Active Retirement strategic lifestyle profiles

Transcription

1 Active Retirement strategic lifestyle profiles Our Active Retirement strategic lifestyle profiles (SLPs) are designed for customers who are planning to take their flexible retirement income (also known as drawdown) through our Standard Life Active Retirement Investment option. This guide tells you more about the Active Retirement SLPs which funds you ll be invested in and when. You should read this together with our How to choose the right options for your pension guide. For more information about Standard Life Active Retirement, see our customer guide. If you re planning on taking your retirement income in a different way, our Annuity, Lump Sum or Universal SLPs may be more appropriate. See our Annuity strategic lifestyle profiles, Lump Sum strategic lifestyle profiles and Universal strategic lifestyle profiles guides for more information. It s also important to consider when you ll take your retirement income as SLPs make changes to your s based on your selected retirement date. As a result, they may only be suitable if you re planning to start taking your retirement income on this date. If you aren t sure if an SLP is suitable for you, you should speak to a financial adviser. Active Retirement strategic lifestyle profiles 01/20

2 SLPs are designed to be a simple option if you re investing for retirement and want to save time choosing and managing your s. Once you ve chosen the SLP that s appropriate for you, our experts will: manage your money for you right up until you take your retirement income decide where you should be invested and when make sure the funds you re in don t take any more or less risk than they should There are two main stages in our Active Retirement SLPs: 1. Growth stage usually when you re more than 10 years from retirement Your money will be invested in one of our risk-based funds, depending on your chosen level of risk. These funds aim to increase the value of your pension over time. Please remember that growth is not guaranteed. All funds can go up and down in value and may be worth less than the amount invested. 2. Approaching retirement stage usually when you re less than 10 years from retirement Your money will gradually be moved into funds which are considered appropriate if you re planning to take your flexible retirement income (also known as drawdown) through our Standard Life Active Retirement option. This will happen automatically you don t need to do anything. One of the features of our SLPs is flexibility. We can make changes to them at any time to make sure they continue to meet your needs, for example because of changes in legislation. 02/20 Active Retirement strategic lifestyle profiles

3 Different profiles for different people We understand that people often have very different attitudes to s and risk. So there s a choice of Active Retirement SLPs, covering different styles and risk levels: MyFolio Managed Active Retirement SLP Active Plus Active Retirement SLP Passive Plus Active Retirement SLP MyFolio Market Active Retirement SLP Risk level I Risk level II Risk level III Risk level IV Risk level V N/A R2MG R3MG R4MG R5MG N/A R2AP R3AP R4AP R5AP N/A R2PP R3PP R4PP R5PP N/A R2MK R3MK R4MK R5MK See the following section for more information about the different styles, funds and risk levels to help you identify which SLP best meets your needs. The SLPs in more detail Some of the following descriptions might use words or phrases you re not familiar with. Speak to your financial adviser if you need an explanation. There may be a cost for this. For information about asset classes, and the volatility s, charges and approaches of these funds, please see the How the SLPs work section and the How to choose the right options for your pension guide. 1. Growth stage During this stage your money will be invested in one of our risk-based funds that aim to increase the value of your pension over time. Please remember that growth is not guaranteed. All funds can go up and down in value and may be worth less than the amount invested. These funds are managed to a level of risk, rather than targeting a specific level of return. They invest in a diverse range of assets and strategies, including equities, bonds, property, money market instruments and with the exception of the MyFolio Market range absolute returns. Active Retirement strategic lifestyle profiles 03/20

4 Standard Life MyFolio Managed s invest mainly in premium actively managed Standard Life Investments funds. The team can vary the proportions held in each asset class to try to take advantage of opportunities they have identified. Standard Life Active Plus s invest mainly in actively managed Standard Life Investments funds. The team can vary the proportions held in each asset class to try to take advantage of opportunities they have identified. Standard Life Passive Plus s invest mainly in index-tracking (passive) funds managed by Vanguard Asset Management. However, they also invest a proportion in actively managed absolute return, high yield bond and property funds from Standard Life Investments. Standard Life MyFolio Market s invest mainly in index-tracking (passive) funds managed by large, highly regarded providers. However, they also invest a proportion in actively managed high yield bond and property funds. The team can vary the proportions held in each asset class to try to take advantage of opportunities they have identified. There are five funds within each range, designed to closely match different risk levels I being the lowest risk and V being the highest. The goal of each fund is to provide the best possible returns for its given level of risk. Once you ve decided which style you want, simply choose the risk level which most closely matches your attitude to risk and a team of experts will do the rest. Generally, the higher the risk the greater the potential return, and the lower the risk the lower the potential return. However, even the lowest risk fund can still fall in value. Risk level I lower risk This level will have the highest amount in lower risk s such as money market instruments and certain types of bonds, and a lower amount in higher risk s such as equities and property. This may suit you if you have a conservative approach to investing and only want to take a limited amount of risk and expect to achieve only modest or relatively stable returns. Please note that we don t offer any risk level I Active Retirement SLPs as we don t believe they re appropriate if you re only prepared to take a small amount of risk with your s. If you feel this is the right risk level for you, then you might want to consider one of our risk level I Annuity or Lump Sum SLPs instead. 04/20 Active Retirement strategic lifestyle profiles

