Blend funds

Four blend funds have been created for FuturePlanner with different investment growth targets.

River and Mercantile advise the Trustees on investment strategy and they have created four blend funds which are used in the Default strategy.

There are two key features of a blend fund. Firstly, River and Mercantile will invest in a variety of different assets –rather than just shares – to reduce the variability of the returns for the fund. This is known as ‘diversification’.

Secondly, River and Mercantile will adjust the components of these blend funds between the different asset classes, based on their views of the opportunities and risks within investment markets and the overall return the fund is seeking. This is known as ‘rotation’.

The table below provides details of the four funds including the fund investment objective, the risk level given by the Trustees based on River and Mercantile's advice and the annual management charge. To see the most up to date charges for all the funds go to Old Mutual Wealth

Fund name Long-term target Risk level
(1 is low, 6 is high)
Charge
Long-term growth Inflation +5% 4 0.61%
Stable growth Inflation +4% 3.5 0.66%
Cautious growth Inflation +3% 3 0.56%
Retirement protection Platform for retirement options 2.5 0.41%