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We’re restructuring our Target Lifestyle Strategies

Published  05 February 2025
   5 min read

We’re making changes to the structure of some of our Target Lifestyle Strategies to ensure we can operate more efficiently as the Governed Range grows.

One of the key benefits of our Governed Range is Royal London Asset Management’s ability to make tactical changes in response to market developments. But additional scale could restrict this, so the changes we’re making will support the efficient management of the Governed Range going forward.

What’s changing?

Since November 2020, customers have been able to access fund versions of each of our Governed Portfolios that use the RLP Global Managed Fund as the equity component. As we restructure our Target Lifestyle Strategies, we’ll use these funds in place of our previous portfolio structure. Tactical positions in these funds are taken in line with the portfolio versions - meaning there’s full alignment between the different versions of the Governed Portfolios and the Governed Portfolio funds. And the changes won’t have any direct impact on your employees who are invested through a Target Lifestyle Strategy other than the way in which their investment option is presented to them. 

 

What’s not changing?

There’s no impact to the overall objective or risk level for any employees’ lifestyle strategy as a result of these changes. The way we manage the investments in the Governed Portfolio funds is in line with how we’ve managed the portfolios to date and we’ll continue to do this under the fund structure.   
 
This change only impacts the Target Lifestyle Strategies that use the RLP Global Managed Fund for equity content. There’s no impact to Tracker or Active versions of lifestyle strategies or any Flexible Lifestyle Strategy arrangement that makes use of our overcode functionality. 
 
Additionally, there’s no impact to any employees who directly access a Governed Portfolio or Governed Retirement Income Portfolio. 

 

When will the changes take place?

We’ve carried out some initial phases of this work so it’s possible your employees may have seen some changes to their plans already. Over the weekend of 7 February 2024, we’ll complete the final phase, which includes moving the Royal London Workplace Default – the Balanced Lifestyle Strategy (Target Drawdown). 
 
How we describe the investment options won’t change but employees may see a reduction in the number of funds shown in our communications, online services and mobile app.  

 

What will the changes look like for employees?

Mobile app view of experience:

Example for an employee within a Balanced Lifestyle Strategy who has begun to lifestyle to retirement.

 

Existing experience:

New experience: