We regularly review the funds you’re invested in to make sure they’re meeting their objectives. We’ll also make changes to them if we think it will deliver better outcomes for you.

Your pension's invested to help it grow; however, the value of all investments can go down as well as up and could be worth less than was paid in.

We’ve added some investments, called private assets, into the managed funds

Funds impacted
Phoenix Century Managed Pension Series 1
Phoenix Century Managed Pension Series 3
Phoenix Century Managed Pension Series 4
Phoenix Century Managed Pension Series 5
Phoenix Century Managed Pension Series 6
Phoenix Century Managed Pension Series 7
Phoenix Century Managed Pension Series 10
Phoenix Century Managed Pension Series 12
Phoenix Century Managed Pension Series C
Phoenix Century UK Managed Pension Series OM1
Phoenix Century UK Managed Pension Series OM2
Phoenix Century UK Managed Pension Series OM3

Private assets are types of investments that aren’t listed or traded on public markets. For example, they can include, but aren’t limited to, private companies or commercial property.

Having a mix of investments can help to spread risk and improve your potential for positive returns

Your fund already invests in a mix of traditional investments. We’ve added private assets to try and provide better returns for you over the long-term.

Increasing the mix of investments like this is known as diversification.

We’ll start by including about 2.5% of private assets in the managed funds. We’ll aim to gradually increase this over time, potentially rising to about 5%.

Importantly, the broad risk level of your fund won’t change.

We want you to benefit from the diversification and investment return opportunities that private assets can offer. That’s why we’re making these changes.

 

How the performance fee could work

As an example, let’s assume you’ve £40,000 invested in the managed fund.

£1,000 (2.5%) of this is invested in private assets.

  • The private assets grow by 10%, so are now worth £1,100.
  • Since the growth was over 5.9%, the performance fee would be based on the remaining 4.1%.
  • So in this simplified example the fee would be £8.20.

This is a simple example and shouldn’t be relied on for any investment decisions.

If you’ve been charged a performance fee, you’ll see it included where you usually see your charge information.

Read about the different types of fees and charges.

 

Need advice?

If you’re not sure what to do, you might want to get independent professional advice. If you don’t have an adviser visit MoneyHelper for further information.

Contact us

If you have any questions you need to ask about this, please contact us.