LifePath target date funds
Capital at risk. The value of investments and the income from them can fall as well as rise and are not guaranteed. Investors may not get back the amount originally invested.
UK savers need access to high quality retirement solutions as they look to put their hard earned savings to work in order to facilitate spending in retirement. One of the key challenges is developing a default investment strategy that can be relevant to a diverse workforce, as well as adapt to changes in the investment and regulatory landscape.
For this reason, we believe it is crucial for schemes to build defaults that can stand the test of time, adapt to the changing pension landscape, and deliver outcomes suited to the needs of today’s UK saver.
Why Target Date Funds?
Target date funds (TDFs), like LifePath, help take the guesswork out of saving for retirement. The aim of LifePath is to help members achieve a consistent level of spending through their lives by designing an age-aware investment strategy.
Risk: There can be no guarantee that the investment strategy can be successful and the value of investments may go down as well as up.
Why Target Date Funds?
Target date funds (TDFs) help take the guesswork out of saving for retirement. The aim of LifePath TDFs is to help members achieve a consistent level of spending through their lives by designing an age aware investment strategy.
Target Date Funds (TDFs) aim to help schemes meet the challenge of building better defaults because they can offer greater flexibility for members and help ease the investment and governance burden for trustees, pensions managers and their advisers.
In the more than 25 years since BlackRock introduced LifePath®, our goal has remained the same: helping plan sponsors guide their participants successfully into and through retirement.
Why LifePath Funds?
LifePath aims to reflect changing investment needs over a member’s lifetime by gradually altering its investment mix as members near their target retirement date.
LifePath helps members take the right amount of risk at the right time in their lives, from a focus on growth when they are young to protecting their wealth near to and in retirement.
Key facts about LifePath
Risk: This information should not be relied upon as research, investment advice, or a recommendation regarding any products, strategies, or any security in particular. This is for illustrative and informational purposes and is subject to change. It has not been approved by any regulatory authority or securities regulator.
Capital at risk. The value of investments and the income from them can fall as well as rise and are not guaranteed. Investors may not get back the amount originally invested. This is marketing material.
There are some challenges in life you may be prepared to take on.
And there are others where you’d rather trust a professional.
The same holds true when investing for retirement.
Some people enjoy the challenge of managing their own investments.
While others prefer to let professionals pilot their investment strategies.
If that’s you, there’s a professionally managed investment option which follows a sophisticated flight plan that adjusts for your time to retirement.
RISK: There can be no guarantee that the investment strategy can be successful and the value of investments may go down as well as up.
Known as LifePath Target Date Funds, they seek to provide a diversified investment that balances between growing your investment and protecting against risk to help you advance toward your retirement goals.
Similar to how a plane’s glide path adjusts as it approaches its destination, the investment allocation changes as you approach retirement.
When you’re young and far from retirement, the investment mix is more aggressive to help your investments grow.
RISK: There can be no guarantee that the investment strategy can be successful and the value of investments may go down as well as up.
As you approach retirement, the fund automatically shifts to a more conservative investment allocation with the goal of preserving your savings.
When you arrive at your desired retirement date, the fund shifts to an investment mix designed to help you retain spending power through retirement.
So if you like the idea of gliding into retirement with the help of professionals managing your investments, LifePath Target Date Funds are available to help you on your journey.
Visit your pension scheme website to learn more today.
Risk Warnings
Investors should refer to the prospectus or offering documentation for the funds’ full list of risks.
Capital at risk. The value of investments and the income from them can fall as well as rise and are not guaranteed. Investors may not get back the amount originally invested.Past performance is not a reliable indicator of current or future results and should not be the sole factor of consideration when selecting a product or strategy.Changes in the rates of exchange between currencies may cause the value of investments to diminish or increase. Fluctuation may be particularly marked in the case of a higher volatility fund and the value of an investment may fall suddenly and substantially. Levels and basis of taxation may change from time to time.
Fund-specific risks
Credit Risk, Derivative Risk, Equity Risk, ESG Screening Risk
Description of Fund Risks
Credit Risk
The issuer of a financial asset held within the Fund may not pay income or repay capital to the Fund when due.
Derivative Risk
The Fund uses derivatives as part of its investment strategy. Compared to a fund which only invests in traditional instruments such as stocks and bonds, derivatives are potentially subject to a higher level of risk.
Equity Risk
The value of equities and equity-related securities can be affected by daily stock market movements. Other influential factors include political, economic news, company earnings and significant corporate events.
ESG Screening Risk
The Fund seeks to exclude companies engaging in certain activities inconsistent with ESG criteria. Investors should therefore make a personal ethical assessment of the Fund’s ESG screening prior to investing in the Fund. Such ESG screening may adversely affect the value of the Fund’s investments compared to a fund without such screening.
Important Information
This material is for distribution to Professional Clients (as defined by the Financial Conduct Authority or MiFID Rules) only and should not be relied upon by any other persons.
This video is marketing material.
Issued by BlackRock Life Limited (“BLL”), which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority. The Fund described in this document is available only to trustees and members of pension schemes registered under Part IV of the Finance Act 2004 via an insurance policy which would be issued either by BLL, or by another insurer of such business. BLL’s registered office is 12 Throgmorton Avenue, London, EC2N 2DL, England. Registered in England and Wales number 02223202. Please refer to the Financial Conduct Authority website for a list of authorised activities conducted by BlackRock.
Any research in this document has been procured and may have been acted on by BlackRock for its own purpose. The results of such research are being made available only incidentally. The views expressed do not constitute investment or any other advice and are subject to change. They do not necessarily reflect the views of any company in the BlackRock Group or any part thereof and no assurances are made as to their accuracy.This document is for information purposes only and does not constitute an offer or invitation to anyone to invest in any BlackRock funds and has not been prepared in connection with any such offer.
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LifePath target date funds
There are some challenges in life you may be prepared to take on. And there are others where you’d rather trust a professional. The same holds true when investing for retirement. LifePath is a professionally managed investment option which follows a sophisticated flight plan that adjusts for your time to retirement.
