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Corporate pensions – Investment Options

Two distinct offers

We’ve segmented our corporate pensions investments into two distinct offers, designed to meet very different and specific needs.

By having a segmented investment offer we ensure that:

  • Members can make personal choices with ease and confidence
  • Scheme advisers have the choice and flexibility they need to create customised or bespoke solutions for specific employers.

Find out more about:

Core Lifestyling options: Pension investment approaches and premier pension investment approaches

Our core, risk-based lifestyling options are simple to understand, and enable members to make investment choices which most accurately reflect their personal attitudes to investment risk and reward depending on the way they want their money invested.

Members can choose between one of our Pension Investment Approaches or one of our Premier Pension Investment Approaches. Premier Pension Investment Approaches are slightly more expensive but aim to provide better potential returns for broadly the same levels of risk.

Our Investment Decision Tool is a quick questionnaire to shown them which of our approaches may suit them best.

For both the Pension Investment Approaches and Premier versions, there's a choice for members reflecting different attitudes to risk and reward.

Adventurous; Balanced; Cautious

When investing contributions we take into account:

  • Chosen approach
  • Length of time to retirement
  • The way a member wants their money invested
  • How they want to take their benefits

As a result, the investment choices made when joining the scheme should remain valid right through to commencement of benefits. To help us to make this happen, we use sophisticated asset allocation models developed in partnership with Moody's Analytics, a UK financial risk consultancy.

The models aim to ensure that for every member:

  • Appropriate investments for the chosen approach are used in the right proportions, at the right times and are continually rebalanced on a regular basis.
  • In all cases, we reduce the level of risk of members' investments over time. In the five years before their selected retirement date, the level of risk reduction will differ depending on how they will want to take their benefits. In these last five years, a member's fund will automatically adjust to strategically invest in one of three ways:
    • Targeting Annuity
    • Targetting Encashment
    • Targeting Flexible Access.

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Bespoke offer

Schemes with sophisticated requirements can create bespoke portfolios from our comprehensive range of over 100 funds, including:

1. Scottish Widows funds, managed by Aberdeen Asset Management

These Scottish Widows funds are all managed by a subsidiary of Aberdeen Asset Management plc (‘Aberdeen’). For the majority of the funds, Scottish Widows is responsible for defining the fund objectives and determining how the funds should be run. In some cases, Aberdeen defines the fund objectives and determines how the funds should be run.

Aberdeen Asset Management is a global asset manager. Based in 25 countries, Aberdeen manages assets for both institutional and retail clients from 37 offices around the world. As at February 2016, Aberdeen managed assets of over £290.5 billion*.

* Source: Aberdeen, February 2016

2. SW funds, managed by other fund managers

The SW funds are managed by selected and well-established fund managers. These fund managers define the SW funds’ objectives and determine how they should be run.

Covering a wide range of asset classes, geographical locations, sectors and management styles, our carefully selected SW pension funds provide building blocks to create bespoke investment portfolios.

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Scottish Widows may alter its investment range and adjust the terms and conditions that apply to its Pension Investment Approaches and pension funds.

Pensions are a long-term investment. The retirement benefits you receive from your pension plan will depend on a number of factors including the value of your plan when you decide to take your benefits which isn't guaranteed, and can go down as well as up. The value of your plan could fall below the amount(s) paid in.