9
NEWS
DC and AVC Investment Changes
Website
For more information on the Fund’s investments
visit
DATE:
October 2011
Changes to DC and AVC investment
options bring favourable responses from
Fund members
Following a review of the fund range
available to DC Section members and for
Additional Voluntary Contributions (AVCs)
for both DB and DC Section members,
the Trustee has made changes to the
options that should bring benefits for both
employed and deferred members:
Graham Thomas, Trustee Director said “To
make sure that the most suitable investment
funds are available to members, the Trustee
reviews the fund range and takes advice from
its professional investment advisers on a
regular basis.”
As explained in the last issue of FYI, a complete overhaul of the DC Section investment strategy has been
undertaken. Last year, changes were made to the way in which the funds are administered so that the
Trustee can make changes to a fund more easily, to take advantage of market or manager potential or
reduce the impact of an underperforming manager.
Since this change was implemented, the investment managers of some of the funds have changed and
new ones have been added to others so that the fund performance is not dependent on the success of any
one investment manager.
The Global Equity Fund (and therefore the Adventurous and Mixed Funds which invest in this Fund) now
has greater exposure to overseas markets, including China, Brazil and Russia, which have performed well in
recent years. Changes have also been made which reduce the currency risk of the Fund.
All funds which have been changed will now be invested in a greater number of companies and industries
so there is less risk of a poor performing company or industry having a large impact on fund performance.
These changes were introduced in August this year and all members were issued a communication
outlining this change.
Andrew Kirton, the Fund’s Investment adviser said: “There were some transaction costs in making these
changes. However we have phased in some key changes to minimise these and expect they will be
outweighed by the benefit to members in terms of reduced fund charges and improved fund performance.”
Comments
“I don’t select my own funds as I’m comfortable that the Trustee is looking after the default option
I know I should pay more attention to this – particularly given the worrying state of investment
markets following the global recession. So this change is good news from my perspective and
gives me even greater reassurance.”
Denise Dillworth, employee member of the DC section
“I access the member website two or three times a year, usually when I receive a communication
on a change like this or when FYI triggers me to look at something. It can be really helpful as
there’s so much jargon used to discuss investments and the website explains the options in a
really clear and simple way.”
Fiona Charge, employee member of the DB Section
“The presentation on investments from Mark Britton of Zurich is really interesting. It gives a
very good view of relevant matters for members (DB members with AVCs as well as DC members)
who don’t have a good understanding of pensions.”
Andrew Brock, employee member of the DB section
Most popular
Fund Information section to hear from Mark Britton of Zurich, the
DC investment fund platform manager, and watch a presentation
on making and changing your investment choices.
F Y I
News
