Growth solutions
We offer two ranges of growth solutions, Core and Select, each offering a choice of risk/reward profiles. They aim to make investing easier by providing a well-diversified portfolio in a single fund.
Advantages of a growth solution
These ready-made investment portfolios (13 in total) offer six different risk levels to choose from and aim to grow your savings over the long term. Available to all pension investors, they:
- are a whole portfolio in one fund, making choosing and keeping track of your investments easier;
- use the investment expertise of Morningstar, a global investment research company;
- let you choose the balance between risk and long-term growth potential that you're comfortable with. Generally riskier investments offer better long-term growth potential, but are also more likely to fall in value;
- are checked regularly to see if they're meeting their objectives - see our Funds Promise below.
Two portfolio types to choose from:
| Core |
|---|
| Aims for market returns |
| Long-term risk management |
| Value option |
| Mainly passively managed* |
| Select |
|---|
| Aims for outperformance |
| Long-term risk management |
| Premium option |
| Mainly actively managed** |
There's no guarantee the funds will meet their objectives. Their value may go down as well as up and investors may get back less than the amount invested.
Our Funds Promise
We regularly check insured funds, like those above, to see if they're meeting expectations. Find out more.
*Passively managed funds aim to closely match the performance of the markets they invest in. So, for example, a fund investing in the UK stockmarket might aim to match the performance of the FTSE All Share by investing in the same companies as the FTSE All Share and in the same proportions. Because there are no active decisions involved, passive funds are usually cheaper than active funds.
**Actively managed funds aim to beat the performance of a particular benchmark So, for instance, an active manager investing in the UK stockmarket might aim to outperform the FTSE All Share by choosing to invest in companies that they think will perform better than average and avoiding those they don't think will do so well. You may have to pay more for this type of fund as there's greater skill involved, although there's no guarantee they will out perform.