For a path to retirement
Target Retirement Funds are designed to make investing for retirement simple. By automatically adjusting the amount of equities in the portfolio over time, the funds are designed to take more risk in the early stages of investment in order to generate returns, and reduce that risk as an investor approaches retirement and begins to draw down their savings.
Why Target Retirement Funds?
Goal focused
Our Target Retirement funds are designed to meet specific retirement date goals.
Clarity
A clear glide path for investors approaching and in retirement provides clarity on how client savings are invested.
Low cost
Low fees means investors get to keep more of their returns.
How Target Retirement Funds work
You only need to pick the right fund for your client by selecting the one with the year that is closest to the point they want to retire.
The funds automatically keep a balance of equity and fixed income. At the start, the allocation privileges equity over bonds to prioritise potential returns. As the retirement date approaches, the allocation switches to privilege bonds to avert the risks associated with the volatility of equity.
A selection of funds that match the expected retirement date of your client
Important risk information
Investment risk information
The value of investments, and the income from them, may fall or rise and investors may get back less than they invested.
Investments in smaller companies may be more volatile than investments in well-established blue chip companies.
The Vanguard Target Retirement Funds may invest in Exchange Traded Fund (ETF) shares.
ETF shares can be bought or sold only through a broker. Investing in ETFs entails stockbroker commission and a bid- offer spread which should be considered fully before investing.
Funds investing in fixed interest securities carry the risk of default on repayment and erosion of the capital value of your investment and the level of income may fluctuate. Movements in interest rates are likely to affect the capital value of fixed interest securities. Corporate bonds may provide higher yields but as such may carry greater credit risk increasing the risk of default on repayment and erosion of the capital value of your investment. The level of income may fluctuate and movements in interest rates are likely to affect the capital value of bonds.
The Funds may use derivatives in order to reduce risk or cost and/or generate extra income or growth. The use of derivatives could increase or reduce exposure to underlying assets and result in greater fluctuations of the Fund's net asset value. A derivative is a financial contract whose value is based on the value of a financial asset (such as a share, bond, or currency) or a market index.
For further information on risks please see the “Risk Factors” section of the prospectus.
Important information
This is directed at professional investors and should not be distributed to, or relied upon by retail investors.
For further information on the fund's investment policies and risks, please refer to the prospectus of the UCITS and to the KIID before making any final investment decisions. The KIID for this fund is available, alongside the prospectus via Vanguard’s website.
This document is designed for use by, and is directed only at persons resident in the UK.
The information contained herein is not to be regarded as an offer to buy or sell or the solicitation of any offer to buy or sell securities in any jurisdiction where such an offer or solicitation is against the law, or to anyone to whom it is unlawful to make such an offer or solicitation, or if the person making the offer or solicitation is not qualified to do so. The information is general in nature and does not constitute legal, tax, or investment advice. Potential investors are urged to consult their professional advisers on the implications of making an investment in, holding or disposing of shares and /or units of, and the receipt of distribution from any investment.
The Authorised Corporate Director for Vanguard LifeStrategy Funds ICVC is Vanguard Investments UK, Limited. Vanguard Asset Management, Limited is a distributor of Vanguard LifeStrategy Funds ICVC.
For investors in UK domiciled funds, a summary of investor rights is available in English
Issued by Vanguard Asset Management Limited, which is authorised and regulated in the UK bythe Financial Conduct Authority.
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