Changing your funds
As your attitude to risk may change over time, you may want to change your investment choices from time to time.
If you are in DC Start or DC Core, or you have DC overcap contributions or AVCs in DC Core, it is important that you regularly review your investment choices to ensure that they are still appropriate for you.
As an active member of DC Core, you can change your investment choices quarterly by completing an Investment choices form and returning it to Nestlé Pensions. If you are in DC Start, you would need to move to DC Core if you want to change your investment choices. You would need to contribute a minimum of 5% of your Pensionable Earnings, but you would also receive higher contributions from Nestlé.
When you change your investment choices, you have various options:
- to invest in the Lifetime Pathway fund – in this case, all of your account must be directed to the Lifetime Pathway fund;
- to direct all your past and future contributions to any combination of the nine self-select funds;
- to change the way your account is split across the range of self-select funds you have chosen.
If you change your investment choices, all of your contributions, both those you’ve already made (including any to DC Start) and any future ones, will be invested in accordance with your new investment instructions.
If you ask to change your investment choices, we will sell the units you hold in your current funds and use the cash generated to buy units in the new funds you have selected. Here are some other things you should be aware of when making a change:
Generally our investment provider will be able to sell and buy units on the same day, so that you are constantly invested in the financial markets. However, on rare occasions this may not always be possible, in which case our investment provider will sell units one day, but then will not purchase new units until a few days later. If this occurs, your monies will be "out of the market" between the sale and the purchase date. As a result, you could either make a gain or suffer a loss if the markets move unexpectedly and significantly whilst you are out of the market.
There are no charges for fund switches. However, when you change funds there are costs incurred when selling units in your old funds and buying units in your new funds. These costs are reflected in the daily unit price. Where possible our investment provider will use strategies to seek to minimise the transaction costs. However, where there are significant movements of money in or out of a fund on a particular day, this may not always be possible. the Fund manager may take steps to ensure that existing investors are protected by "swinging" the unit price, meaning that the sale and purchase costs on that particular day could both be as much as up to 1% of the value of the monies being disinvested and reinvested.
If you would like advice about your investment choices, you should contact an Independent Financial Adviser (IFA). The Money Advice Service has a directory of advisors who are authorised by the Financial Conduct Authority and can be found at: www.moneyadviceservice.org.uk.