Defined Contribution Section

From 1 October 2012, there will be some changes to the investment choices offered by The Church of England Pensions Board (the Board) to members of the Defined Contributions section of the Church Administrators Pension Fund.

Following a thorough review carried out by the Board with the assistance of its investment advisers, Legal & General (L&G) has been chosen to continue as the investment manager.  L&G have a solid track record and offer the type of investment funds the Board wants to make available to members at reasonable cost.

What can I invest in?

There are three basic approaches that you can take: you can use the default investment choice (known as the 'lifestyle option'), you can choose an ethical version of this (known as the 'ethical lifestyle option'), or you can choose one or more funds from the list below (choosing your own funds is known as 'freestyle' investment).

What are the changes from 1 October 2012?

The major changes are:

  • The current balanced equity fund invests 60% of contributions in UK equities (company shares) and 40% in overseas equities.  The Board has decided that this should be replaced with an equity fund that invests 30% in UK equities and 70% in overseas equities as this provides a wider investment spread than the current fund and reduces the investment risk to you;
  • The Board currently provides only one 'lifestyle' option and that does not include an 'ethical' investment option.  The Board has arranged for an 'ethical' version of the lifestyle option to be available for members who would prefer that approach;
  • The Board has introduced an investment fund that enables members to invest in corporate bonds.

The revised investment options will be:

Fund type Fund Name

Equities (Ethical)
UK ethical fund L&G Ethical UK Equity Index Fund
Global ethical fund L&G Ethical Global Equity Index Fund

Equities (Unrestricted)   
UK equities L&G UK Equity Index Fund
Global equities L&G Overseas Equity Consensus Index Fund
Balanced equity fund L&G Global Equity Market Weights (30:70) Index Fund

Gilts and Bonds
Index-linked gilts L&G Over 5 Year UK Index-Linked Gilts Fund
Fixed interest gilts L&G Over 15 Year Gilts Index Fund
Corporate bonds L&G AAA-AA-A Corporate Bond All Stocks Index Fund

Property
Property fund L&G Managed Property Fund

Cash
Cash fund L&G Cash Fund

 

 

 

 

 

 

 

 

 

 

 

 

L&G has a client site which contains details for the existing funds and will include the new funds after 1 October 2012.  You can access the L&G client site at www.lgim.com/clientsite.  Details of the username and password are available from the Pensions Board.

Fact sheets for each fund are available by following the links above and an investment guide is also available to download.

If you have any questions please Contact the Pensions Department.