Self-select funds (heritage Equitable Life)

We offer a broad range of funds designed to allow more experienced investors to build a portfolio to suit their goals and attitude to risk.

From money market funds for short-term investment to equity funds that seek to help your savings grow over the long term, we are confident we have a fund or blend of funds to meet your needs. Click here to watch our sound bite videos Time-tested strategies for achieving your long-term investment goals

Equity funds

Funds that invest in shares of companies in the UK, in other regions or around the globe. Equity funds can deliver stronger growth, but can experience large fluctuations in value, so you should be prepared to invest for the long term (at least five years).

FTSE All-Share Tracker

Medium risk 3

UK Equity

Medium risk 3

Asia-Pacific Equity

Medium-to-high risk 4

European Equity

Medium-to-high risk 4

Global Equity

Medium-to-high risk 4

US Equity

Medium-to-high risk 4

Bond funds

Funds that invest in bonds issued by governments or companies. Government bond funds carry a lower risk that the borrower will not repay their loan, but may struggle to keep pace with inflation. Corporate bond funds can provide higher returns but carry more risk.

UK Government Bond

Low-to-medium risk 2

Sterling Corporate Bond

Low-to-medium risk 2

Money market fund

A fund that invests in short-term financial instruments. Money market funds can provide a high level of capital security, but the value of your savings may not keep pace with inflation.

Money Market

Low risk 1

Secure cash investment fund (to transition with-profits transferring to unit linked)

On 1 January 2020 with-profits policies transferred to the Secure cash investment fund. The unit price for the Secure cash investment fund is guaranteed not to decrease from the price at 1 January 2020. Your savings will gradually transition into your chosen fund or funds over your chosen investment timeline.

Secure cash investment

Low risk 1

Managed fund

To maximise the overall return from investments covering the UK and overseas equities, gilt-edged and fixed interest stock and property. 40-85% shares.

Managed fund

Medium risk 3

Property fund (not open to new investments)

To provide investors with a combination of income and growth of capital consistent with a diversified commercial property portfolio. The fund will generally invest in UK commercial property. It may also invest directly or indirectly in any UK property and continental European commercial property.

Property

Medium-to-high 5

Fund of Investment Trusts (not open to new investments)

To achieve capital growth in the long term by investing mainly in investment trust companies.

Fund of Investment Trusts

Medium-to-high 5

Our risk ratings

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You should ensure you are comfortable with the level of risk and reward associated with any fund you invest in. The value of all unit-linked funds can go down as well as up and you may not get back the amount you invested.

1

Low risk

Return of capital is the priority ahead of potential growth although your capital is not guaranteed. With low risk funds, it is possible that your investment return will be insufficient to meet your financial goals and may not keep pace with inflation. Potential for low levels of price fluctuation. Growth is likely to be modest.

2

Low-to-medium risk

Investments that offer some element of protection from losses alongside the possibility of long-term investment growth or income. The value of your capital could go up or down. With low-to-medium risk funds, it is possible that your investment return will be insufficient to meet your financial goals. Returns may not keep pace with inflation.

3

Medium risk

Long-term growth and income are balanced against risk to capital. The value of your capital could go up or down.

4

Medium-to-high risk

Medium-to-high risk

5

High risk

The greatest potential for capital growth or income. But also the highest risk of capital loss. The value of your capital could go up or down, more frequently and by greater amounts, than lower risk funds.

Achieve peace of mind with your policy

Before you make a choice, we encourage you to review the investment options available to you carefully and consider your financial circumstances, goals and attitude to risk.

Your time horizon

This simply means how long you want to be invested.

Higher risk funds can fluctuate more over short time periods, but over the longer term they have the ability to provide higher returns and can protect your savings from the effects of inflation. When investing in higher risk funds, you should be prepared to invest for five years or more to give you more time to ride out the bumps.

Cautious funds tend to experience smaller fluctuations in value and can therefore be more suitable if you have a shorter time horizon. However, potential returns are likely to be lower and may not keep up with inflation.

Your attitude to risk

Whenever you make an investment, you expose your savings to a degree of risk. Working out how much risk you can afford to take, and how much risk you are prepared to take, is important in helping you to select the fund or funds most suitable for your needs.

