Investing in cash over the long term may not achieve the best returns
Investing in cash over the long term could mean your investment doesn’t keep up with inflation and may not achieve the best returns.
Because cash interest rates are low, holding a large part of your investment in cash for a long period could mean its value doesn’t keep pace with inflation. It could also mean the value of your investment is eroded by fund, product, and advice charges.
It’s important to review your plan and fund choice regularly to ensure it continues to meet your needs. The best way to do this is with the help of a financial adviser.
How your charges and withdrawals are paid for
We’ll look to your cash holding first to deduct charges and on going servicing and DIM fees when, you need to pay them. If you don’t have enough (or any) money in cash, we’ll sell units proportionally across your investment funds to fund approximately six months' worth of fees, up to a maximum of 0.75% of your account value. This cash will then be held on your account to fund future fees and charges.
For your withdrawals or income, you can choose whether you want us to take the money from your cash account, or whether you want us to sell your funds (either proportionately or selectively).
We’ll take care of everything for you
When we move you over to the new system, if you have any money in cash deposit (for an ISA or Collective Investment Account) we will automatically move it over as cash within your account. As the Collective Retirement Account currently does not have a cash facility, no cash will be migrated for this product, however if you hold cash funds such as BlackRock cash, then these funds will be migrated along with the other funds you hold.