Fund update Changes to the Core Risk Profile Portfolios and Core Risk Lifestyle Portfolios

This portfolio aims to provide long-term capital growth while keeping risk in a target volatility range of 4-8% over a market cycle, which the fund manager defines as being three years or more. The portfolio is built using a collection of low-cost funds that aim to perform in line with their regional benchmarks, by investing in the same companies as them, in the same proportions. The fund invests in assets traditionally viewed as lower risk, including investment grade corporate bonds, government bonds (gilts) and cash. It will also invest a limited amount in riskier assets, including developed and emerging market equities. To be consistent with the target volatility range, the fund would typically be expected to invest between 5-35% in equities. The underlying assumptions that support the volatility and equity ranges are at the fund manager's discretion and are subject to change. This is the least risky of the Core Risk Profile Portfolios, so it may not return as much as our other portfolios in the range over the longer term.

This portfolio aims to provide long-term capital growth while keeping risk in a target volatility range of 3-7% over a market cycle, which the fund manager defines as being three years or more. The portfolio is built using a collection of low-cost funds that aim to perform in line with their regional benchmarks, by investing in the same companies as them, in the same proportions. The fund invests in assets traditionally viewed as lower risk, including investment grade corporate bonds, government bonds (gilts) and cash. It will also invest a limited amount in riskier assets, including developed and emerging market equities. To be consistent with the target volatility range, the fund would typically be expected to invest between 5-35% in equities. The underlying assumptions that support the volatility and equity ranges are at the fund manager's discretion and are subject to change. This is the least risky of the Core Risk Profile Portfolios, so it may not return as much as our other portfolios in the range over the longer term.

This portfolio aims to provide long-term capital growth while keeping risk in a target volatility range of 5.5-9.5% over a market cycle, which the fund manager defines as being three years or more. The portfolio is built using a collection of low-cost funds that aim to perform in line with their regional benchmarks, by investing in the same companies as them, in the same proportions. The fund invests in assets traditionally viewed as lower risk, including investment grade corporate bonds, government bonds (gilts) and cash. It will also invest to a lesser extent in riskier assets, including developed and emerging markets equities. To be consistent with the target volatility range, the fund would typically be expected to invest between 20-50% in equities. The underlying assumptions that support the volatility and equity ranges are at the fund manager's discretion and are subject to change. This is the second least risky of the Core Risk Profile Portfolios, so it may not return as much as other funds in the range over the longer term.

This portfolio aims to provide long-term capital growth while keeping risk in a target volatility range of 5.25-9.25% over a market cycle, which the fund manager defines as being three years or more. The portfolio is built using a collection of low-cost funds that aim to perform in line with their regional benchmarks, by investing in the same companies as them, in the same proportions. The fund invests in assets traditionally viewed as lower risk, including investment grade corporate bonds, government bonds (gilts) and cash. It will also invest to a lesser extent in riskier assets, including developed and emerging markets equities. To be consistent with the target volatility range, the fund would typically be expected to invest between 20-50% in equities. The underlying assumptions that support the volatility and equity ranges are at the fund manager's discretion and are subject to change. This is the second least risky of the Core Risk Profile Portfolios, so it may not return as much as other funds in the range over the longer term.

This portfolio aims to provide long-term capital growth while keeping risk in a target volatility range of 7-11% over a market cycle, which the fund manager defines as being three years or more. The portfolio is built using a collection of low-cost funds that aim to perform in line with their regional benchmarks, by investing in the same companies as them, in the same proportions. The fund invests in a balanced mix of assets traditionally viewed as lower risk (including investment grade corporate bonds, government bonds (gilts) and cash) and riskier assets (including developed and emerging markets equities). To be consistent with the target volatility range, the fund would typically be expected to invest between 35-65% in equities. The underlying assumptions that support the volatility and equity ranges are at the fund manager's discretion and are subject to change. This portfolio sits towards the lower end of our Core Risk Profile Portfolio range in terms of risk and long-term growth potential.

This portfolio aims to provide long-term capital growth while keeping risk in a target volatility range of 7.5-12.0% over a market cycle, which the fund manager defines as being three years or more. The portfolio is built using a collection of low-cost funds that aim to perform in line with their regional benchmarks, by investing in the same companies as them, in the same proportions. The fund invests in a balanced mix of assets traditionally viewed as lower risk (including investment grade corporate bonds, government bonds (gilts) and cash) and riskier assets (including developed and emerging markets equities). To be consistent with the target volatility range, the fund would typically be expected to invest between 35-65% in equities. The underlying assumptions that support the volatility and equity ranges are at the fund manager's discretion and are subject to change. This portfolio sits towards the lower end of our Core Risk Profile Portfolio range in terms of risk and long-term growth potential.

