Schroder Life Flexible Retirement Fund

close
Providing firm foundations. Delivering flexibility through design.
The Flexible Retirement Fund is designed to provide DC savers with a secure transition into retirement, whatever form that may take.

The DC savings journey

Members in a defined contribution (DC) pension are on a journey. Well managed, this journey takes them towards a pot of money to meet their needs in retirement.

In the early stages of the investment journey the pension scheme can take on carefully calculated risk to encourage growth.

By the time members reach the last stage of their savings journey, they are probably looking forward to retirement. But from around their mid-50s onwards, a major loss of savings could be disastrous.

There is unlikely to be enough time to replenish their pot through additional savings or investment returns unless they delay retirement, which is unlikely to be welcomed even if it is possible. The saver's need to minimise risk is therefore paramount.




Source: Schroders. For illustrative purposes only.

Introducing the Fund

The Schroder Life Flexible Retirement Fund has been based on an investment approach that acknowledges the risk and return profile savers need changes as they get older.

The aim is to protect savings from losses whilst offering real returns in excess of inflation in order to provide savers with firm foundations, before and during retirement.

The Fund has an ongoing charge of 0.3%, well within the Government's charge cap.

FUND OBJECTIVES

1. Inflation-beating
icon

A level of growth that offers real returns in excess of inflation to combat the effect of inflation on future purchasing power.

2. Reduced risk
icon

A unique risk management process that seeks to limit losses to 8% of the value of the fund over any holding period.

*The return and maximum loss targets are investment objectives only and not guaranteed

KEY FEATURES

Flexible
icon

Keeps all options open to the member, prior to, and during retirement.

Safe
icon

Risk management to cushion the member against potential market shocks.

Value for money
icon

A solution that seeks the optimal balance of cost, quality and performance.

Simple
icon

A balanced portfolio of assets which aims to generate returns in most market environments.

Investment process

Introduction

John McLaughlin introduces the Schroder Life Flexible Retirement investment process.

fund video

IN ORDER TO PROVIDE SAVERS A SECURE TRANSITION INTO RETIREMENT, THE FUND USES TWO DISTINCT, BUT COMPLEMENTARY INVESTMENT APPROACHES.


1. Multi-Asset portfolio to provide growth


At its core the fund is built around an actively managed portfolio targeting a real return of 2%*.


icon

Growth, when economies are growing


icon

Defensive, when economies are shrinking


icon

Inflation, when prices are rising faster than expected

2. Risk management to limit loss


To provide added safety, the fund seeks to limit the maximum loss (if any) an investor may experience to 8%*.


icon

As markets become uncertain the level of security
is increased by moving investments from
the core portfolio into cash.


icon

As markets stabilise, the cash can be
gradually invested back into the core portfolio




*The return and maximum loss targets are investment objectives only and not guaranteed.

Contacts

Stephen Bowles

Head of UK Institutional Defined Contribution

Tel: +44 (0) 20 7658 4916

Email: stephen.bowles@schroders.com

Tim Horne

DC Investment Solutions Manager

Tel: +44 (0) 20 7658 4877

Email: tim.horne@schroders.com