These premium portfolios let savers invest in a strategy that matches their risk appetite in a single, sophisticated fund. The portfolios aim to boost returns by holding funds that we, and independent fund research consultancy Morningstar, think are among the best in their sectors.
The Select Portfolios focus on delivering solid returns while making it easy to save in a pension.
Benefits of Select Portfolios:
- Let savers choose the balance of risk and long-term growth potential that’s right for them.
- Uses Morningstar's asset allocation and fund selection expertise.
- Offer exposure to 'best in class' funds from managers rated by Morningstar.
- Are backed by our Funds Promise.
You can choose from six Select Portfolios, each of which is designed to match a different risk appetite.
- Growth Plus
- Balanced Plus
There’s no guarantee that fund objectives will be met. The value of investments can go down as well as up and investors may get back less than they invest.
How Select Portfolios work
Morningstar uses an asset allocation model to create the optimal strategic asset mix for each target risk level, and then tactically refines it to account for shorter-term expectations.
With the aim of maximising performance, each portfolio invests mainly in highly-rated funds selected by Morningstar. These funds are mostly actively managed, which means that they hold only the investments that their managers think will perform the best.
Monitoring and rebalancing
Because the portfolios are backed by our Funds Promise, we check them regularly to see if they're meeting expectations. That means:
- We make asset allocation changes based on recommendations from Morningstar.
- We check if both the component investments and overall portfolios meet their objectives.
- We change the mix if needed to ensure the optimum asset mix.