Investment options

Investment options

Our workplace pension gives your employees two main choices over how to invest the money that goes into their pension. They can use our specially designed default investment option, or they can take their pick from our range of over 200 investment funds.

Whatever an employee decides to do, they can always change their mind later. Members of your scheme can alter their investment choices online at any time – and there’s no charge for doing so.

Option 1: our default investment option

The default investment option for our workplace pension is known as ‘Future Focus 2 Drawdown’, and has been specially developed to meet the desires and needs of the majority of employees.

When an employee becomes a member of your scheme, their money will automatically be invested into this investment option. It’s an ideal choice for ‘hands off’ investors, as we handle all the investment decisions involved.

Download our guide to Future Focus 2 Drawdown (PDF 1.0MB)

How does it work?

Our default investment option consists of three separate funds, and there are three stages to it.

As a scheme member gets closer to their retirement date, we automatically move their money into lower risk funds. We do this to reduce the chances of any sudden dips in value just before they retire.

A visual respresentation of how investments are moved between funds as you approach retirement age.

Stage 1: This is the growth stage, when all the scheme member’s money will be invested into the Aviva Diversified Assets Fund II (PDF 0.4MB). The aim of this stage is to deliver a return on their investment.

Stage 2: When the scheme member gets to 10 years from their chosen retirement date, we gradually start moving their money into a lower risk fund, the Aviva Diversified Assets Fund I (PDF 0.4MB).

Stage 3: Three years before their retirement date, we start moving money into the Aviva Deposit Fund (PDF 0.2MB), as well as continuing to move it into the Aviva Diversified Assets Fund I. We do this to help protect the value of the tax-free cash lump sum the employee can take from their pension plan – and to continue reducing the risk of sudden, significant drops in value.

By the time your employee reaches their chosen retirement date 25% of their pension pot will be invested in the Aviva Deposit Fund and 75% will be invested in the Aviva Diversified Assets Fund I.

Note: as the money is moved automatically on set dates, it may not be moved at a time that gives the scheme member the best return on their investment.

What charges will employees have to pay?

There is no charge for using this investment approach. However, your employees will still have to pay an employee fund charge to cover the cost of us running your scheme. The most this can be is just 0.75% a year.

More about costs and charges

What’s the risk/return rating?

The overall risk/return rating for Future Focus 2 Drawdown is 3 (medium). If you’d like to know more about what this means, please see our risk/return ratings.

Option 2: choose from our range of over 200 funds

For employees who’d like to choose for themselves where their money is invested, we offer a range of over 200 investment funds.

What funds are available?

We offer funds covering all the investment sectors employees are likely to want access to. From global equity and emerging markets to property, mixed investments and everything in between.

Our range features 16 tracker funds, 13 ethical and responsible funds, and one Sharia fund (which doesn’t invest in areas prohibited by Islamic Sharia law). A number of multi-manager funds are also available.

Altogether over 30 fund management houses are represented, including many of the top names in investment management – including Aberdeen, Invesco Perpetual, Jupiter and Schroeders.

Where can employees research these funds?

Our online fund centre includes comprehensive information to help your employees make better, more informed investment decisions. It includes risk ratings, performance information and fund factsheets for every fund we offer.

Please note that the information we provide is not financial advice. If your employees need help with their investment decisions, we recommend they speak to a financial adviser.

Visit our fund centre

What charges will employees have to pay?

All fund charges are disclosed upfront in our online fund centre and in individual fund factsheets. Your employees can also check what charges they’re paying by logging into their free MyAviva account at any time.

All charges are also explained in the statements we send scheme members once a year.

Online management puts your employees in control

Your employees can change their investment choices online at any time through their free MyAviva account. There are no charges for switching funds, and they can make as many changes as they wish. So whatever they decide to do, they’re firmly in control.

More about MyAviva

Comprehensive governance

Looking after our scheme members’ pension pots is hugely important to us. Which is why we take investment governance extremely seriously.

Governance of our default investment approach

The government has issued detailed guidance explaining how default investments used for automatic enrolment ought to be governed. With our workplace pension our fund governance team handles all of this, so you don’t have to.

  • We will ensure the investment approach is suitable for automatically enrolled employees and meets regulatory standards.
  • We will review the approach at least every three years to make sure it’s still suitable.
  • We will review the performance of underlying funds to check whether they’re performing in line with their objectives.
  • We will replace any funds that are not performing as they should.
  • We will provide members of your scheme with information about the default investment approach.

Governance of our full fund range

Our expert fund governance team closely monitors all our investment funds to ensure we only offer high quality funds. If any aren’t performing as we’d expect, or if we feel they no longer offer value for money, we place them on a watch list – and remove them if they don’t improve.

Independent governance committee for added peace of mind

Unlike some other pension schemes, our workplace pension is overseen by an independent governance committee (IGC). Chaired by Law Debenture’s Inder Dhingra, the IGC’s role is to ensure our scheme offers excellent value for money for all scheme members.

About our independent governance committee

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