5 Risk level II lower to medium risk This level has a high amount in lower risk s such as money market instruments and certain type of bonds, but can still invest in higher risk s such as equities and property. This may suit you if you are relatively cautious with your s but are willing to accept some risk to try and achieve a reasonable return. Risk level III medium risk This level invests in both lower risk s such as money market instruments and certain types of bonds, and higher risk s such as equities and property. This may suit you if you have a balanced attitude to risk; not seeking risky s but not avoiding them either, accepting fluctuations in the value of your to try and achieve better long term returns. Risk level IV medium to higher risk This level has a high amount in higher risk s such as equities and property, but can still invest in lower risk s such as money market instruments and certain types of bonds. This may suit you if you are relatively comfortable with risk and accept there may be significant fluctuations in the fund value while aiming for higher long-term returns. Risk level V higher risk This level will have the highest amount in higher risk s such as equities and property, and a lower amount in lower risk s such as money market instruments and certain types of bonds. This may suit you if you are very comfortable with risk and accept the full extent of stock market fluctuations to aim for high long-term returns. As well as considering your attitude to risk, you should consider how much risk you re able to take, bearing in mind your other financial commitments and personal circumstances. If you re not sure which risk level might be appropriate for you, we have a risk questionnaire to help. Visit Active Retirement strategic lifestyle profiles 05/20

6 2. Approaching retirement stage (Active Retirement) MyFolio Managed, Active Plus, Passive Plus, MyFolio Market This fund is used to start gradually moving your money out of the growth phase of a lifestyle profile, into a mix of s which are considered appropriate if you re planning to take your retirement income through the Standard Life Active Retirement option. It may not be suitable as a standalone fund or if you re building your own portfolio from our full fund range. The fund aims to meet its goal by holding different types of funds, such as those investing in equities (shares), bonds (loans to a government or company) and non-residential property (such as offices, shopping centres and shares in property development companies). These s can be from around the world, including emerging markets, which means that some of them will be in a foreign currency. The fund can also invest in absolute return funds that aim to provide positive returns, regardless of whether markets are going up or down, over the medium to long term. They do this by using a wide range of strategies including those using derivatives. Derivatives are financial instruments whose value comes from movement in other s, such as equities and currencies. All s are reviewed regularly to make sure they remain suitable for the fund s goal, and may change over time. The fund doesn t provide any guarantee about the level of retirement income you ll receive. 06/20 Active Retirement strategic lifestyle profiles

7 (Active Retirement) MyFolio Managed, Active Plus, Passive Plus, MyFolio Market The goal of this fund is to make sure that at your retirement date your money is in the same types of which are used in Standard Life Active Retirement. It s used as part of a lifestyle profile, and may not be suitable as a standalone fund or if you re building your own portfolio from our full fund range. The fund aims to meet its goal by holding different types of funds, such as those investing in equities (shares), bonds (loans to a government or company) and non-residential property (such as offices, shopping centres and shares in property development companies). The s in the fund can be from around the world, including emerging markets, which means that some of the s will be in a foreign currency. The fund can also invest in absolute return funds that aim to provide positive returns, regardless of whether markets are going up or down, over the medium to long term. They do this by using a wide range of strategies including those using derivatives. Derivatives are financial instruments whose value comes from movement in other s, such as equities and currencies. As you can normally take a tax free lump sum from your pension pot, some of the fund is invested in lower risk funds. All s are reviewed regularly to make sure they remain suitable for the fund s goal, and may change over time. The fund doesn t provide any guarantee about the level of retirement income you ll receive. Active Retirement strategic lifestyle profiles 07/20

