DC Investment Choices - Full Fund Details

Full Fund Details

How are the fund managers chosen?

The managers of the funds available via BlackRock may change over time. You can get further information about them by requesting the fund factsheets for the asset classes you wish to consider investing in. These are also online.

What are Fund management styles?

There are two styles of fund management: active and passive. Passive funds are also known as index-tracking funds.

With active funds, the fund manager aims to outperform a fund's benchmark by investing in particular stocks or shares, which research suggests are a good investment. A benchmark is the means by which a fund's performance is measured. For example, the benchmark for a UK Equity Fund could be the FTSE All-Share Index (an index that measures the overall performance of all the shares on the London Stock Exchange).

Funds that are managed passively invest in a particular index, for example, the FTSE All-Share Index. With passive fund management, the aim is to track the performance of the index as accurately as possible - hence 'index-tracking' funds. By investing in all shares that make up an index, there is less risk of one poorly performing share affecting the overall performance of the fund.

What is the AMC?

There is an Annual Management Charge (AMC) of the fund value (the amount of which depends on the fund chosen) that covers the administration and investment managers fees for your account.

AMCs are subject to change and you will be notified in advance of any changes.

Who pays it?

For active Plan members, the Company pays the AMCs on your chosen investment options for your Core Contributions and Matching Credits. For AVC contributions, for Plan members who are no longer making regular contributions and for deferred Plan members the AMCs are deducted from your account.

