Future Advantage

Diverse multi-asset portfolios 

• There are five insured funds in the Future Advantage range: Fund 1 is the lowest risk and Fund 5 is the highest risk 
• Our flexibility allows us to select the most appropriate asset class components and management approaches to help achieve performance objectives 
• A diverse range of assets can be invested in, including money market instruments, government and corporate bonds, global equities, property, and alternatives, in line with their individual risk levels. More information can be found in each fund’s factsheet. 

Low-cost and mainly passive  

• The underlying components in the range use a mainly passive approach, but there is a bespoke overlay for the responsible investing approach to equity investments. This uses a passive index with stipulated equity exclusions, to help target strong financial returns 
• By using our own underlying collectives from the Phoenix Unit Trust Managers (PUTM) range, we have the flexibility and control to make improvements to the Future Advantage funds. This could be in response to regulatory changes or where we want to swap out a fund manager. As these are our own collectives, there is no transition of assets, which minimises the costs to your clients. 

Investment independence and structure 

• The funds are independent of any one asset manager, with the freedom to draw on a broad available universe of managers, including the likes of abrdn and BlackRock 
• Our specialists actively oversee and govern the managers used, and will make changes where we believe it is in your clients’ best interests    
• Strategic asset allocation is reviewed annually and approved by our Board Investment Committee 
• Our robust framework ensures that the funds are under continuous review, with transparent quarterly reporting as standard. 

Responsible investing approach 

• Our responsible investing approach for equities prioritises investment returns whilst aiming to reduce environmental, social and governance (ESG) risks. The level of responsible investment content varies for each fund, depending on its asset allocation. 

As a result of our ongoing monitoring and reviews, we evolve our investment options to help you deliver good outcomes for your clients. You can find out about any changes which might impact them on our updates page.

The funds are potentially suitable for your clients if they: 

• Have an investment objective for capital growth over the long term
• Are looking to invest to and through retirement into a solution that matches their attitude to risk 
• Are looking to withdraw an income from capital 

The funds are unlikely to be suitable for your clients if they: 

• Are unable to accept a degree of investment risk
• Are unable to hold a UK-regulated product 

Future Advantage design: 

Risk level 1 – designed for customers who only want to take a small amount of risk to potentially achieve modest or relatively stable returns. There may be some short-term changes in value. 

Risk level 2 – designed for customers who want the potential to achieve reasonable long-term returns and are prepared to take some risk in doing so. There may be some frequent but quite small changes in value. 

Risk level 3 – designed for customers who are quite comfortable taking some risk to potentially achieve better long-term returns. The value can change frequently and sometimes significantly. 

Risk level 4 – designed for customers who are comfortable taking some risk to potentially achieve higher long-term returns. The value is likely to change frequently and often significantly. 

Risk level 5 – designed for customers who are very comfortable taking some risk to potentially achieve high long-term investment returns. The value is likely to change very frequently and significantly. 

As a result of our ongoing monitoring and reviews, we evolve our investment options to help you deliver good outcomes for your clients. You can find out about any changes which might impact them on our updates page.