AVC investment options

If you are considering early retirement you may wish to review your investment choices with a view to the possibility of switching your investments to a lower risk fund in the months before retirement to reduce the risk of capital loss. 

Standard Life - Annuity Purchase Fund

This fund has a very different aim from most other investment-linked funds. It is designed for investors approaching retirement and considering annuity purchase. It aims to reduce the effect of changes in long term interest rates on the value of pension income the fund can purchase. Long term interest rates are one of the main factors affecting the cost of an annuity. The fund invests predominately in bonds whose prices are normally expected to rise and fall broadly in line with the cost of purchasing pension income. The fund does not provide any guarantees in relation to the level of pension income you will be able to purchase at retirement. It also does not protect against changes in the cost of purchasing an annuity that arise due to changes in life expectancy.

Please note that this fund may not be suitable for everyone, for example it may not be suitable for a customer who is not considering annuity purchase or for those who intend to buy a pension that increases each year at a rate linked with inflation.

Standard Life - Deposit and Treasury Fund

The fund aims to provide a return before charges equivalent to overnight deposits by investing in deposits and short term money market instruments.

The fund price is not guaranteed by Standard Life and there could be circumstances where the fund price may fall. A fall might happen if, for example, there is a default by one of the banks where some of the money held or where there is an adverse market movement in the value of some if the money market instruments held. A fall may also happen if interest income falls so low as to be less than the charges applied to the fund.

Standard Life - Passive Plus III Pension Fund

The fund aims to provide long term growth while being managed to a level of risk, rather than a level of return. This fund is risk level III and as such invests in both lower risk investments such as money market instruments and certain types of bonds, and higher risk investments such as equities and property. This may suit you if you have a balanced attitude to risk. The investments in the fund can be from around the world. The fund can also invest in absolute return funds that aim to provide positive investment returns regardless of the market.

Standard Life - Ethical Pension Fund

The fund aims to provide long term growth by investing in a diversified portfolio of assets (including equities and corporate bonds) that meet Standard Life's strict ethical criteria. The fund's assets can be from both the UK and overseas and are predominately equity based. The ethical criteria are agreed with the Standard Life Ethical Committee and may be amended from time to time if considered appropriate. The fund manager will exclude companies which fail to meet the ethical criteria while seeking to include companies whose business activities are regarded as making a positive contribution to society. 

Standard Life - International Pension Fund

The fund aims to provide long term growth and is designed for investors who are looking for exposure to global equity markets. The fund invests predominately in the shares of companies listed on the Global stock markets and is actively managed by Standard Life's investment team, who will select stocks to try to take advantage of opportunities they have identified. 

Standard Life - Vanguard FTSE UK All Share Index Pension Fund

The fund aims to provide long term growth and is designed for investors who are looking for exposure to global equity markets. The fund invests predominately in the shares of companies listed on the Global stock markets and is actively managed by Standard Life's investment team, who will select stocks to try to take advantage of opportunities they have identified. 

Standard Life - BlackRock Aquila Connect Over 5 Year Index-Linked Gilt Fund

The objective of the fund is to invest in UK Government Index-linked securities (index-linked gilts) that have a maturity period of 5 years or longer. It aims to achieve a return consistent to the FTSE UK Gilts Index-Linked Over 5 Years Index, which is widely regarded as the benchmark for UK pension fund investment in the longer dated end of the UK index-linked gilt market. 

Standard Life - BlackRock Aquila HP World (Ex-UK) Equity Fund

The fund aims to invest in the shares of overseas companies (Europe, Japan, Far East, US and Canadian markets) according to market capitalisation weightings. Within each of those markets, the fund aims to generate returns consistent with those of each country's primary share market. This fund aims to achieve a return in line with the FTSE All-World Developed ex-UK Index. 

HSBC Amanah Fund

The fund aims to create long-term appreciation of capital through investment in a well diversified portfolio of equities listed worldwide in a manner that is consistent with the principles of the Shariah. 

Transport for London 2016 Lifestyle Fund

  • Under this approach, contributions are invested in equities in the early years to maximise investment returns
  • As you approach retirement, your AVCs are gradually switched into the Deposit & Treasury Fund to protect their value against stock market fluctuations
  • All the changes are automatic - you do not need to fill in any forms

Changing your investments

If you wish to change your investments please contact the Fund Office or complete and return relevant AVC change form below. You can change your investments at any time.

The links below will take you to the TfL Pension Fund's AVC providers' websites.

Clerical Medical
Equitable Life
Standard Life

Please note that Clerical Medical and Equitable Life are closed to future contributions.

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