Full Fund Details

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Asset Class: UK and overseas equities
Risk level: Medium to High AMC charge: 0.40% a year
Description: Invests mainly in UK equities (around 50%) and overseas equities (around 50%). The overseas equities are split between geographical regions in fixed percentages. The fund aims to track the return of its benchmark.
Benchmark: 50% FTSE All Share Index;
17.5% FTSE World North America Index;
17.5% FTSE World Europe (ex UK) Index;
8.75% FTSE World Japan Index;
6.25% FTSE World Asia Pacific (ex Japan) Index
Risk profile: This fund provides the high-performance potential of equities. The exposure to the UK market may protect against UK inflation. At the same time, the exposure to overseas' markets ensures that performance is not wholly tied to the fortunes of the UK economy. However, you should be aware that equity returns, over the short-term, can fluctuate significantly both up and down. You should also be aware that the overseas assets in this fund are not denominated in sterling - which means that the value of the fund may be affected by changes in exchange rates.
Suitability: This fund is suitable, if you are many years from retirement, to build up your savings over the long term.
Asset Class: Gilts
Risk level: Low AMC charge:0.40% a year
Description: Invests mainly in index-linked UK government bonds and aims to produce a return in line with its benchmark.
Benchmark: FTA Over 5 Year Index Linked Index.
Risk profile: The volatility of index-linked gilts is usually less than that of equities and historically they have produced lower returns over the long-term.
Suitability: This fund can be used to help protect against rises in the price of purchasing annuities and is therefore generally suitable for members nearing retirement and/or for members with a low risk profile.
Asset Class: Cash
Risk level: Very low AMC charge: 0.40% a year
Description: Invests with building societies, banks and other leading institutions and aims to produce a return in excess of its benchmark.
Benchmark: 7 Day London Interbank Bid (LIBID) Rate
Risk profile: This fund aims to protect the value of your investment and is not expected to fall in value but this is not guaranteed. However, the return achieved on cash investments may not be as high as other types of investment and may not keep pace with inflation over the long-term.
Suitability: This fund is generally suitable for members who are nearing retirement and want to protect the part of their account that can be taken as tax-free cash at retirement.
Asset Class: UK equities
Risk level: Medium to High AMC charge: 0.40% a year
Description: Invests mainly in equities within the FTSE All Share Index and aims to track the return of its benchmark.
Benchmark: FTSE All Share Index
Risk profile: This fund provides the high-performance potential of equities while spreading the risk of any one share adversely affecting the overall investment. However, you should be aware that equity returns, over the short-term, can fluctuate significantly both up and down.
Suitability: This fund is generally suitable, if you are many years from retirement, to build up your savings over the long term.
Asset Class: Overseas equities
Risk level: High AMC Charge: 0.50% a year
Description: Invests mainly in overseas equities and aims to maintain an asset distribution close to that of the average overseas equity distribution in the CAPS Pooled Balanced Funds Survey with the aim of delivering long-term performance which is close to that of the overseas equity return of the average UK discretionary pension fund.
Benchmark: Quarterly constituent sector index returns applied to the overseas proportion of CAPS Pooled Balanced Fund distribution.
Risk profile: This fund provides the high-performance potential of equities while spreading the risk of any one share adversely affecting the overall investment. However, you should be aware that equity returns, over the short-term, can fluctuate significantly both up and down. You should also be aware that the assets in this fund are not denominated in sterling - which means that the value of the fund may be affected by changes in exchange rates.
Suitability: This fund is generally suitable, if you are many years from retirement, to build up your savings over the long term.
Asset Class: Overseas equities
Risk level: High AMC charge: 0.40% a year
Description: Invests mainly in equities within the FTSE W US Index and aims to track the return of its benchmark.
Benchmark: FTSE World North America Index
Risk profile: This fund provides the high-performance potential of equities while spreading the risk of any one share adversely affecting the overall investment. However, you should be aware that equity returns, over the short-term, can fluctuate significantly both up and down. You should also be aware that the assets in this fund are not denominated in sterling - which means that the value of the fund may be affected by changes in exchange rates.
Suitability: This fund is generally suitable, if you are many years from retirement, to build up your savings over the long term.
Asset Class: Overseas equities
Risk level: High AMC charge: 0.45% a year
Description: Invests mainly in equities within the FTSE World Pacific (ex Japan) Index and aims to track the return of its benchmark.
Benchmark: FTSE World Asia Pacific (ex Japan) Index
Risk profile: This fund provides the high-performance potential of equities while spreading the risk of any one share adversely affecting the overall investment. However, you should be aware that equity returns, over the short-term, can fluctuate significantly both up and down. You should also be aware that the assets in this fund are not denominated in sterling - which means that the value of the fund may be affected by changes in exchange rates.
Suitability: This fund is generally suitable, if you are many years from retirement, to build up your savings over the long term.
Asset Class: Overseas equities
Risk level: High AMC charge: 0.45% a year
Description: Invests mainly in equities within the FTSE World Japan Index and aims to track the return of its benchmark.
Benchmark: FTSE World Japan Index
Risk profile: This fund provides the high-performance potential of equities while spreading the risk of any one share adversely affecting the overall investment. However, you should be aware that equity returns, over the short-term, can fluctuate significantly both up and down. You should also be aware that the assets in this fund are not denominated in sterling - which means that the value of the fund may be affected by changes in exchange rates.
Suitability: This fund is generally suitable, if you are many years from retirement, to build up your savings over the long term.
Asset Class: Overseas equities
Risk level: High AMC charge: 0.45% a year
Description: Invests mainly in equities within the FTSE World Europe (ex UK) Index and aims to track the return of its benchmark.
Benchmark: FTSE World Europe (ex UK) Index
