Stakeholder Pension

Aviva's Stakeholder Pension offers you a wide variety of pension funds in which to invest your pension payments. You'll need to choose a fund or funds that reflect your attitude to risk and return. And, you can switch between funds to accommodate any changes in your personal circumstances.

You can choose your funds - or let us help you

With a Stakeholder Pension, you can either select the fund(s) that you want to invest in yourself or, by not making an active fund selection, choose to invest your money using our Balanced Managed Lifestyle Strategy. Taking the latter option will mean that all payments will be invested in the Balanced Managed Fund - which in turn invests in a mix of assets.

Five years before retirement we will gradually move your investment into the Aviva Retirement Protection Fund and the Aviva Deposit Fund on a monthly basis. Full details are provided in our 'Balanced Managed Lifestyle Strategy' leaflet. At your chosen retirement date, 75% of your pension fund will be invested in the Retirement Protection Fund and 25% will be invested in the Deposit Fund.

In certain circumstances we may need to delay payments, transfers and switching funds as outlined in your plan terms and conditions. This could be as a result of adverse market conditions or where it would lead to the unfair treatment of other investors. The delay may be up to one month for most funds or up to six months if the fund you're invested in cannot be easily converted to cash. This includes: a property fund or a fund that's fully or partly invested in the form of lands or buildings. After such a delay the unit price used will be the price applicable at the end of the deferred period.

Bear in mind that the value of a pension fund can go down as well as up and you might get back less than you invested. The level of risk/return depends on the fund(s) you're invested in - the higher the potential for growth, the greater the risk.

The risks associated with different investments

Risk is one of the most important factors when it comes to investing your money for the future. The key is to find the right balance between the amount of risk you're willing to take and the potential return you're likely to get over your investment period.

If you have a long time before you retire, you might be prepared to take a bigger risk, but as you get closer to retirement you might want to limit the amount of risk you take. With the help of your financial adviser, careful investment planning can help you to manage your risk/return effectively.

So what is meant by risk? Most funds carry the risk that their value could drop below the original value you invest at. This risk can be measured by the ‘volatility' of the fund, or the amount of ‘ups and downs' in its value. Typically, the more the value of an investment fund fluctuates, the higher the potential may be for gains or losses - often referred to as its risk/return. Understanding your attitude to risk/return is important.

If you're not sure you know the level of risk/return you're comfortable with, our fund selector will help you work out your own risk/return profile and identify which funds might be suitable for you.

Your choice of pension investment funds

You'll see listed below all the funds available for you to invest in with an Aviva Stakeholder Pension. To help you make your choice, click on the fund name to read the fund description and associated risk/return profile.

* When funds invest in overseas financial markets, the values will go up and down in line with movements in currency exchange rates, as well as the changes in the values of the funds' holdings.

Low risk/return funds

Aviva Deposit Fund

The fund aims to protect capital by investing typically in deposit investments and similar assets with governments, first class banks and major companies. Although the fund aims to provide a lower risk return, the value can fall.

Medium to low risk/return funds

Aviva BlackRock Aquila Corporate Bond Index Tracker Fund

The fund aims to achieve a return consistent with the iBoxx £ Non-Gilts Index. This index covers the broad spectrum of investment grade corporate bonds in issue.

Aviva Corporate Bond Fund

To provide a long-term total return above that available on UK Government securities through investment in corporate bonds and other fixed interest investments.

Aviva Gilt Fund

To provide a reasonably good return mainly through investment income with the prospect of some capital growth. The Fund will be invested mainly in British Government Stocks.

Aviva Index-linked Gilt Fund

To provide long-term capital growth through investment in British Government index-linked securities, which have interest and redemption payments linked to the Retail Price Index.

Aviva Defensive Managed Fund

To provide a reasonable return through capital growth and investment income, with a low to medium level of risk. The Fund invests in a wide range of assets to spread and control risk by using any other appropriate Aviva funds.

