Self-select options – manage yourself
Self-select options – manage yourself
If you have the time and knowledge to manage your investments yourself, you can choose from the ‘self-select’ fund range.
You’ll be responsible for monitoring your investments and switching them as you approach retirement. No changes will be made for you.
You can make changes at any time in My Pension Tracker.
You can choose from the following 12 funds, which cover different asset classes, sectors and geographical areas.
Each fund has its own level of risk.
| Fund name | Description | Factsheet link |
|---|---|---|
| AAA-AA-A corporate bond all-stocks index fund | This fund aims to capture the returns of the iBoxx £ Non-Gilt (ex-BBB) index and invests primarily in sterling-denominated AAA, AA and A-rated corporate bonds paying a fixed rate of interest. | See factsheet |
| Annuity focused fund | This fund aims to invest in assets that reflect the investments underlying a typical non-inflation-linked pension annuity. | See factsheet |
| Cash fund | This fund aims to provide capital protection with growth at short-term interest rates. It invests in short-term money markets such as bank deposits and Treasury Bills. | See factsheet |
| Ethical global equity index fund | This fund tracks the sterling total returns of the FTSE4Good Global Equity index (including reinvested income, less withholding tax) to within +/- 0.5% per year for two years in three. | See factsheet |
| Grow fund | This fund aims to capture the returns of equity markets through exposure to global equity markets. The allocation to the underlying stocks is weighted based on different risk factors to reduce concentration to any particular company or industry. | See factsheet |
| Property fund | This fund aims to get the best return from a portfolio of first-class freehold and leasehold interests in commercial and industrial property. This includes industrial warehouse buildings, shopping units and office blocks. It is also permitted to invest up to 15% in other external property funds in order to take advantage of investment opportunities in niche or specialist sections. | See factsheet |
| Shariah equity fund | This fund aims for long-term capital growth through a diversified portfolio of securities, as defined by a relevant world index, which meets Islamic investment principles as interpreted by the Shariah Committee. | See factsheet |
| Strengthen fund | This fund invests across a broad range of asset classes including equities, bonds and alternatives such as property and commodities. | See factsheet |
| UK equity fund | This fund aims to mirror the performance of the FTSE All-Share index, with income reinvested. | See factsheet |
| World emerging markets equity fund | This fund aims to capture the returns of the world’s emerging markets. It tracks the FTSE Emerging index. | See factsheet |
| World equity fund (hedged) | This fund aims to capture world equity market returns, tracking the FTSE World index, with an added element of currency hedging. | See factsheet |
| World equity fund (unhedged) | This fund aims to capture world equity market returns, tracking the FTSE World index. | See factsheet |
The value of your pension fund may go down as well as up and cannot be guaranteed. You may receive back less than your original investment.
You may wish to take financial advice if you are thinking of investing in any of the self-select options.
Investment jargon
Cash – returns on cash investments generally vary in line with bank lending rates.
Corporate bonds – issued by a company to raise money. When you invest, you are effectively lending money to the company. In return, it typically pays regular interest and repays the loan at a set date (known as maturity).
Diversification – this is a mixture of different types of assets within a portfolio. When one type of investment is doing poorly, another might be doing well. The winners help offset the losers, and the value of the overall portfolio doesn’t move up and down so much.
Equities – these are shares in a company. Owning shares means you own a little bit of that company and are entitled to a dividend (annual payment).
FTSE All-Share index – the Financial Times Stock Exchange is a UK index of around 800 companies trading on the London Stock Exchange.
FTSE4Good – includes socially responsible companies that meet certain environmental, social and governance (ESG) standards.
FTSE All-World (ex-UK) index – a list of thousands of companies around the world, excluding UK companies.
Gilts – similar to corporate bonds but issued by the UK government. Fixed-interest gilts pay a specified rate of interest. Index-linked gilts pay a variable rate of interest linked to inflation.
Property – this is generally an investment in commercial property such as office buildings, shopping centres and factories. There is little, if any, exposure to residential property. These investments can fluctuate in value but are often used for diversification.
Volatility – the amount of uncertainty or risk that the value of an asset will change. High volatility means that the value could change dramatically, up or down, usually in a short period of time.
