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Pension funds

Overview

NFU Mutual has a number of funds available for an investor who holds a Personal Pension Account. We have a number of funds with varying levels of risk to suit different investors. Find out more about our risk ratings.

We have two types of funds:

  • “Mutually Managed”: Funds investing in a mix of markets - for investors wanting to leave investment decisions to us. And;
  • “Market” selection: Funds investing in a single type of asset or market - for those wanting to take a more active role in investment decisions.

You should be aware that the value of your investment and any income from it may go down as well as up and you may get back less than invested.

Our life funds by risk category

Risk Level One

Deposit fund

Type: Market selection fund

Objective: To maintain capital stability by investing in secure UK money market accounts. The fund is an ideal temporary haven for your money while you're deciding where to invest it for the longer term. The fund isn't intended as a long-term investment.

Policy: To place money on short-term deposit in the UK money markets to get competitive rates of interest. The return will reflect the short-term interest rates in the money markets.

If all or part of your investment is in the deposit fund, please remember that this is intended to be a temporary haven while deciding where to invest for the longer term.  The fund isn't intended for long term investment.

Risk Level Two

Fixed interest fund

Type: Market selection fund

Objective: To provide a return from a portfolio investing mainly in gilts and investment grade corporate bonds.

Policy: The fund will invest in a portfolio of bonds and other fixed and floating rate securities denominated mainly in sterling and issued by governments, government agencies, supra-national and corporate issuers (including preference shares).

As well as investing in the Government of the United Kingdom and Northern Ireland, the
fund may invest in Government and other public securities of the following EEA States:
Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg,
Netherlands, Portugal, Spain and Sweden and, in addition, the Governments of Australia, Canada, Japan, New Zealand, Norway, Switzerland and the United States of America.

Index Linked fund

Type: Market selection fund

Objective: To provide a return from a portfolio investing predominantly in index-linked bonds.

Policy: The fund will invest in a portfolio investing in index-linked government or investment grade corporate index-linked securities denominated mainly in sterling, to provide a total return related to inflation linked income and redemption payments.

Risk Level Three

Mixed Portfolio 20 - 60% Shares fund

Type: Mutually managed fund

Objective: The investment objective of the Mixed Portfolio 20 - 60% Shares fund is to generate some potential long term capital growth and stable income.

Policy: The Mixed Portfolio 20 - 60% Shares fund invests in the NFU Mutual Portfolio funds OEIC Mixed Portfolio 20 - 60% Shares fund, managed by N.F.U. Mutual Unit Managers Limited. The Mixed Portfolio 20 - 60% Shares fund will invest principally in other funds managed by N.F.U. Mutual Unit Managers Limited with the balance invested in third party funds with compatible objectives. It is intended that through N.F.U. Mutual Unit Managers Limited funds and these other funds, the fund will gain exposure to a mix of UK and International equities, fixed income stocks, cash and property.

The fund will typically maintain 25% – 35% exposure to UK companies and a similar proportion in fixed income stocks with the balance in International equities, property and cash.

The charges and tax for the NFU Mutual Mixed Portfolio 20 - 60% Shares fund are different to those for the NFU Mutual Portfolio Funds OEIC Mixed Portfolio 20 - 60% Shares fund. This means that the prices quoted in the press or marketing literature will be different. However, the amount you will receive is directly linked to the performance of the NFU Mutual Portfolio funds OEIC Mixed Portfolio 20 - 60% Shares fund.

The NFU Mutual Portfolio Funds OEIC Mixed Portfolio 20-60% Shares Fund will invest in assets that are subject to trustee and safe custody fees, and may also have annual management charges.  The effect of these fees/charges, which may change over time, is reflected in your illustration and is currently estimated to be 0.15% per year

 

With-Profits fund

Type: Mutually managed fund

Objective: We invest your money with the aim of achieving long-term growth. Returns on your investment are smoothed out over time, as we keep back some of the growth from good years to boost returns in poor years. This is achieved through the way we apply bonuses to the With-Profits investments.  Although returns are smoothed values can still change sharply, so it’s not suitable as a short-term (0 –5 years) investment.

Policy: We invest your money, together with that of all of our With-Profits policyholders, in a wide range of investments including shares, commercial property, fixed interest rate and index-linked securities. The mix of funds is managed and regularly monitored by our investment team. Our With-Profits Committee set the minimum and maximum amounts that can be invested in each type of asset.

At least once a year we decide whether we can add an annual bonus, and if so how much. We don’t guarantee the size of future bonuses because they depend on any future profits we might make. We may have to cut bonus rates in future.

