Asset allocation changes - Governed Portfolios 1 to 9
We have recently made some changes to the assets the Governed Portfolios can invest in.
We've changed the mix of investments in the Governed Portfolios by introducing some new asset types;
- absolute return strategies including cash,
- high yield bonds, and
You can find more information about these asset types at Fund Information.
The Governed Portfolio you’re invested in takes into account your attitude to risk and your term to retirement. We design the investment mix of each portfolio so they can achieve as much investment return as possible, within a defined level of risk. Although we’ve added in new asset types, the risk level of your Governed Portfolio hasn’t changed. We’ve made sure the Governed Portfolios target the same amount of risk as they did before.
For more information on the asset allocation of the Governed Portfolios, please see our Governed Portfolio Leaflet.
These changes also apply if you're invested in a lifestyle strategy which uses the Governed Portfolios to plot your route to retirement.
The changes haven't affected your annual management charge.
Why did we make these changes?
All of our Governed Portfolios have ongoing governance and were recently reviewed by our investment experts.
Our aim is to maximise your investment returns in line with your attitude to risk. We do this by focusing on asset allocation; this means we create a balance of investments from various asset types. Assets perform differently, if one type is falling, others may be rising. We’ve added these asset types to the portfolios to create a broader and more diverse mix. The aim of this is to make the portfolios more resilient to any sudden shocks in the market.
For more information on asset types and the investment options offered by Royal London, please see A Clear and Simple Guide - Pension Investment Options or visit Fund Information.
What do you need to do?
There is no need for you to take any action at this stage; all of the changes have been made automatically. However, if you wish to do so, you can choose another investment option available to you under your plan. Full details of these can be found at Fund Information or on request.
Financial advice is really important when it comes to making any investment decisions about your retirement savings and planning for your future retirement. Although you don't need to take any action as a result of this change, you should contact your financial adviser, rather than Royal London, if you want investment advice on this matter.
If you don't have an adviser you can find details of advisers in your area by visiting unbiased.co.uk/find-an-ifa. Please note that advisers may charge for providing advice and you should confirm any costs beforehand.
If you have any general queries relating to your policy, then please call our Customer Service team on 0345 60 50 050.