Volatility Protection Strategy

The Trustees have approved an alternative default investment strategy suitable for members who wish to achieve inflation-beating real returns over the medium to long term, but who are particularly concerned about protecting against significant short term investment losses. The strategy will most likely result in lower returns than the Lifestage Programme over the long term as a consequence of the implicit cost of the underlying guarantees and lower effective equity exposure. Nonetheless, the Trustees recognise that such a strategy is suitable for many members – particularly those members who are not financially sophisticated and who might not appreciate that a high equity exposure inevitably implies some risk of capital loss over the short term.

The Trustees review the investment strategy of the Volatility Protection Strategy continually, and will make periodic changes to the underlying investments in line with the objectives of the strategy.

Click here to download the Volatility Protection fact sheet.