If we decide to add an annual bonus, we increase the price of the With-Profits Fund units.  When you cash in units or transfer part of your investment from the With-Profits Fund into one of the other funds, we may add a final bonus to reflect the overall growth in your fund

With-Profits fund
Type: Mutually managed fund
Objective: We invest your money with the aim of achieving long-term growth. Returns on your investment are smoothed out over time, as we keep back some of the growth from good years to boost returns in poor years. This is achieved through the way we apply bonuses to the With-Profits investments. Although returns are smoothed, values can still change sharply. A minimum 10-year investment is required for the Personal Pension Account.
Policy: We invest your money, together with that of all of our With-Profits policyholders, in a wide range of investments including shares, commercial property, fixed interest rate and index-linked securities. The mix of funds is managed and regularly monitored by our investment team. Our With-Profits Committee set the minimum and maximum amounts that can be invested in
each type of asset.
At least once a year we decide whether we can add an annual bonus, and if so how much. We don’t guarantee the size of future bonuses because they depend on any future profits we might make. We may have to cut bonus rates in future.
If we decide to add an annual bonus, this will be shown as an increase in the unit price.
When you take pension benefits or transfer part of your investment from the With-Profits fund, we may add a final bonus to reflect the overall growth in your fund.

Risk Level Four

Mixed Portfolio 40 - 85% Shares fund

Type: Mutually managed fund

Objective: To achieve balanced long-term growth.

Policy: To invest in a combination of our other funds to maintain a spread across types of investment. The mix of funds is managed and regularly monitored by our investment team. The fund will be exposed to the world's investment markets. Please note this fund can invest up to 85% in equities.

Risk Level Five

Mixed Portfolio Max 100% Shares fund

Type: Mutually managed fund

Objective: To maximise long-term growth from the investment.

Policy: To invest in one or more of our other funds with a view to maximising the long-term return. The mix of funds is managed and regularly monitored by our investment team. The fund is mainly exposed to UK and overseas equity markets and will therefore reflect the unpredictability of those markets, but could also be invested in other assets. Please note this fund can invest up to 100% in equities.

International fund

Type: Market selection fund

Objective: To provide long-term growth by investing overseas.

Policy: To invest in a number of stocks throughout the world. The fund is biased towards the world's major equity markets. Investments can also be made in the smaller markets, which can be more unstable, but can also produce good returns.

UK Equity fund

Type: Market selection fund

Objective: To provide long-term growth by investing in UK quoted company stocks and shares.

Policy: The portfolio invests predominantly in blue-chip companies.

UK Equity Income fund

Type: Market selection fund

Objective: To achieve income in excess of the FTSE All Share Index with some capital growth by investing primarily in shares of UK companies.

Policy: The UK Equity Income fund invests in the NFU Mutual OEIC UK Equity Income fund managed by N.F.U. Unit Managers Limited. The fund will invest primarily in shares of companies which are domiciled in the UK or which have a significant part of their activities in the UK but which are domiciled or quoted on a market outside the UK. The fund may also invest in other transferable securities, money market instruments, collective investment schemes, deposits, cash and near cash. The fund may use financial derivatives but only for hedging or efficient portfolio management purposes.

The charges and tax applied to the NFU Mutual UK Equity Income fund are different to those applied to the NFU Mutual OEIC UK Equity Income fund. This means that the prices quoted in the press or marketing literature will be different. However, the amount you receive is directly linked to the performance of the NFU Mutual OEIC Equity Income fund.

Property fund

Type: Market selection fund

Objective: To provide long-term growth by investing in property related shares and/or property.

Policy: To invest in a selection of UK property and property related shares. The valuation will reflect UK property and stock market values. However, the fund does not currently invest directly in property.

Risk Level Six

Global Emerging Markets fund

Type: Market selection fund

Objective: To achieve long-term capital growth through diversified exposure to emerging markets of the world.

Policy: The Global Emerging Markets fund invests in the NFU Mutual OEIC Global Emerging Markets fund, managed by N.F.U. Mutual Unit Managers Limited. The fund will primarily invest directly or indirectly in companies that are incorporated in emerging markets or companies which have a significant part of their activities in or derive the majority of their revenue from emerging markets.

The fund will invest primarily in equity securities either directly or indirectly through collective investment schemes. The fund may also invest in other transferable securities, money market instruments, collective investment schemes, deposits, cash and near cash. The fund may use financial derivatives but only for hedging or efficient portfolio management purposes.

The charges and tax for the NFU Mutual Global Emerging Markets fund are different to those for the NFU Mutual OEIC Global Emerging Markets fund. This means that the prices quoted in the press or marketing literature will be different. However, the amount you receive is directly linked to the performance of the NFU Mutual OEIC Global Emerging Markets fund.

The NFU Mutual OEIC Global Emerging Markets Fund will invest in assets that are subject to trustee and safe custody fees, and may also have annual management charges.  The effect of these fees/charges, which may change over time, is reflected in your illustration and is currently estimated to be 0.15% per year.

Take the time
to talk to us

Our Financial Advisers* are able to help you better understand the complexities of risk and advise you on investments that are compatible with your attitude to risk.

ARRANGE AN APPOINTMENT

* Please note

When you contact us we'll explain the advice services we offer and our charges. NFU Mutual Financial Advisers advise on NFU Mutual products and selected products from specialist providers.

For security and training purposes calls may be recorded and monitored.