Your pension should be just that – yours
Your pension should be just that – yours
At Chamber Pension Plan our pension funds are called Lifecycle funds, and are based on your age and your projected retirement date. The reason we have different funds for different age groups is that as you age, your investment risk tolerance, portfolio time horizon, and investment goals normally change. Lifecycle Funds reflect your changing needs throughout your working life by automatically adjusting the combination of assets they invest in based on your age to reflect your evolving investment needs and goals.
Each of the Chamber Pension Plan’s six Lifecycle Funds available under the plan contains a mix of investments linked to a specific target retirement decade, and each target retirement decade corresponds to a specific investment time horizon.
The Chamber Pension Plan’s six classes are called Lifecycle Funds, because they are designed to match where you are in your work life – the amount of working time left before you will need to start using your savings and the way your investment goals are expected to change over time.
The six Chamber Pension Plan Lifecycle Funds are:
The Lifecycle Funds use professionally determined investment mixes that are tailored to meet investment objectives based on various time horizons. The objective is to strike an optimal balance between the expected return and risk associated with each fund.
The Chamber Pension Plan Lifecycle Funds’ strategy is to invest in an appropriate mix of equity and fixed income securities for a particular time horizon, or target retirement date. The investment mix of each Chamber Pension Plan Lifecycle Fund becomes more conservative as its target date approaches.
The strategy assumes that:
Each of the Chamber Pension Plan Lifecycle Funds has a target asset allocation. In other words, each is made up of the combination of equity and fixed income portfolios which maintain an optimal balance of investment risks and rewards for a particular time horizon. Here is a graph representing the 2019 target allocations for the Chamber Pension Plan Lifecycle Funds:
When a Lifecycle Fund has reached its target date, its composition will be the same as the Income Growth Fund.
The Income Growth Fund:
You may also make a one-time selection at any time to our most conservative fund, Income Conservative. The investment mix of the Income Conservative Fund is maintained at 75% fixed income and 25% equity.
New Lifecycle funds will be added for distant target dates as they are needed. For instance, a Chamber 2070 Fund will be created in 2025 while at the same time the Chamber 2030 proportions will adjust to reflect the Income Growth Fund proportions.
When you invest in the Chamber Pension Plan Lifecycle Funds:
Pension Lifecycle Funds simplify fund selection. When you join the plan you are automatically allocated, based on your age, to the Lifecycle Fund representing your expected target retirement date. To add some flexibility, at any time, you can move mandatory contributions to a more conservative Chamber Pension Plan Lifecycle Fund.
When you invest in the Chamber Pension Plan Lifecycle Funds:
Use the Chamber Pension Plan Lifecycle Funds if you are looking for a simple, low maintenance way of investing money in your pension account. The Chamber Pension Plan Lifecycle Funds make the investing process easy for you because you do not have to figure out how to diversify your account or how and when to re-balance.
The Chamber Pension Plan Lifecycle Funds are designed so that 100% of your pension account can be invested in the single Chamber Pension Plan Lifecycle Fund that most closely matches your working time horizon.
CHAMBER LIFECYCLE FUND |
INVESTMENT OBJECTIVE |
INVESTMENT MIX (THE BALANCE BETWEEN EQUITY AND FIXED) |
Chamber 2060 If you were born in the 1990s
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Maximise savings growth |
The investment mix in these funds adjusts over time. For example, the 2045 fund started with an investment mix of 90% stocks and 10% fixed income investments in 2006 but has been rebalanced every year to slowly include more fixed income investments and fewer stocks (see Fund Composition above for current investment mix). |
Chamber 2050 If you were born in the 1980s
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Chamber 2040 If you were born in the 1970s
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Seek strong growth |
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Chamber 2030 If you were born in the 1960s
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Income Growth If you were born in 1959 or earlier |
Avoid sharp market declines
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While the Chamber Income Growth Fund has a higher allocation to lower risk investments, a relatively small portion of its assets will continue to be invested in global stocks. The investment mix of the Income Conservative Fund is maintained at 75% fixed income and 25% equity. |
Income Conservative If you were born in 1959 or earlier |