• The main change is that we’ve introduced 3 new responsible investment (RI) funds (see below) – you’ll see them as additional options if you’re in the Customised approach and they're now part of the mix of underlying funds in the Guided approach.
• The other big one is that we’ve updated the investment terms and fund names we use. In particular, we’ve renamed our 2 investment approaches: Hands off has become Guided and Hands on has become Customised.

There are a few other changes too – hopefully you received your personalised leaflet that we sent at the end of June. This explains how the changes affect you based on how you were investing in June.

Psst, watch this space! We’ll continue to adapt our approach and fund range, in line with changing attitudes and to take advantage of new investment opportunities. We’ll let you know how we get on. 

We’ve developed our RI strategy and principles over several years. In that time, there's been growing interest in RI and an increase in the number of RI funds available. We’ve also seen an increasing regulatory focus in this area.

This, together with our conversations with members, is why we believe that now is a good time to introduce more funds that have a specific focus on their environmental, social and governance (ESG) responsibilities.

We’ve identified 3 funds to help us expand our RI focus, while still meeting our core aims of ensuring good value for money and appropriate performance outcomes – so your savings can still do well while you’re making a difference:

• Global shares (responsible investment) (index tracker). This fund invests in a mix of developed global shares and emerging markets shares that follow a specific market index. The index has a strong focus on protecting the environment, good governance and supporting social rights. The fund aims to provide growth over the long term. Underlying fund: LGIM Future World Global Equity Fund.
• Global shares (climate) (index tracker). This fund invests in a mix of developed global shares and emerging markets shares that follow a specific market index. The index is focused on reducing exposure to carbon emissions over time (with an aim of achieving net zero by 2050). The fund aims to provide growth over the long term. Underlying fund: LGIM Low Carbon Transition Global Equity Index Fund.
• Diversified investments (responsible investment). This fund invests in a wide range of assets, like bonds, shares, infrastructure and private equity (but excluding physical property) whilst taking account of environmental, social and governance factors. The fund aims to provide growth over the long term. Underlying fund: LGIM Future World Multi-Asset Fund.

What's an underlying fund? The underlying fund is the actual investment fund(s) that a DC Plan fund invests in. Rather than use the underlying fund names (which can be quite wordy) to describe our funds, we’ve named our funds to give you an idea of the types of assets each fund invests in. Naming funds this way makes it simpler for you, and easier for us to change an underlying fund if we find another that’s more suitable (although we only do this occasionally).