Investments

The Mastertrust offers a range of investment choices to help you grow your money

The Lifecycle Strategy has been created by the Trustee and is the ‘do it for me’ investment option.

It automatically invests in higher risk funds while you’re younger to give your Account the best chance to grow. Your investments are then gradually moved to lower risk funds the closer you get to retirement to protect the value of your Account.

The Scheme has two different Lifecycle Strategies to choose from: Drawdown and Annuity. Your investments switch to different funds as you approach retirement depending on whether you want to use your Account for drawdown or to buy an annuity (see the retirement options pages to find out more about drawdown and annuities).

The charts below show how your investments are switched as you move towards retirement.

The AXA Drawdown Lifecycle Strategy (the default strategy)

This strategy has been specifically designed for AXA. Under this strategy you will be invested in equites while you are more than 15 years from retirement. Between 15 and 8 years from retirement your savings will gradually move into the AXA Diversified Fund (which invests in a range of assets to diversify your account and protect against market volatility).

When you are less than 5 years from retirement, this strategy gradually moves more of your money into cash. This will further reduce volatility and provide a level of capital protection.

The Annuity Lifecycle Strategy

Under this strategy, you will be invested in equites while you are more than 25 years from retirement. From 25 years before your retirement your savings will gradually begin to move into the LifeSight Diversified Growth Fund to diversify your account and protect against volatility

When you are 10 years from retirement, this strategy begins to switch your investments to bond funds and cash funds, which should help protect the buying power of your Account if you want an annuity.

You can use the Investment Guide to help you think about which of these strategies is right for you.

Please note that your default retirement age is 65. If you’re invested in a Lifecycle Strategy and you’re planning to retire at a different age then you can change your target retirement age. From 15th December, you can log in to your account with LifeSight to do this.

Investment FAQs

Investments can be hard to get to grips with, there’s more information to help you in the investment FAQs

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