Choosing your funds

The Retirement Account caters for both straightforward investment needs and those that are more complex, The Account offers you access to a wide range of in-house and external funds covering a number of asset classes.

The investments options are:

• Scottish Widows Pension Funds.
• External funds accessed through a Fund Supermarket.
• Your own personalised investment portfolio provided by one or more selected Discretionary Fund Managers.
• Direct investment in UK Commercial Property (non Protected Rights only)

The value of the investment is not guaranteed and may go up and down depending on investment performance (and currency exchange rates where a fund invests overseas).

Together with your financial adviser, you can decide which options are the right ones for you.

Scottish Widows Pension Funds

We offer a wide range of funds across a range of risk profiles:

• Over 40 internally managed funds provided by Scottish Widows Investment Partnership (SWIP);
• Over 60 externally managed funds, covering a wide range of asset classes, geographical locations, sectors and management styles;
• 8 Multi-Manager funds.

You can find out more details on each type of investment and any requirement by contacting your financial adviser.

Fund Supermarket

With the Retirement Account, you can choose from over approximately 1,000 external funds, offered via a Fund Supermarket. You and your adviser can select the funds you believe are most suited to your needs.

What’s more, because we’ve negotiated terms on behalf of our customers, you could benefit from lower investment charges on the funds offered via the Fund Supermarket than if you were to invest in those funds direct.

Discretionary Fund Management Services

You and your adviser may decide that your investment needs are such that you require a more bespoke service to manage your Retirement Account investments. We offer a range of Discretionary Fund Managers for you to choose from.

Discretionary Fund Managers (DFM’s) manage your investments, making investment decisions that bear in mind your circumstances, stated aims, attitude to risk, and other requirements. They can provide investment guidance, detailed research and risk profiling services. Working with your adviser, the DFM will create and manage a bespoke investment portfolio on your behalf.

Commercial Property

You may have the option to invest your Retirement Account directly in a commercial property. This can offer you many benefits including:

• Potential to purchase your existing business premises.
• Potential to rent a property to your business, or a third party.
• Rental income generated by the property is free of tax.
• On sale, any growth in the value of the property is free of tax.
• VAT can be reclaimed by Scottish Widows if the property is VAT registered

It’s a complex area and there are of course specific risks associated with investing in commercial property. For example, if a property is difficult to sell you may not be able to take your pension benefits when you want.

The value of a property is based on the valuer’s opinion rather than fact. You won’t know the value for certain until it’s sold, and this could be less than expected.

You can find out more details on the range of investments by contacting your financial adviser.

Charges, limits and terms may change from time to time.