22%
MMPB LR Property Fund 1.00% 0.03% 1.03% Active 0.72% 0.31%
DDLA LR Diversified Growth 1.25% 0.03% 1.28% Active 0.77% 0.51%