Balancing risk and reward

A general rule is that the more risk you are prepared to take, the greater your potential returns could be over time. On the downside, your potential losses may also be greater. The less risk you are prepared to take, the lower your potential returns could be over time—but your potential losses may also be reduced.

However, even if you are able to invest over a long period of time, you may not be comfortable with large fluctuations in the value of your investment.

Alternatively, you may be able to accept higher levels of investment risk if it helps you to meet your investment goals.

Spreading your risk

You can spread your risk and reduce the impact of market fluctuations by investing in a combination of different asset types, for example through one of our multi-asset funds.

It’s important to bear in mind that the value of unit-linked funds can go down as well as up and you may not get back the amount you invested. You should ensure you are comfortable with the level of risk associated with any fund you invest in.

Pension case studies

Case studies are for illustrative purposes only.

Case Study Profile 1

Margaret doesn’t feel confident about making an investment choice

Margaret could look at our Investing by Age strategy, in which investment professionals would spread her money across a broad range of investments based on her age. She could also consider our multi-asset funds, which would let her make one decision based on her goals and attitude to risk.

Sarah Case study image

Sarah, 43, is an experienced investor who is saving for retirement

Sarah’s relatively long time horizon and her investment experience suggest that she may want to consider equity funds and/or Multi-Asset Growth as part of her investment choice. She could also consider the Investing by Age strategy, which is designed to help her money grow while she can afford to take some risk, and then focus on protecting her savings as she nears retirement.

Bob Case Study Image

Bob is just two years from retirement

At this stage in his retirement planning, Bob may consider cash and money market funds, or UK Gilt funds, which offer greater protection for his savings, although growth may be modest and the value of his savings may not keep up with inflation. He could also consider Multi-Asset Cautious, which emphasises capital preservation rather than growth.

Richard Case Study Image

Richard, 60, isn’t relying on his heritage Equitable Life savings in retirement

Although he is nearing retirement, Richard’s strong financial position means he can potentially afford to take some risk with some of his savings. He may therefore be able to consider equity and corporate bond funds within his investment choice. He could also look at Multi-Asset Moderate, which is designed for investors seeking moderate growth.

Glossary

Corporate bond funds

These funds invest in bonds issued by corporate borrowers. Returns may be higher than government bonds, for a higher level of risk. Returns may not keep pace with inflation.

Diversification

A term used to describe spreading your investments across a range of different assets classes, regions or industry sectors, to avoid concentrating your risk and potentially reducing the impact of market movements on the value of your investments.

Equity funds

Equity funds invest in a range of company shares. The price of shares can be volatile and go up or down based on how well the company is currently doing, or what its prospects are.

Government bond funds

These funds invest in bonds issued by governments. While interest rates remain low, returns are likely to be low and may not keep pace with inflation.

Money market or cash funds

Money market or cash funds invest in securities with a very short maturity, usually issued by governments, financial institutions or large companies. These are conservative investments in low-risk instruments, with the aim of protecting the value of your investment. Returns will likely be low and may not keep pace with inflation.

Multi-asset funds

These funds can invests across a wide range of equities, bonds and other assets. We seek to provide diversification.

Secure cash investment

A temporary cash fund in which the unit price is guaranteed not to decrease from the price at the initial investment date, although its value is unlikely to keep pace with inflation.

Unit-linked investment fund

Unit-linked funds allow you to combine your money with other investors so that you can access a diversified range of investments within a single portfolio. They can provide a cost-effective way of investing in a range of securities and assets, including shares of UK and overseas companies, corporate bonds, government bonds, money market instruments and cash deposits.

It’s important to bear in mind that the value of unit-linked funds can go down as well as up and you may not get back the amount you invested. You should ensure you are comfortable with the level of risk and reward associated with any fund you invest in.

If you are unsure whether our self-select funds are right for you, or if you’re not sure which fund to choose, please speak to an independent financial adviser.

Your other investment fund choices

In addition to our Self-Select fund range, you have two other choices of investment strategy for pensions and one for life, which you can use individually or combine.