Our investment strategy is designed using two investment funds, one targeting long-term growth and one aimed at protecting the value of built-up pension savings. Members’ pension savings are gradually switched from one to the other starting 10 years before their target retirement age.
Diversified Growth Fund (DGF)
The Diversified Growth Fund (DGF) targets stable long-term growth for Scheme members during most of their working lives. It does this using ‘diversification’ – a range of different types of investment.
We’ve set the DGF a higher target with the aim of increasing its growth potential by broadening our areas of investment.
Retirement Countdown Fund (RCF)
As Scheme members get closer to retirement most of their pension savings are gradually switched into the Retirement Countdown Fund (RCF). The RCF is designed to reduce the risk of built-up pension savings falling in value before they’re turned into retirement benefits. We call this gradual switching the ‘lifecycle’.
Find out more about the investment strategy.