This portfolio aims to provide long-term capital growth while keeping risk in a target volatility range of 8.5-12.5% over a market cycle, which the fund manager defines as being three years or more. The portfolio is built using a collection of low-cost funds that aim to perform in line with their regional benchmarks, by investing in the same companies as them, in the same proportions. The fund invests in mainly riskier assets, including developed and emerging markets equities. It can also invest to a lesser extent in assets traditionally viewed as lower risk, including investment grade corporate bonds, government bonds (gilts) and cash. To be consistent with the target volatility range, the fund would typically be expected to invest between 50-80% in equities. The underlying assumptions that support the volatility and equity ranges are at the fund manager's discretion and are subject to change. This portfolio sits in the middle of our Core Risk Profile Portfolio range in terms of risk and long-term growth potential.

This portfolio aims to provide long-term capital growth while keeping risk in a target volatility range of 10.0-14.5% over a market cycle, which the fund manager defines as being three years or more. The portfolio is built using a collection of low-cost funds that aim to perform in line with their regional benchmarks, by investing in the same companies as them, in the same proportions. The fund invests in mainly riskier assets, including developed and emerging markets equities. It can also invest to a lesser extent in assets traditionally viewed as lower risk, including investment grade corporate bonds, government bonds (gilts) and cash. To be consistent with the target volatility range, the fund would typically be expected to invest between 50-80% in equities. The underlying assumptions that support the volatility and equity ranges are at the fund manager's discretion and are subject to change. This portfolio sits in the middle of our Core Risk Profile Portfolio range in terms of risk and long-term growth potential.

This portfolio aims to provide long-term capital growth while keeping risk in a target volatility range of 10.5-14.5% over a market cycle, which the fund manager defines as being three years or more. The portfolio is built using a collection of low-cost funds that aim to perform in line with their regional benchmarks, by investing in the same companies as them, in the same proportions. The fund invests mainly in riskier assets including developed and emerging markets equities. It can also invest to a lesser extent in assets traditionally viewed as lower risk, including investment grade corporate bonds, government bonds (gilts) and cash. To be consistent with the target volatility range, the fund would typically be expected to invest between 65-95% in equities. The underlying assumptions that support the volatility and equity ranges are at the fund manager's discretion and are subject to change. This means the portfolio sits towards the upper end of the Core Risk Profile Portfolio range in terms of risk and long-term growth potential.

This portfolio aims to provide long-term capital growth while keeping risk in a target volatility range of 12.5-17.5% over a market cycle, which the fund manager defines as being three years or more. The portfolio is built using a collection of low-cost funds that aim to perform in line with their regional benchmarks, by investing in the same companies as them, in the same proportions. The fund invests mainly in riskier assets including developed and emerging markets equities. It can also invest to a lesser extent in assets traditionally viewed as lower risk, including investment grade corporate bonds, government bonds (gilts) and cash. To be consistent with the target volatility range, the fund would typically be expected to invest between 65-95% in equities. The underlying assumptions that support the volatility and equity ranges are at the fund manager's discretion and are subject to change. This means the portfolio sits towards the upper end of the Core Risk Profile Portfolio range in terms of risk and long-term growth potential.

This portfolio aims to provide long-term capital growth while keeping risk in a target volatility range of 12-16% over a market cycle, which the fund manager defines as being three years or more. The portfolio is built using a collection of low-cost funds that aim to perform in line with their regional benchmarks, by investing in the same companies as them, in the same proportions. The fund invests mainly in riskier assets, including developed and emerging markets equities. It can also invest to a lesser extent in assets traditionally viewed as lower risk, including investment grade corporate bonds, government bonds (gilts) and cash. To be consistent with the target volatility range, the fund would typically be expected to invest between 75-100% in equities. The underlying assumptions that support the volatility and equity ranges are at the fund manager's discretion and are subject to change. This makes it our second highest risk of our Core Risk Profile Portfolios, but with the potential for higher long-term returns.

