ex Ascot Lloyd Pension Trust default fund
Please note: this option only applies to, and is available to, anyone who was transferred to Salvus from the Ascot Lloyd Pension Trust (ALPT) in October 2020 and were already invested in the ALPT default fund.
Retirement Age (Dated) Funds
Retirement savings are invested in one of our Retirement Age Funds. Savings will be invested in a Retirement Dated Fund that most accurately reflects the estimated retirement age, which is assumed to be age 65.
The funds are then managed to that date, with the investments gradually being changed so that when reaching retirement age, the fund will have some assets invested in equities and other assets invested in gilts/bonds/cash.
These Retirement Dated Funds are designed to help manage pension savings for the long term, without you having to make any decision on the underlying investments or risk in building up your savings.
The objective of the funds is to achieve growth on your savings over the period you are in the scheme, by managing the underlying asset allocation between growth and more cautious assets through dynamic fund management. The funds are targeted to have an asset allocation at retirement age which allows you to continue to obtain potential growth in your savings after retirement age whilst drawing an income.
As you no longer need to purchase an annuity at retirement, the Trustee has developed new funds to allow you the flexibility to decide what to do with your savings when you reach retirement age.
How does it work?
The funds are carefully managed with the investments gradually being changed so that when reaching retirement age, the fund will have some assets invested in equities and other assets invested in gilts/bonds/cash. Below is a visual representation of the ‘glide path’ of the fund.
The investment manager provides Retirement Age Funds at 5 year intervals, starting in 2020.
At the end of December 2020, the 2020 fund will be closed for new money and assets transferred to the Retirement Ready Fund. The Retirement Ready Fund will continue to run and as further funds are terminated (e.g. the 2025 fund at the end of December 2025), assets will be transferred to the Retirement Ready Fund.
The Retirement Ready Fund will maintain an asset allocation, in accordance with the glide path established for the Retirement Dated Funds at the completion of the glide path to retirement.
Asset allocation will take place within each Retirement Dated Fund in accordance with the glide path.
Each member’s default Retirement dated fund aims to achieve real investment growth for a member expecting to retire around age 65. Throughout a member’s investment journey the Fund will shift towards a more capital preservation focus as the target retirement date is reached. The Fund follows a glide path that sets the asset allocation between growth and protection assets, dynamically managed by Mobius Life. The Fund has been designed to allow for continued investment growth for members who are considering managing their investments for post retirement income.