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.

L&G World (ex UK) Equity Index Fund

Invests in:

Shares of overseas companies

Fund management:

Passive

Fund aim:

To track the performance of the FTSE World (excluding UK) Index (including re-invested income) to within +/- 0.50% each year for two years out of three.

L&G UK Equity Index Fund

Invests in:

Shares of UK companies

Fund management:

Passive

Fund aim:

To track the performance of the FTSE All-Share Index (including re-invested income) to within +/- 0.25% each year for two years out of three.

L&G All World Equity Index Fund

Invests in:

Shares of UK and overseas companies

Fund management:

Passive

Fund aim:

This Fund is invested wholly or predominately in ordinary shares that are constituents of the FTSE All-World Index. The objective of the Fund is to hold a portfolio of developed and emerging market securities designed to match the return of the index within a specified tolerance.

L&G Ethical Global Equity Index Fund

Invests in:

Shares of UK and overseas companies demonstrating strong environmental, social and governance practices

Fund management:

Passive

Fund aim:

To track the performance of the FTSE4Good Global Equity Index (including re-invested income) to within +/- 0.5% each year for two years out of three.

L&G All Stocks Index Linked Gilts Index Fund

Invests in:

Government bonds issued with a long-term repayment period

Fund management:

Passive

Fund aim:

To track the performance of the FTSE A Index-Linked (All Stocks) Index (including re-invested income) to within +/- 0.25% each year for two years out of three.

L&G Diversified Fund

Invests in:

A wide variety of investments including company shares, Government and corporate bonds, private equity, property, currency and commodities

Fund management:

Passive (some Active)

Fund aim:

To provide long-term investment growth through exposure to a diversified range of asset classes.

L&G HSBC Islamic Global Equity Index Fund

Invests in:

Shares of UK and overseas companies that meet Islamic investment principles

Fund management:

Passive

Fund aim:

To achieve capital growth over the long term. The Fund will track the performance of the Dow Jones Islamic Market Titans 100 Index, while minimising as far as possible the tracking error between the Fund's performance and the performance of the Index. In addition, the Fund shall comply with Shariah Principles as interpreted and laid down by the Shariah Committee and provided to the Directors and the Investment Manager.

L&G Future World Annuity Aware Fund

Invests in:

Government and corporate bonds issued both in the UK and overseas

Fund Management:

Passive

Fund aim:

To improve potential outcomes for investors likely to purchase fixed annuities by providing a diversified exposure to assets that reflect the broad characteristics of investments underlying a typical traditional level annuity product, incorporating Environmental, Social and Governance ("ESG") considerations as part of the investment strategy.

The fund cannot provide full protection against charges in annuity rates for individual members as these also depend upon a number of other factors (for example changes to mortality assumptions).

Fund notes:

This fund was previously the Pre-Retirement Fund.

This fund is designed for people who anticipate buying an annuity (a guaranteed income). If you invest in this fund but do not plan to buy an annuity, it is important to review your retirement plans and consider selecting a different investment which may match your intentions more closely.

L&G Future World Fund

Invests in:

Shares of UK and overseas companies which exhibit characteristics that have historically led to higher returns or lower risk than the market as a whole and are less carbon-intensive and earn green revenues

Fund management:

Passive

Fund aim:

To replicate the performance of the Index (the FTSE All-World ex CW Climate Balanced Factor Index) and will ensure the Fund has similar characteristics as the Index whilst not necessarily holding all the constituents of the Index. The anticipated annual tracking error, in normal market conditions, relative to the Index is +/-0.60% in two years out of three.

L&G Cash Fund

Invests in:

Short term money markets investments such as bank deposits and Treasury bills

Fund management:

Active

Fund aim:

To provide capital protection with growth at short term interest rates. The fund invests in the short-term money markets such as bank deposits and Treasury Bills.

Fund notes:

The Cash fund does not invest in any asset types where the capital value can fall, such as fixed interest securities. The value of the fund's assets would only fall if a deposit holder or the UK Government were unable to meet their obligations.

If the interest earned by the Cash fund's assets is insufficient to cover the fund management charge and any additional fund expenses, the unit price will fall.

Transport for London 2020 Lifestyle Strategy

Initially, your pension savings will be invested in a fund that invests in equities (the L&G All World Equity Index Fund). In return for targeting a higher level of investment growth over the longer term, you accept that the value of your pension savings may go up or down quite sharply, and more often, compared to some other lower risk asset classes.
 

When you are 20 years from your retirement date, Legal & General will automatically start to gradually move your AVC pension savings so that, by the time you are 10 years from your retirement date, 100% of your fund will be invested in a diversified fund (the L&G Diversified Fund) that aims to reduce exposure to investment risk by investing in a range of different  assets whilst also aiming to provide investment growth over the long term.
 

When you are five years from your retirement date, Legal & General will begin to move your AVC pension pot so that, when you reach your retirement date, 100% will be invested in a lower-risk fund that invests in short-term cash deposits (the L&G Cash Fund). Instead of aiming for higher investment growth, this fund aims to reduce the impact of any sudden falls in the value of your AVC pension pot, as you approach retirement.

All the changes are automatic - you do not need to fill in any forms.

Changing your AVCs

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

If you wish to change how your existing or future AVCs are invested you can do this online through Legal & General's Manage Your Account website: www.legalandgeneral.com/mya or by telephoning Legal & General on 0345 070 8686

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

Clerical Medical
Equitable Life
Standard Life

Please note that all are closed to future contributions.