This portfolio aims to provide long-term capital growth while keeping risk in a target volatility range of 14.5-19.5% over a market cycle, which the fund manager defines as being three years or more. The portfolio is built using a collection of low-cost funds that aim to perform in line with their regional benchmarks, by investing in the same companies as them, in the same proportions. The fund invests mainly in riskier assets, including developed and emerging markets equities. It can also invest to a lesser extent in assets traditionally viewed as lower risk, including investment grade corporate bonds, government bonds (gilts) and cash. To be consistent with the target volatility range, the fund would typically be expected to invest between 75-100% in equities. The underlying assumptions that support the volatility and equity ranges are at the fund manager's discretion and are subject to change. This makes it our second highest risk of our Core Risk Profile Portfolios, but with the potential for higher long-term returns.

This portfolio aims to provide long-term capital growth while keeping risk in a target volatility range of 13.5-17.5% over a market cycle, which can last three years or more. The portfolio is built using a collection of low-cost funds that aim to perform in line with their regional benchmarks, by investing in the same companies as them, in the same proportions. The fund invests almost exclusively in riskier assets, including developed and emerging markets equities. To be consistent with the target volatility range, the fund would typically be expected to invest between 85-100% in equities. The underlying assumptions that support the volatility and equity ranges are at the fund manager's discretion and are subject to change. As such, it's the highest risk of our Core Risk Profile Portfolios, but also has the potential for higher long-term returns.

This portfolio aims to provide long-term capital growth while keeping risk in a target volatility range of 15.5-20.5% over a market cycle, which can last three years or more. The portfolio is built using a collection of low-cost funds that aim to perform in line with their regional benchmarks, by investing in the same companies as them, in the same proportions. The fund invests almost exclusively in riskier assets, including developed and emerging markets equities. To be consistent with the target volatility range, the fund would typically be expected to invest between 85-100% in equities. The underlying assumptions that support the volatility and equity ranges are at the fund manager's discretion and are subject to change. As such, it's the highest risk of our Core Risk Profile Portfolios, but also has the potential for higher long-term returns.

This is a lifestyle fund. In the early years (the growth stage) it invests in the Conservative Core Portfolio, which aims to provide long-term capital growth while keeping risk in a target volatility range of 4-8% over a market cycle, which can last three years or more.

The portfolio is built using a collection of low-cost funds that aim to perform in line with their regional benchmarks, by investing in the same companies as them, in the same proportions. The fund invests mainly in assets traditionally viewed as lower risk, including investment grade corporate bonds, government bonds (gilts) and cash. It will also invest a limited amount in riskier assets, including developed and emerging market equities (company shares). To be consistent with the target volatility range, the fund would typically be expected to invest between 5-35% in equities. The underlying assumptions that support the volatility and equity ranges are at the fund manager's discretion and are subject to change.

Six years before the start of your target retirement year (the lifestyle stage), we'll progressively start switching your investment into our Long Gilt and (in the final two years) Cash fund, with the aim of giving you more certainty about the level of annuity you'll be able to buy when you retire and to cater for your maximum tax-free cash entitlement, currently 25% of your pension pot. We review our lifestyle funds from time to time and may change how they work if we believe this to be in the best interests of investors.

This is a lifestyle fund. In the early years (the growth stage) it invests in the Conservative Core Portfolio, which aims to provide long-term capital growth while keeping risk in a target volatility range of 3-7% over a market cycle, which can last three years or more.

The portfolio is built using a collection of low-cost funds that aim to perform in line with their regional benchmarks, by investing in the same companies as them, in the same proportions. The fund invests mainly in assets traditionally viewed as lower risk, including investment grade corporate bonds, government bonds (gilts) and cash. It will also invest a limited amount in riskier assets, including developed and emerging market equities (company shares). To be consistent with the target volatility range, the fund would typically be expected to invest between 5-35% in equities. The underlying assumptions that support the volatility and equity ranges are at the fund manager's discretion and are subject to change.

Six years before the start of your target retirement year (the lifestyle stage), we'll progressively start switching your investment into our Long Gilt and (in the final two years) Cash fund, with the aim of giving you more certainty about the level of annuity you'll be able to buy when you retire and to cater for your maximum tax-free cash entitlement, currently 25% of your pension pot. We review our lifestyle funds from time to time and may change how they work if we believe this to be in the best interests of investors.

This is a lifestyle fund. In the early years (the growth stage) it invests in the Cautious Core Portfolio, which aims to provide long- term capital growth while keeping risk in a target volatility range of 5.5-9.5% over a market cycle, which can last three years or more.