Aviva Stakeholder With-Profit Fund

Our With-Profit Fund offers the potential for returns that are higher than those received from a bank or building society average savings account. Although the fund has no fixed term, you should be prepared to invest for at least 5 to 10 years. The value of a with-profits investment can move up and down which means you may get back less than you put in. However, the main difference between with-profits and other more volatile investments is that the value is smoothed over the long term. Bonus rates are confirmed at least once a year. Future bonuses may be higher or lower and cannot be guaranteed. There could be circumstances when we apply a market value reduction if you move out of the With-Profit Fund. This can happen following a large or sustained fall in stock markets or when investment returns are below the level we would normally expect. A market value reduction is made to reflect a fair value of the fund for all investors in a with-profit fund, and, if one is applying, may mean that the value of your investment is lower than expected. We do not apply a market value reduction if you die or if you take your benefits at your originally selected retirement date. However, we may apply a market value reduction at your originally selected retirement date if any of the following apply:

• Your pension policy is less than 5 years old at the originally selected retirement date
• You make a new single payment within 5 years of the originally selected retirement date
• You increase your regular payments (other than the automatic increases which have already been agreed by us) within 5 years of the originally selected retirement date
• You move any money from another fund into a with-profit fund within 5 years of the originally selected retirement date

Further details about the With-Profit Fund and Market Value Reductions are available in the 'A guide to your with-profits investment and how we manage the fund - for customers investing through pensions', available at http://www.aviva.co.uk/savings-and-investments/with-profits/useful-guides.html.

Aviva Sustainable Future Corporate Bond Fund*

To produce a high level of investment income through diversified investment principally in sterling denominated fixed interest securities issued by corporates, governments and supranational institutions. Limited investment in non-sterling denominated fixed interest securities may be made from time to time. All investments will be expected to conform to our social and environmental criteria.

Medium risk/return funds

Aviva BlackRock Aquila Over 15 Years Gilt Index Tracker Fund†

This fund invests in UK government fixed income securities (gilts) that have a maturity period of 15 years or longer. The fund aims to achieve a return consistent with the FTSE UK Gilts Over 15 Years Index, which is widely regarded as the benchmark for UK pension fund investment in the longer dated end of the UK gilt market.

Aviva Retirement Protection Fund†

The fund aims to track the performance of the Financial Times Actuaries Government over 15 years Gilt Index before the deduction of management fees and allowances for taxes and other expenses.

Aviva BlackRock Aquila Consensus Fund

The fund aims to produce consistent investment performance in line with the average UK pension fund and to avoid any violent swings between the upper and lower ends of the pension fund performance league tables.

Aviva Property Fund

To provide a return from a mixture of rental income and capital growth The fund will mainly invest in commercial property . A proportion of the fund may also invest in indirect property investments, including quoted property trusts and unregulated collective investment schemes, which may include gearing. Investments in these schemes can be up to a maximum, set currently at 20% of the fund value of which 10% may be geared.

Aviva Global Bond Fund*

To provide a reasonably good return from a mixture of investment income, capital growth and currency gains. The Fund will be invested mainly in fixed interest securities quoted on the world's major financial markets.

Aviva Cautious Managed Fund

To provide a good return through a combination of capital growth and investment income. It invests in a wide range of assets to spread and manage risk by using any other appropriate Aviva funds.

Aviva Balanced Managed Fund

To provide a good return through a combination of capital growth and investment income. It invests in a wide range of assets to spread and manage risk by using any other appropriate Aviva funds.

Aviva Managed High Income

To provide a high level of income by investing in a diversified range of corporate and government bonds issued both in the UK and internationally.

Medium to high risk/return funds

Aviva Sustainable Future Managed Fund*

To provide long-term capital appreciation and income through diversified investment within and across global securities markets. Allocations to bonds, equities and cash will vary over time. Equity selections will be based on price and long term total return prospects. All investments will be expected to conform to our social environment criteria.

Aviva BlackRock Aquila UK Equity Index Tracker Fund†

This fund invests in the shares of UK companies and aims to achieve a return that is consistent with the return of the FTSE All-Share Index. This index is widely regarded as the benchmark for UK pension fund investment in shares of companies in the UK.

Aviva BlackRock Aquila 50:50 Global Equity Index Tracker Fund*

This fund invests primarily in equities, both in the UK and overseas markets. The fund has approximately 50% invested in the shares of UK companies. The remaining 50% is invested in overseas companies, split equally between the US, Europe excluding the UK, and the Far East. The fund aims to provide returns consistent with the markets in which it invests and provides broad exposure to countries around the world.

Aviva BlackRock Aquila 60:40 Global Equity Index Tracker

To invest in equities of the UK and overseas markets, with approximately 60% in the UK and 40% overseas. The fund aims to provide returns broadly consistent with the markets in which it invests.

