The Lifecycle Strategy Service is a tailored investment option designed to reflect an Investor’s personal circumstances and attitude to risk.
The Investor choses a target age (could be retirement or a specific date in the future) and a lifecycle strategy.
Three different lifecycle strategies are offered, each with a different risk profile:
- Dynamic Lifecycle Strategy
- Balanced Lifecycle Strategy
- Cautious Lifecycle Strategy
To begin with, the Dynamic Strategy will invest mainly in higher risk assets, the Cautious Strategy will invest mainly in low risk assets and the Balanced Strategy somewhere in the middle. As the Investor nears their target age, the Service automatically adjusts the chosen strategy’s asset allocation to lower risk assets, so that by the target age the Investor will be invested in liquid, low risk investments. To achieve this, the risk profie is rebalanced once a year, on the Investor’s birthday.
The Lifecycle Strategy Service utilises the Lifecycle Fund Range and the Deposit Administration Funds to enable the Fund Manager to successfully implement the three Strategies above.
The Lifecycle Fund Range is a range of unit-linked Funds (cash, bond, equity, and international equity), of various risk profiles. The Lifecycle Fund Range cannot be invested in directly.
To find out more about your risk profiles please click on GW Risk Profiler.