The portfolio is built using a collection of low-cost funds that aim to perform in line with their regional benchmarks, by investing in the same companies as them, in the same proportions. The fund invests in assets traditionally viewed as lower risk, including investment grade corporate bonds, government bonds (gilts) and cash. It will also invest to a lesser extent in riskier assets, including developed and emerging markets equities (company shares). To be consistent with the target volatility range, the fund would typically be expected to invest between 20-50% in equities. The underlying assumptions that support the volatility and equity ranges are at the fund manager's discretion and are subject to change.

Six years before the start of your target retirement year (the lifestyle stage), we'll progressively start switching your investment into our Long Gilt and (in the final two years) Cash fund, with the aim of giving you more certainty about the level of annuity you'll be able to buy when you retire and to cater for your maximum tax-free cash entitlement, currently 25% of your pension pot. We review our lifestyle funds from time to time and may change how they work if we believe this to be in the best interests of investors.

This is a lifestyle fund. In the early years (the growth stage) it invests in the Cautious Core Portfolio, which aims to provide long-term capital growth while keeping risk in a target volatility range of 5.25-9.25% over a market cycle, which can last three years or more.

The portfolio is built using a collection of low-cost funds that aim to perform in line with their regional benchmarks, by investing in the same companies as them, in the same proportions. The fund invests in assets traditionally viewed as lower risk, including investment grade corporate bonds, government bonds (gilts) and cash. It will also invest to a lesser extent in riskier assets, including developed and emerging markets equities (company shares). To be consistent with the target volatility range, the fund would typically be expected to invest between 20-50% in equities. The underlying assumptions that support the volatility and equity ranges are at the fund manager's discretion and are subject to change.

Six years before the start of your target retirement year (the lifestyle stage), we'll progressively start switching your investment into our Long Gilt and (in the final two years) Cash fund, with the aim of giving you more certainty about the level of annuity you'll be able to buy when you retire and to cater for your maximum tax-free cash entitlement, currently 25% of your pension pot. We review our lifestyle funds from time to time and may change how they work if we believe this to be in the best interests of investors.

This is a lifestyle fund. In the early years (the growth stage) it invests in the Balanced Core Portfolio which aims to provide long-term capital growth while keeping risk in a target volatility range of 7-11% over a market cycle, which can last three years or more.

The portfolio is built using a collection of low-cost funds that aim to perform in line with their regional benchmarks, by investing in the same companies as them, in the same proportions. The fund invests in a balanced mix of assets traditionally viewed as lower risk (including investment grade corporate bonds, government bonds (gilts) and cash) and riskier assets including developed and emerging markets equities (company shares). To be consistent with the target volatility range, the fund would typically be expected to invest between 35-65% in equities. The underlying assumptions that support the volatility and equity ranges are at the fund manager's discretion and are subject to change.

Six years before the start of your target retirement year (the lifestyle stage), we'll progressively start switching your investment into our Long Gilt and (in the final two years) Cash funds, with the aim of giving you more certainty about the level of annuity you'll be able to buy when you retire and to cater for your maximum tax-free cash entitlement, currently 25% of your pension pot. We review our lifestyle funds from time to time and may change how they work if we believe this to be in the best interests of investors.

This is a lifestyle fund. In the early years (the growth stage) it invests in the Balanced Core Portfolio which aims to provide long-term capital growth while keeping risk in a target volatility range of 7.5-12.0% over a market cycle, which can last three years or more.

The portfolio is built using a collection of low-cost funds that aim to perform in line with their regional benchmarks, by investing in the same companies as them, in the same proportions.

The fund invests in a balanced mix of assets traditionally viewed as lower risk (including investment grade corporate bonds, government bonds (gilts) and cash) and riskier assets including developed and emerging markets equities (company shares). To be consistent with the target volatility range, the fund would typically be expected to invest between 35-65% in equities. The underlying assumptions that support the volatility and equity ranges are at the fund manager's discretion and are subject to change.

Six years before the start of your target retirement year (the lifestyle stage), we'll progressively start switching your investment into our Long Gilt and (in the final two years) Cash funds, with the aim of giving you more certainty about the level of annuity you'll be able to buy when you retire and to cater for your maximum tax-free cash entitlement, currently 25% of your pension pot. We review our lifestyle funds from time to time and may change how they work if we believe this to be in the best interests of investors.

This is a lifestyle fund. In the early years (the growth stage) it invests in the Balanced Plus Core Portfolio which aims to provide long-term capital growth while keeping risk in a target volatility range of 8.5-12.5% over a market cycle, which can last three years or more.