Risk profile: This fund provides the high-performance potential of equities while spreading the risk of any one share adversely affecting the overall investment. However, you should be aware that equity returns, over the short-term, can fluctuate significantly both up and down. You should also be aware that the assets in this fund are not denominated in sterling - which means that the value of the fund may be affected by changes in exchange rates.
Suitability: This fund is generally suitable, if you are many years from retirement, to build up your savings over the long term.
Asset Class: Multi-asset (Equities, Bonds & Cash)
Risk level: Medium AMC charge: 0.60% a year
Description: Invests mainly in equities and to a lesser extent government securities, cash and other fixed interest investments, in the UK and overseas. The Fund aims to produce a return in excess of its benchmark. The Benchmark will evolve over time to reflect market, industry and internal views and developments as to an appropriate asset mix for a broadly invested fund.
Benchmark: Fixed Weight Benchmark (as at 31 December 2008):
  • 55% UK equities;
  • 8% US equities;
  • 8% Europe ex UK equities;
  • 4% Japan equities;
  • 4% Pacific ex Japan equities;
  • 1% Emerging Market equities;
  • 10% UK Government Bonds;
  • 5% Overseas Bonds;
  • 5% Cash
Risk profile: This fund provides some of the high performance potential of UK and overseas equities, while spreading the risk of stock market volatility by investing in UK and overseas corporate bonds. This diversification can help to limit the risks associated with exposure to a single asset class. You should be aware that some of the assets in this fund are not denominated in sterling - which means that the value of the fund may be affected by changes in exchange rates.
Suitability: This fund is generally suitable, if you are many years from retirement, to build up your savings over the long term.
Asset Class: UK and overseas equities
Risk level: Medium to High AMC charge: 0.60% a year
Description: Invests mainly in UK equities (around 50%) and overseas equities (around 50%). The overseas equities are split between geographical regions with a fixed weight benchmark. The Fund aims to produce a return in excess of its benchmark.
Benchmark: 50% FTSE All Share Index;
50% Fixed Overseas Weights:
  • 17% Continental Europe;
  • 17% North America;
  • 8% Japan;
  • 7% Pacific Basin;
  • 1% Emerging Markets
Risk profile: This fund provides the high-performance potential of equities. The exposure to the UK market may protect against UK inflation. At the same time, the exposure to overseas' markets ensures that performance is not wholly tied to the fortunes of the UK economy. However, you should be aware that equity returns, over the short-term, can fluctuate significantly both up and down. You should also be aware that some assets in this fund are not denominated in sterling - which means that the value of the fund may be affected by changes in exchange rates.
Suitability: This fund is generally suitable, if you are many years from retirement, to build up your savings over the long term.
Asset Class: UK equities
Risk level: Medium to High AMC charge: 0.60% a year
Description: Invests mainly in UK equities and aims to produce a return in excess of its benchmark.
Benchmark: FTSE All Share Index
Risk profile: This fund provides the high-performance potential of equities while spreading the risk of any one share adversely affecting the overall investment. However, you should be aware that equity returns, over the short-term, can fluctuate significantly both up and down.
Suitability: This fund is generally suitable, if you are many years from retirement, to build up your savings over the long term.
Asset Class: Gilts and Corporate Bonds
Risk level: Low AMC charge: 0.50% a year
Description: Invests mainly in UK government and corporate bonds and may also invest in other fixed interest securities and currencies hedged into Sterling. The Fund aims to produce a return in excess of its benchmark.
Benchmark: FTA All Stocks Gilts Index
Risk profile: Corporate Bonds and Gilts are usually less volatile than equities but have historically produced lower returns over the long-term. You should be aware that their prices will vary and can fluctuate both up and down over the short-term.
Suitability: This fund can be used to help protect against rises in the price of purchasing annuities and is therefore generally suitable for members nearing retirement and/or for members with a low risk profile.
Asset Class: Gilts
Risk level: Low AMC charge: 0.40% a year
Description: Invests mainly in long-dated UK government bonds and aims to produce a return in line with its benchmark.
Benchmark: FTA Over 15 Year Gilts Index
Risk profile: The volatility of gilts is usually less than that of equities, although historically they have produced lower returns over the long-term. You should be aware that their prices will vary and can fluctuate both up and down over the short-term.
Suitability: This fund can be used to help protect against rises in the price of purchasing annuities and is therefore suitable for members nearing retirement and/or for members with a low risk profile.
Asset Class: Property
Risk level: Medium AMC charge: 1.00% a year
Description: The Fund has a diversified exposure to a range of UK commercial property assets such as offices, shopping centres, retail warehouse parks and industrial estates. The Fund gains its exposure to these assets by investing in a number of underlying pooled property funds.
Benchmark: HSBC/AREF Pooled Property All Balanced Funds Index
Risk profile: This fund provides the high-performance potential of property investment, while spreading the risk of any one property adversely affecting the overall return. However, you should be aware that property returns, over the short-term, can fluctuate both up and down and that the costs associated with maintaining and running property investment can be high.
Suitability: This fund is generally suitable, if you are many years from retirement, to build up your savings over the long term.
Asset Class: Overseas equities
Risk level: High AMC charge: 0.85% a year
Description: Invests in stocks and shares quoted on major stock markets of the world, excluding the UK. The Fund aims to produce a return in excess of its benchmark.
Benchmark: 33.3% FTSE AW Europe ex UK Index;
33.3% FTSE AW North America Index;
33.3% FTSE AW Asia Pacific Index
Risk profile: This fund provides the high performance potential of equities. By investing in the world's stock markets, the fund reduces the risk of any one country adversely affecting overall investment performance. However, you should be aware that, over the short-term, equity returns can fluctuate significantly both up and down. You should also be aware that the assets in this fund are not denominated in sterling, which means the value of the fund may be affected by changes in exchange rates.
Suitability: This fund is generally suitable, if you are many years from retirement, to build up your savings over the long term.

BlackRock

If you have any questions about pensions please contact the pensions administrators:

Mitchells & Butlers Pensions,
BlackRock Pensions Administration Centre,
PO Box 704,
Peterborough,
PE1 1WL.

Telephone: 01733 353416
Email: uk.ops@blackrockpensions.co.uk

An image of the interior of a Mitchells & Butlers pub.