Workplace pensions are required to have a default investment to ensure members can be enrolled without the need to make a choice.
Details of the Salvus Master Trust default investment are available here. The default investment is subject to a regulatory charge cap, the cap is currently 0.75% annual management charge, but charges can be lower.
Should a member make an alternative investment choice, the alternative fund(s) may not be subject to the cap. Therefore anyone considering self selecting investments should consider financial advice and the potential implications of higher investment charges.
For those that decide they do want something different to the Default Fund, Freestyle Self Select is available.
Using the Aegon investment platform, Freestyle Self Select allows you to invest in alternative funds, which are:
|Aegon BlackRock Corporate Bond Tracker (these are Bonds) and are invested in a mix of Sterling Corporate Bonds|
|Aegon BlackRock Over 15 Years Corporate Bond Tracker (these are Bonds) and are invested in a mix of Sterling Long Bonds|
|Aegon BlackRock Over 15 Years UK Gilt Tracker (these are Bonds) and are also invested in a mix of Sterling Long Bonds|
|Aegon UK Gilts All-Stocks Tracker (these are Bonds) and invest in UK Gilts|
|Aegon BlackRock UK Index-Linked Tracker (these are Bonds) and invest in UK index-linked Gilts||.|
|Aegon BlackRock World (ex UK) Equity Tracker (these are Equities) and invest in Global Equities|
|Aegon BlackRock UK Equity Tracker (these are Equities) and invest in UK Companies|
Table 1, important notes:
|Aegon BlackRock Pacific Rim Equity Tracker||0.75%|
|Aegon BlackRock Japanese Equity Tracker||0.75%|
|Aegon BlackRock US Equity Tracker||0.75%|
|Aegon BlackRock European Equity Tracker||0.75%|
|Aegon BlackRock Emerging Markets Equity Tracker||0.75%|
|Aegon Balanced Passive||0.75%|
|Aegon Scot Eq Legal & General Pre-Retirement||0.80%|
|Aegon HSBC Life Islamic Global Equity (Amanah)||1.05%|
|Aegon Scot Eq M&G Property Portfolio||1.45%|
|Aegon's MI Savings (Low)||0.90%|
|Aegon's MI Savings (Medium)||0.90%|
|Aegon's MI Savings (High)||0.90%|
|Aegon Scot Eq M&G Recovery||1.45%|
Table 2, important notes:
The funds are continually reviewed to ensure they are suitable.
The annual management charge applicable to these funds will be shown on your documentation and in your member portal, which is hosted by our administrator HS Admin, and will be based on the arrangement agreed with your Employer when the Pension Scheme was established.
Members should consider taking advice from an FCA approved Independent Financial Adviser regarding which funds to invest in if they are not sure themselves.