8 How the SLPs work The following charts show how the funds you invest in will vary during the years before your selected retirement date. However, we may change when we move your s, and the mix of funds within the SLPs. We review this every year, and make any changes that are needed. We can also make changes to them at any time, for example because of changes in legislation. See The SLPs in more detail section for more information about the funds in the SLPs. Risk level II Active Retirement SLPs % of s > Years to retirement months MyFolio Managed II Active Retirement SLP (: R2MG) Standard Life MyFolio Managed II (MyFolio Managed Active Retirement) (MyFolio Managed Active Retirement) AAMI % 0.52% 1.32% Active MMMF % 0.40% 1.40% Active JJLC % 0.26% 1.26% Active 08/20 Active Retirement strategic lifestyle profiles

9 Active Plus II Active Retirement SLP (: R2AP) Standard Life Active Plus II Pension (Active Plus Active Retirement) (Active Plus Active Retirement) Passive Plus II Active Retirement SLP (: R2PP) Standard Life Passive Plus II (Passive Plus Active Retirement) (Passive Plus Active Retirement) MyFolio Market II Active Retirement SLP (: R2MK) Standard Life MyFolio Market II (MyFolio Market Active Retirement) (MyFolio Market Active Retirement) LLPA % 0.02% 1.12% Active LPNI % 0.40% 1.40% Active DDNC % 0.26% 1.26% Active JJKM % 0.03% 1.03% Active GGBF % 0.40% 1.40% Active ADMC % 0.26% 1.26% Active LLJE % 0.29% 1.09% Active EEPB % 0.40% 1.40% Active KKEK % 0.26% 1.26% Active Active Retirement strategic lifestyle profiles 09/20

10 Risk level III Active Retirement SLPs % of s > Years to retirement months MyFolio Managed III Active Retirement SLP (: R3MG) Standard Life MyFolio Managed III (MyFolio Managed Active Retirement) (MyFolio Managed Active Retirement) Active Plus III Active Retirement SLP (: R3AP) Standard Life Active Plus III (Active Plus Active Retirement) (Active Plus Active Retirement) AAAF % 0.56% 1.36% Active MMMF % 0.40% 1.40% Active JJLC % 0.26% 1.26% Active DDNA % 0.02% 1.12% Active LPNI % 0.40% 1.40% Active DDNC % 0.26% 1.26% Active 10/20 Active Retirement strategic lifestyle profiles

11 Passive Plus III Active Retirement SLP (: R3PP) Standard Life Passive Plus III (Passive Plus Active Retirement) (Passive Plus Active Retirement) MyFolio Market III Active Retirement SLP (: R3MK) Standard Life MyFolio Market III (MyFolio Market Active Retirement) (MyFolio Market Active Retirement) CCHD % 0.03% 1.03% Active GGBF % 0.40% 1.40% Active ADMC % 0.26% 1.26% Active AACE % 0.30% 1.10% Active EEPB % 0.40% 1.40% Active KKEK % 0.26% 1.26% Active Active Retirement strategic lifestyle profiles 11/20

12 Risk level IV Active Retirement SLPs % of s > Years to retirement months MyFolio Managed IV Active Retirement SLP (: R4MG) Standard Life MyFolio Managed IV (MyFolio Managed Active Retirement) (MyFolio Managed Active Retirement) Active Plus IV Active Retirement SLP (: R4AP) Standard Life Active Plus IV (Active Plus Active Retirement) (Active Plus Active Retirement) DDNP % 0.59% 1.39% Active MMMF % 0.40% 1.40% Active JJLC % 0.26% 1.26% Active FFND % 0.02% 1.17% Active LPNI % 0.40% 1.40% Active DDNC % 0.26% 1.26% Active 12/20 Active Retirement strategic lifestyle profiles

13 Passive Plus IV Active Retirement SLP (: R4PP) Standard Life Passive Plus IV (Passive Plus Active Retirement) (Passive Plus Active Retirement) MyFolio Market IV Active Retirement SLP (: R4MK) Standard Life MyFolio Market IV (MyFolio Market Active Retirement) (MyFolio Market Active Retirement) JJJA % 0.04% 1.04% Active GGBF % 0.40% 1.40% Active ADMC % 0.26% 1.26% Active LLNB % 0.33% 1.13% Active EEPB % 0.40% 1.40% Active KKEK % 0.26% 1.26% Active Active Retirement strategic lifestyle profiles 13/20

14 Risk level V Active Retirement SLPs % of s > Years to retirement months MyFolio Managed V Active Retirement SLP (: R5MG) Standard Life MyFolio Managed V (MyFolio Managed Active Retirement) (MyFolio Managed Active Retirement) NBGC % 0.59% 1.39% Active MMMF % 0.40% 1.40% Active JJLC % 0.26% 1.26% Active Active Plus V Active Retirement SLP ( : R5AP) Standard Life Active Plus V (Active Plus Active Retirement) (Active Plus Active Retirement) FFBA % 0.03% 1.18% Active LPNI % 0.40% 1.40% Active DDNC % 0.26% 1.26% Active 14/20 Active Retirement strategic lifestyle profiles

