Covid-19 and your investments
The Covid-19 pandemic has caused sharp rises and falls in fund values, and you may be worried about your pension. Any decisions about fund choices are important as they could have a big effect on your future benefits, and we recommend you speak to an independent financial adviser (IFA) before making any decisions. There’s a list of IFAs in your area at www.unbiased.co.uk

My fund choices

You can choose from a range of investment funds ​which fall into two categories – Lifestyle Strategies and Self-select funds.

Your choices will depend on how 'hands-on' you want to be in managing your investments.
 
Remember that the value of your investments can go down as well as up, and you may not get back the amount you have invested. It's a good idea to keep checking your fund choices to make sure they're still right for you.
 

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 ​makes the decisions f​or you.

Your holdings​ will be automatically moved to the funds which are believed to be most appropriate for the amount of time you have left until retirement.

If you are investing in a Lifestyle Strategy, you need to think about choosing your Target Retirement Age (TRA). This is the age you would like to retire, and it c​an be earlier or later than your Normal Retirement Age. This is so your funds can be matched to your needs.
 
You  should review your TRA regularly in case your retirement plans change.  Read more about the Lifestyle strategies below.

Self-select funds

If you want to be actively involved in managing your investments, you can choose from the range of self-select funds drawn up by the Trustee.

Global Equity Fund

This fund invests in global equities, including emerging market equities. The aim is to achieve a return in excess of inflation over the longer term. Equity prices are expected to experience short-term volatility in response to economic and stock market events

Long Term Growth Fund

This fund invests in a range of asset classes across different financial markets and economies, aiming for a return in excess of inflation over the longer term. The mix of assets will change over time according to the manager's views. This fund is expected to have lower volatility than a portfolio of equities. 

Aggregate Bond Fund

This fund invests in a mix of global non-government bonds and fixed-interest UK government bonds.

Index-linked and Global Bond Fund

This fund invests in a mix of global non-government bonds and index-linked UK government bonds. 

Deposit Fund

This fund is suitable for those who have a preference for a modest investment return, and is a lower financial risk investment and is designed to provide the potential for some capital security. The fund invests in a wide range of short-term instruments, not simply deposit accounts.
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On-going charges for all the above funds are paid for by levying a charge against each individual member's AVC Extra account. Information can be found on the factsheets above.

Where to go for advice

​Please speak to an independent financial adviser if you need support. You can find a list at  unbiased.co.uk