Default – managed for you
Investment designed to be suitable for the needs of most members.
The Default option has been set up by the Trustees, with the help of their professional advisers, to fit the needs of most members of FuturePlanner. It is particularly suitable if you do not want to be actively involved in day-to-day investment decisions. Currently, over 90% of members have decided to invest in this way.
The strategy uses a process known as ‘lifestyling’. The Trustees’ advisers, Schroders, have created four blend funds with different investment objectives, which are used in the Default strategy. The three main funds all have ‘inflation plus’ targets, aiming to generate real growth in your savings.
Schroders will adjust the components of these blend funds, between different asset classes, based on their views of the opportunities and risks within investment markets and the overall return the fund is seeking.
As your career progresses, you will move from the higher- to the lower-risk funds, providing more protection from market volatility. As you get close to retirement, savings are moved into the final Retirement focus fund, which provides a platform for the various retirement options available: drawdown (the default), taking cash or buying an annuity.
Each of the funds are administered by Mobius Life, although there may be several different underlying investment managers chosen by Schroders within the funds.