15 Passive Plus V Active Retirement SLP (: R5PP) Standard Life Passive Plus V (Passive Plus Active Retirement) (Passive Plus Active Retirement) MyFolio Market V Active Retirement SLP (: R5MK) Standard Life MyFolio Market V (MyFolio Market Active Retirement) (MyFolio Market Active Retirement) FFKG % 0.05% 1.05% Active GGBF % 0.40% 1.40% Active ADMC % 0.26% 1.26% Active BBIA % 0.26% 1.06% Active EEPB % 0.40% 1.40% Active KKEK % 0.26% 1.26% Active The charges are not guaranteed. They are regularly reviewed and may be changed in the future. The information in this guide is correct as at March If you need more help to understand these tables, including an explanation of active/passive s, please see the How to choose the right options for your pension guide. Active Retirement strategic lifestyle profiles 15/20

16 Important information Before making your choices, please make sure you read the following information, which includes details of some of the risks you should be aware of. If you re still not sure what to do, you may want to speak to a financial adviser. There may be a cost for this. If you choose to invest in an SLP, you can only combine this with a with profits fund (where available). You cannot combine this with any other fund, or any other SLP or lifestyle profile. The potential return on each fund depends on the performance of the assets it invests in and the charges on the fund. The price of units depends on the value of the fund s assets after charges. This can go down as well as up, and your may be worth less than what was paid in. Some funds invest in overseas assets. This means that exchange rates and the political and economic situation in other countries can significantly affect the value of these funds. The value can go down as well as up, and your may be worth less than what was paid in. The asset mix that each fund invests in is continuously reviewed. It may be changed in line with developments in the relevant markets. Part of each fund may be held in cash and other money market instruments see our How to choose the right options for your pension guide for more information. You ll probably be one of many investors in each fund you choose. Sometimes, in exceptional circumstances, we may have to wait before we can transfer or switch your funds. This is to maintain fairness between those remaining in and those leaving the fund. This delay could be for up to a month. 16/20 Active Retirement strategic lifestyle profiles

17 But for some funds, the delay could be longer: It may be for up to six months if it s a property based fund because property and land can take longer to sell. If our fund invests in an external fund, the delay could be longer if the rules of the fund allow this. If we have to delay a transfer or switch, we ll use the fund prices on the day the transaction takes place these prices could be very different from the prices on the day you made the request. Some funds invest in property. The valuation of property is generally a matter of a valuer s opinion rather than fact. Some funds invest in funds managed by external fund managers. In these cases, the description of the fund is provided by the external fund manager so Standard Life can t guarantee that it s accurate. External fund managers are in charge of managing their own funds, including what they invest in. This means that Standard Life is not responsible for these funds performance or continued availability. The performance of the Standard Life version of a fund will be different from what you would see if you invested in the underlying fund directly. There can be several differences, due to charges, cash management, tax and the timing of investing. Some fund managers may look to get a better return by lending some of the assets to certain financial institutions. This involves some risk and, in certain circumstances, the fund could suffer a loss for example, if the institution encountered financial difficulties and was unable to return the asset. The fund manager will use some controls to manage this risk, such as obtaining security from the borrower and monitoring their credit. External fund managers may also lend assets and are responsible for their own controls. Active Retirement strategic lifestyle profiles 17/20

18 s can sometimes use derivatives to improve portfolio management and to help meet objectives. A derivative is a financial instrument its value is derived from the underlying value of movement in other assets, financial commodities or instruments, like equities, bonds, interest rates, etc. There is a risk that a counterparty will fail, or partially fail, to meet their contractual obligations under the arrangement. Where a counterparty fails, the fund could suffer a loss. As part of the management of a fund, a number of controls can be used to reduce the impact of this risk, such as holding collateral and monitoring credit s. Depending on how it is used, a derivative can involve little or no financial outlay but result in large gains or losses. Standard Life has control over the use of derivatives in its funds and external fund managers are responsible for their own controls. These SLPs were correct when this document was published. We can t guarantee that they will be available when you make an. 18/20 Active Retirement strategic lifestyle profiles

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20 Standard Life Assurance Limited is registered in Scotland (SC286833) at Standard Life House, 30 Lothian Road, Edinburgh EH1 2DH. Standard Life Assurance Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. SLPAR Standard Life 20/20