The Defined Contribution 2010 Plan fund range
This version of the Defined Contribution 2010 Pension Plan has now closed to new entrants and future regular contributions from your employer payroll, following the transfer to Aegon's TargetPlan platform. You can continue to make contributions to the Defined Contribution 2010 Pension Plan, by completing the plan alteration form (PDF).
The fund information below is specific to the members of the Defined Contribution 2010 Pension Plan.
If you're making regular contributions to TargetPlan, you can find TargetPlan fund information when you log into your account.
It is important to think about how you would like to invest your pension contributions.
Depending on how comfortable you are with choosing your investment funds, there are two main approaches to consider:
Lifestyle - have your funds chosen and changed for you
The ‘Lifestyle’ option chooses and changes your mix of funds for you automatically, based on how close you are to your retirement age.
If you invest in the Lifestyle fund (PDF - 245kb)(Opens new window), please contact us to let us know at what age you plan to retire so we can begin the process of moving your investments at the right time. We’ll always assume that you plan to retire at age 65, unless you tell us otherwise.
Self-select - choose your own mix from the fund range
The ‘self-select’ option lets you choose a mix of funds from the range of eight different funds covering shares (equities), bonds and cash.
If you do choose self-select funds in place of the Lifestyle fund, you’re taking control of the investment strategy. This means it will be up to you to manage the change from higher-risk, higher-return assets to lower-risk assets in the approach to retirement.
Self-select in combination with Lifestyle
You can also choose to put some of your pension contribution in Self-select and some in the Lifestyle option.
This might be something you’d consider if you like the switching approach of Lifestyle, but aren’t comfortable with the potential volatility from one year to the next of having all of your assets invested (through Lifestyle) in shares up until 10 years before retirement. In this case, a combination of the Lifestyle fund and one of the Self-select bond funds might be worth thinking about.
Before you decide which option suits you best, read on for more information about the Self-select option, followed by the Lifestyle option.
The value of an investment can fall as well as rise for a number of reasons, for example market and currency movements. You could get back less than you invest.
More about the lifestyle fund
This fund has a two stage investment approach aimed at investors who want to try to protect their savings from undue volatility as they approach retirement and prefer not to manage this process themselves.
In the first stage, the Accumulation Stage, your contributions are invested in the DCP Global Equities fund which invests in a mix of equities (shares) from around the world with the aim of growing your savings.
The second stage, the De-risking Stage, starts when you're 10 years from retirement and aims to reduce the risk your savings are exposed to. At this point, we move your existing savings and future contributions into the Target Dated lifestyle fund for your retirement year. This fund gradually and progressively moves your investment from equities into lower risk investments such as bonds and cash. This process happens automatically.
More about self-select funds
The funds available include the building blocks that we use to construct the Lifestyle fund — DCP Global Equities fund, the DCP GBP Corporate Bonds fund, the DCP UK Gilts fund and the DCP Cash fund.
You can click on the fund names to download a factsheet with more information.
Please note the fund names in any communications from us will show the prefix ‘DCP’ (which stands for Defined Contribution Plan). This will include yearly statements and any online services such as fund switching. So, for example, the UK Gilts fund will be shown as the DCP UK Gilts fund.
How BP chose the fund range
BP made sure that all of these funds were:
- Passive funds – these funds aim to follow the returns of an external market index (for example the FTSE All-Share Index)*.
- Transparent - You can see what the underlying fund has invested in and you can see how close the fund is to meeting its benchmark.
- Low cost - because the cost to the investment manager of running a passive fund is lower, this means that we can bring this fund range to you at a very competitive cost.
- Highly diversified - each fund invests across a wide range of underlying investments, and the fund range as a whole provides you with access to most types of asset classes.
* Remember that the effects of annual management charges and differences in the timing of pricing between the index and the fund mean their performance will never be exactly the same.
Please note there’s no guarantee that the funds will achieve what they aim to. We don't guarantee benefits and the value of investments can go down as well as up. For advice as to whether a fund is suitable for you, please speak to a financial adviser.
While there’s no guarantee that the investment manager will meet the performance of the fund benchmarks, we do monitor these funds through a strict governance process. You can be confident that these funds are given the highest scrutiny. But governance is not just about making sure that a fund’s performance is in line with its objectives - it’s also about quality control. This means there may be changes to the fund range in the future as we keep making sure that the funds we offer continue to meet expectations.
Please note that the links below this line don’t apply to the DC2010 plan – these are links to generic Aegon information.