Aviva BlackRock Aquila 70:30 Global Equity Index Tracker

The fund aims to perform in line with the weighted benchmark of 70% UK equities and 30% Overseas equities as measured by the CAPS consensus weightings.

Aviva UK Index Tracking Fund^†

To track the total return of the FTSE All-Share Index.

Aviva UK Equity Fund

To provide a return from a mixture of investment income and capital growth. The Fund will be invested mainly in UK shares.

Aviva UK Ethical Fund

To provide long-term capital growth and investment income by investing mainly in UK shares. All investments must meet our social and environmental criteria.

Aviva Sustainable Future UK Growth Fund

To produce long-term capital appreciation through investment principally in UK equities based on price and prospects of above average earnings growth. Limited investment in UK bond markets may be made from time to time. All investments will be expected to conform to our social and environmental criteria.

Aviva Global Equity Fund*

To provide a relatively high return from a mixture of investment income and capital growth from a portfolio normally comprising of shares spread across the world's financial markets.

Aviva International Index Tracking Fund*†

To track the performance of the FTSE World (ex UK) Index by investing mainly in international equities.

Aviva BlackRock Aquila US Equity Index Tracker Fund*†

This fund invests in the shares of US companies and aims to achieve a return that is consistent with the return of the FTSE All-World USA Index. This index is widely regarded as the benchmark for UK pension fund investment in shares of companies in the US.

Aviva US Equity Fund*

To provide a return mainly from capital growth. The Fund will be invested mainly in North American shares.

Aviva World Leaders

To provide long-term capital growth through investment in a wide range of UK and international shares.

High risk/return funds

Aviva Sustainable Future European Growth Fund*

To provide long-term capital appreciation through diversified investment principally within and across European equity markets. Equity selections will be based on price and long term total return prospects. Limited investment in European bond markets may also be made. All investments will be expected to conform to our social and environmental criteria.

Aviva European Equity Fund*

To provide long term capital growth through investment in continental European shares.

Aviva BlackRock Aquila European Equity Index Tracker Fund*†

This fund invests in the shares of companies in Europe and aims to achieve a return that is consistent with the return of the FTSE All-World Developed Europe ex-UK Index. This index is widely regarded as the benchmark for UK pension fund investment in European company shares.

Aviva BlackRock Aquila Japanese Equity Index Tracker Fund*†

This fund invests in the shares of Japanese companies and aims to achieve a return that is consistent with the return of the FTSE All-World Japan Index. This index is widely regarded as the benchmark for UK pension fund investment in shares of companies in Japan.

Aviva BlackRock Aquila Pacific Rim Equity Index Tracker Fund*†

This fund invests in the shares of companies in the Pacific Rim and aims to achieve a return that is consistent with the return of the FTSE All-World Developed Asia Pacific ex-Japan Index. This index is widely regarded as the benchmark for UK pension fund investment in shares of companies in the Pacific Rim.

Aviva Pacific Equity Fund*

To provide a return mainly from capital growth. The Fund will be invested mainly in Far Eastern and Pacific Basin shares.

Aviva Sustainable Future Global Growth*

To produce long-term capital appreciation through diversified investment principally within global equity markets. Allocations to individual markets will vary over time. Equity selections will be based on price and long term total return prospects. Limited investment in global bond markets may be made. All investments will be expected to conform to our social and environmental criteria.

Aviva Sustainable Future Absolute Growth Fund*

To provide long term capital appreciation through selective investment principally in global equities based on price and prospects of above average earnings growth. Investments may on occasions be limited to a single country. Limited investment in global bond markets may be made from time to time. All investments will be expected to conform to our social and environmental criteria.

Aviva BlackRock Aquila Overseas Equity Consensus Index Tracker

This fund invests in the shares of overseas companies, (those of European, Japanese, other Far Eastern, and US markets) according to the weightings of the average UK pension fund. Within each of those markets, the fund aims to generate returns consistent with those of each country's primary share market.

* When funds invest in overseas financial markets, the values will go up and down in line with movements in currency exchange rates, as well as the changes in the values of the funds' holdings.

† FTSE International Limited does not sponsor, endorse or promote these funds. All copyright in the index values and constituent lists vest in FTSE International Limited.

Call us on 0800 092 7869**

For more information, a quote or a helping hand with your application, just give us a call.

Any advice given will relate only to the products of Aviva

** Lines are open Monday to Friday 8am - 9pm, Saturday 9am - 5pm and Sunday 10am - 4pm. Calls may be recorded and/or monitored.

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