Login .a{fill:none;stroke:currentColor;stroke-linecap:round;stroke-linejoin:round;stroke-width:1.5px} Home About us Our investment strategy Diversified Growth Fund Diversified Growth Fund Our Diversified Growth Fund (DGF) is designed to provide stable long-term growth for pension savings in the NOW: Pensions Trust (‘the Scheme’). How we use the DGF The DGF forms part of our ‘pension saving journey’ for Scheme members. For most of our members’ working lives we invest their pension savings in the Diversified Growth Fund (DGF) to help them grow as much as possible. Fifteen years before members’ planned retirement age, we gradually switch pension savings to the Retirement Countdown Fund (RCF), which is designed to protect them from falling in value before they’re due to be turned into retirement benefits. Journey Path to retirement At planned retirement age, 80% is in the RCF and 20% in the DGF. We call this the ‘Journey Path’. Unless members tell us otherwise, we assume their planned retirement date is their State Pension age. What the DGF invests in The DGF is designed to provide stable growth, above the rate of inflation, without too much volatility (ups and downs in value) over the long term. To achieve this it spreads money across various groups of investments that tend to perform differently in a range of economic conditions, an approach known as diversification. As part of our recent strategy review, we: raised the DGF’s growth target by allocating more money to ‘‘return-seeking investments’, and increased the number of investment groups the DGF uses for diversification from four to five. The table below shows the five investment groups. The investments are managed across these groups to deliver the return, risk and responsible investing (RI) objectives. Find out more about our approach to RI. Equity Interest Inflation Income Other Equities (shares) – including developed market equity, emerging market equity and private equity. Assets which pay cashflows to investors and whose value is primarily affected by changes in interest rates including government bonds, sustainable bonds and interest rate swaps. Assets whose value is linked to inflation, including inflation bonds (government and non-government), inflation swaps and commodities (excluding fossil fuels). Assets that pay regular income including investment grade credit, high-yield credit, emerging market debt and illiquid investments, such as property or infrastructure. Assets that are different to the other investment groups, such as foreign currency and gold. Purpose in portfolio – generate returns Purpose in portfolio – manage portfolio risk, generate returns Purpose in portfolio – manage portfolio risk, may generate returns Purpose in portfolio – generate returns Purpose in portfolio – manage portfolio risk, generate returns Risk exposure: 0-70% Risk exposure: 0-70% Risk exposure: 0-50% Risk exposure: 0-30% Risk exposure: 0-30% The DGF’s investment objectives Find out more in our Statement of Investment Principles (SIP) 1 Returns To deliver a return higher than inflation (as measured using the Consumer Price Index) of 4% a year or more over the long term, after taking off the charge for managing the investments. 2 Risk The expected risk, measured in terms of annual volatility, is 12.5% a year. The expected range is from 10% to 15%. 3 RI Net zero carbon emissions by 2050, consistent with the Paris Climate Agreement, and at least half of the portfolio’s net asset value in investments which support the Trustee’s RI beliefs by the end of 2021. Fund unit prices Fund units are valued and priced on a weekly basis. A single price is used for members’ purchases and sales. See our latest unit prices Quarterly fund performance We produce a factsheet for our Diversified Growth Fund each quarter. This includes an overview of market performance and risk exposure information. See our June 2021 factsheet Browse Members Employers Payroll bureaus Financial advisers Support Help and support Resources Contact us Events Read News and insights Press Serving our members Legal information Learn About us Our mission Our investment strategy Careers Connect NOW: Pensions is registered in England and Wales as NOW Pensions Limited (No. 07766398), 6 Bevis Marks, London, EC3A 7BA. We are regulated by The Pensions Regulator and identifiable under the Pension Schemes Registry (PSR) under registration number 12005124 and HMRC reference number 00776316RJ. By clicking “Accept All Cookies”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts. Cookies Settings Accept All Cookies