The portfolio is built using a collection of low-cost funds that aim to perform in line with their regional benchmarks, by investing in the same companies as them, in the same proportions. The fund invests mainly in riskier assets, including developed and emerging markets equities (company shares). It can also invest to a lesser extent in assets traditionally viewed as lower risk, including investment grade corporate bonds, government bonds (gilts) and cash. To be consistent with the target volatility range, the fund would typically be expected to invest between 50-80% in equities. The underlying assumptions that support the volatility and equity ranges are at the fund manager's discretion and are subject to change.

Six years before the start of your target retirement year (the lifestyle stage), we'll progressively start switching your investment into our Long Gilt and (in the final two years) Cash funds, with the aim of giving you more certainty about the annuity you'll be able to buy when you retire and to cater for your maximum tax-free cash entitlement, currently 25% of your pension pot. We review our lifestyle funds from time to time and may change how they work if we believe this to be in the best interests of investors.

This is a lifestyle fund. In the early years (the growth stage) it invests in the Balanced Plus Core Portfolio which aims to provide long-term capital growth while keeping risk in a target volatility range of 10.0-14.5% over a market cycle, which can last three years or more.

The portfolio is built using a collection of low-cost funds that aim to perform in line with their regional benchmarks, by investing in the same companies as them, in the same proportions. The fund invests mainly in riskier assets, including developed and emerging markets equities (company shares). It can also invest to a lesser extent in assets traditionally viewed as lower risk, including investment grade corporate bonds, government bonds (gilts) and cash. To be consistent with the target volatility range, the fund would typically be expected to invest between 50-80% in equities. The underlying assumptions that support the volatility and equity ranges are at the fund manager's discretion and are subject to change.

Six years before the start of your target retirement year (the lifestyle stage), we'll progressively start switching your investment into our Long Gilt and (in the final two years) Cash funds, with the aim of giving you more certainty about the annuity you'll be able to buy when you retire and to cater for your maximum tax-free cash entitlement, currently 25% of your pension pot. We review our lifestyle funds from time to time and may change how they work if we believe this to be in the best interests of investors.

This is a lifestyle fund. In the early years (the growth stage) it invests in the Growth Core Portfolio, which aims to provide long-term capital growth while keeping risk in a target volatility range of 10.5-14.5% over a market cycle, which can last three years or more.

The portfolio is built using a collection of low-cost funds that aim to perform in line with their regional benchmarks, by investing in the same companies as them, in the same proportions. The fund invests mainly in riskier assets including developed and emerging markets equities (company shares). It can also invest to a lesser extent in assets traditionally viewed as lower risk, including investment grade corporate bonds, government bonds (gilts) and cash. To be consistent with the target volatility range, the fund would typically be expected to invest between 65-95% in equities. The underlying assumptions that support the volatility and equity ranges are at the fund manager's discretion and are subject to change.

Six years before the start of your target retirement year (the lifestyle stage), we'll progressively start switching your investment into our Long Gilt and (in the final two years) Cash fund, with the aim of giving you more certainty about the level of annuity you'll be able to buy when you retire and to cater for your maximum tax-free cash entitlement, currently 25% of your pension pot. We review our lifestyle funds from time to time and may change how they work if we believe this to be in the best interests of investors.

This is a lifestyle fund. In the early years (the growth stage) it invests in the Growth Core Portfolio, which aims to provide long-term capital growth while keeping risk in a target volatility range of 12.5-17.5% over a market cycle, which can last three years or more.

The portfolio is built using a collection of low-cost funds that aim to perform in line with their regional benchmarks, by investing in the same companies as them, in the same proportions. The fund invests mainly in riskier assets including developed and emerging markets equities (company shares). It can also invest to a lesser extent in assets traditionally viewed as lower risk, including investment grade corporate bonds, government bonds (gilts) and cash. To be consistent with the target volatility range, the fund would typically be expected to invest between 65-95% in equities. The underlying assumptions that support the volatility and equity ranges are at the fund manager's discretion and are subject to change.

Six years before the start of your target retirement year (the lifestyle stage), we'll progressively start switching your investment into our Long Gilt and (in the final two years) Cash fund, with the aim of giving you more certainty about the level of annuity you'll be able to buy when you retire and to cater for your maximum tax-free cash entitlement, currently 25% of your pension pot. We review our lifestyle funds from time to time and may change how they work if we believe this to be in the best interests of investors.

