Each fund is different depending on:

• Its aims – one fund may concentrate on growing your pension
  savings, while another may concentrate on protecting the value of
  your pension savings
• Its investment – some funds might choose to invest for long-term
  growth, while others might aim for stability over the short-term.

What a fund aims to do, and what it invests in, determines how much you’re charged as well as how your pension savings are expected to grow.

There are different types of risk when investing in any fund, the main one being that the value of your pension savings can go up as well as down and may not keep up with inflation (the increasing costs of goods and services).

It’s important that you look at the costs and charges of a fund alongside the value that the fund is trying to give you.

This value can come in many different forms depending on the fund you choose, for example:

• growing the value of your pension savings
• protecting the value of your pension savings to keep them stable
• collecting your payments and keeping them secure

This value can also come from:

• all the systems and people’s time needed to look after your policy
• the specialist knowledge required to understand the markets and invest
  your pension savings
• any communication, websites and information that help you understand
  and keep you up to date with your pension savings

More detailed information on this can be found in the Chair Statement in the Documents section.