Lifestyle strategies 

A lifestyle strategy is designed to meet a member’s investment objectives as they go through their career.  This involves investing in higher risk/ higher reward funds during what is called a “growth phase” and then moving gradually to lower risk assets as a member approaches retirement.  This move to lower risk assets is designed so that at the time a member reaches retirement their pension is invested in a way that aims to meet their retirement objectives.   

There are three lifestyle strategies on offer – Drawdown, Annuity and Cash.  All have the same purpose to provide a value at retirement.  The strategy you decide will depend on how you may wish to access your DC account upon retirement.  Full details of each lifestyle strategy are shown below. 

Under the lifestyle strategies you are able to choose a target retirement age, which will determine the funds into which contributions are invested on your behalf and when these investments take place.  The target retirement age you select is not binding and can be changed at any point by completing an Investment Choice form.  If you do not elect a target retirement age the default age will be set to your 65^th birthday. 

You may also change your investment strategy at any time by completing an Investment Option form (found in the document library).

ITB Drawdown Lifestyle (Default Option) Fund Code: LGG3

If you do not select any fund for investing your own contributions and the contributions that your employer will make on your behalf, they will automatically be invested in the Drawdown Lifestyle Fund.  This is the “default” option determined by the ITB Trustee, as advised by its independent investment adviser. 

Throughout the growth phase the strategy targets a mix of 35% in the L&G Low Carbon Transition Fund (foreign currency unhedged), 35% in the Low Carbon Transition Fund (foreign currency hedged) and 30% in the L&G Future World Multi-Asset Fund.

The L&G Low Carbon Transition Funds are invested in global equities, with a higher investment in companies that are more valuable (known as market capitalisation) and some companies may have a higher or lower allocation depending on their level of carbon emissions.  The L&G Future World Multi-Asset Fund is invested in a diversified range of asset classes (excluding physical property) while reflecting significant environmental, social and corporate governance issues into the fund's investment strategy..  

Starting 15 years before your planned retirement date, the allocation to the Low Carbon Transition Funds will be gradually reduced, and the Future World Multi-Asset Fund allocation will be increased up to an allocation of 75% at the target retirement age.  In the final 5 years before retirement, an allocation to Cash will also be built-up.  At the point of reaching the target retirement age your pot will be invested 75% in the Future World Multi-Asset Fund and 25% in Cash.

Annual charges at 15 or more years from retirement are 0.30% pa, from 14 to 12 years before retirement they are 0.31% pa, 11 to 9 years before retirement 0.32% pa, 8 and 7 years before retirement 0.33%, 6 to 1 year before retirement 0.34% and at retirement they are 0.35%.

ITB Cash Lifestyle Fund Code: LGH3

Throughout the growth phase the strategy targets a mix of 35% in the L&G Low Carbon Transition Fund (foreign currency unhedged), 35% in the Low Carbon Transition Fund (foreign currency hedged) and 30% in the L&G Future World Multi-Asset Fund.

Starting 15 years before your planned retirement date, the Low Carbon Transition Fund allocation will be gradually reduced, and the Future World Multi-Asset Fund allocation will be increased.  In the final 5 years before retirement, the entire allocation will be gradually switched into Cash, so that at the point of retirement, your pot will be 100% invested in Cash. 

Annual charges at 15 or more years before retirement are 0.30% pa.  They increase gradually to 0.34% pa at 5 years before retirement and then reduce to 0.29% just before retirement.

ITB Annuity Lifestyle Fund Code: LGI3

Throughout the growth phase the strategy targets a mix of 35% in the L&G Low Carbon Transition Fund (foreign currency unhedged), 35% in the Low Carbon Transition Fund (foreign currency hedged) and 30% in the L&G Future World Multi-Asset Fund.

Starting 15 years before your planned retirement date, the Low Carbon Transition Funds and the Future World Multi-Asset Fund allocations will be gradually reduced, and allocations will be built-up to Index-linked Gilts and Corporate Bonds.  In the final 5 years before retirement, allocations will also be made to Fixed Interest Gilts and Cash.  At the point of retirement, your pot will be invested 18.75% in Corporate Bonds, 18.75% in Fixed Interest Gilts, 37.5% in Index-linked Gilts and 25% in Cash. 

Annual charges at 15 or more years from retirement are 0.30% pa.  They increase to 0.30% pa between 11 and 4 years before retirement and then reduce to 0.29% pa just before retirement