This is a lifestyle fund. In the early years (the growth stage) it invests in the Growth Plus Core Portfolio, which aims to provide long-term capital growth while keeping risk in a target volatility range of 12-16% over a market cycle, which can last three years or more.

The portfolio is built using a collection of low-cost funds that aim to perform in line with their regional benchmarks, by investing in the same companies as them, in the same proportions. The fund invests mainly in riskier assets, including developed and emerging markets equities (company shares). It can also invest to a lesser extent in assets traditionally viewed as lower risk, including investment grade corporate bonds, government bonds (gilts) and cash. To be consistent with the target volatility range, the fund would typically be expected to invest between 75-100% in equities. The underlying assumptions that support the volatility and equity ranges are at the fund manager's discretion and are subject to change.

Six years before the start of your target retirement year (the lifestyle stage), we'll progressively start switching your investment into our Long Gilt and (in the final two years) Cash fund, with the aim of giving you more certainty about the level of annuity you'll be able to buy when you retire and to cater for your maximum tax-free cash entitlement, currently 25% of your pension pot. We review our lifestyle funds from time to time and may change how they work if we believe this to be in the best interests of investors.

This is a lifestyle fund. In the early years (the growth stage) it invests in the Growth Plus Core Portfolio, which aims to provide long-term capital growth while keeping risk in a target volatility range of 14.5-19.5% over a market cycle, which can last three years or more.

The portfolio is built using a collection of low-cost funds that aim to perform in line with their regional benchmarks, by investing in the same companies as them, in the same proportions. The fund invests mainly in riskier assets, including developed and emerging markets equities (company shares). It can also invest to a lesser extent in assets traditionally viewed as lower risk, including investment grade corporate bonds, government bonds (gilts) and cash. To be consistent with the target volatility range, the fund would typically be expected to invest between 75-100% in equities. The underlying assumptions that support the volatility and equity ranges are at the fund manager's discretion and are subject to change.

Six years before the start of your target retirement year (the lifestyle stage), we'll progressively start switching your investment into our Long Gilt and (in the final two years) Cash fund, with the aim of giving you more certainty about the level of annuity you'll be able to buy when you retire and to cater for your maximum tax-free cash entitlement, currently 25% of your pension pot. We review our lifestyle funds from time to time and may change how they work if we believe this to be in the best interests of investors.

This fund uses a two-stage investment process called lifestyling. In the early years (the growth stage) it invests in the Adventurous Core Portfolio which aims to provide long-term capital growth while keeping risk in a target volatility range of 13.5-17.5% over a market cycle, which the fund manager defines as being three years or more.

The portfolio is built using a collection of low-cost funds that aim to perform in line with their regional benchmarks, by investing in the same companies as them, in the same proportions. The fund invests almost exclusively in riskier assets, including developed and emerging markets equities (company shares). To be consistent with the target volatility range, the fund would typically be expected to invest between 85-100% in equities. The underlying assumptions that support the volatility and equity ranges are at the fund manager's discretion and are subject to change.

Six years before the start of your target retirement year (the lifestyle stage), we'll progressively start switching your investment into our Long Gilt and (in the final two years) Cash funds, with the aim of giving you more certainty about the level of annuity you'll be able to buy when you retire and to cater for your maximum tax-free cash entitlement, currently 25% of your pension pot. We review our lifestyle funds from time to time and may change how they work if we believe this to be in the best interests of investors.

This fund uses a two-stage investment process called lifestyling. In the early years (the growth stage) it invests in the Adventurous Core Portfolio which aims to provide long-term capital growth while keeping risk in a target volatility range of 15.5-20.5% over a market cycle, which the fund manager defines as being three years or more.

The portfolio is built using a collection of low-cost funds that aim to perform in line with their regional benchmarks, by investing in the same companies as them, in the same proportions. The fund invests almost exclusively in riskier assets, including developed and emerging markets equities (company shares). To be consistent with the target volatility range, the fund would typically be expected to invest between 85-100% in equities. The underlying assumptions that support the volatility and equity ranges are at the fund manager's discretion and are subject to change.

Six years before the start of your target retirement year (the lifestyle stage), we'll progressively start switching your investment into our Long Gilt and (in the final two years) Cash funds, with the aim of giving you more certainty about the level of annuity you'll be able to buy when you retire and to cater for your maximum tax-free cash entitlement, currently 25% of your pension pot. We review our lifestyle funds from time to time and may change how they work if we believe this to be in the best interests of investors.