The table below shows you the charges and transaction costs associated with each of the Scheme’s available Defined Contribution funds.
We’ve also included a couple of examples of what your fund might look like once these charges and costs have been taken into account.
| Provider/Fund | TER (% p.a.) | Transaction costs (%) |
|---|---|---|
| L&G | ||
| Cash Lifestyle Strategy | 0.38 – 0.42 (depending upon term to retirement) |
0.00 – 0.05 (depending upon term to retirement) |
| World Equity Index | 0.41 | 0.07 |
| UK Equity Index | 0.39 | 0.04 |
| Global Real Estate Equity Index | 0.48 | 0.07 |
| Multi-Asset | 0.42 | 0.05 |
| Future World Multi-Asset | 0.45 | 0.07 |
| Future World Annuity Aware | 0.41 | 0.08 |
| All Stocks Index-Linked Gilts | 0.37 | 0.18 |
| Cash | 0.38 | 0.00 |
| Phoenix Life | ||
| With Profits | 0.571 | 0.07 |
| Prudential | ||
| With Profits (series 1 and Series 3) | 1.042 | 0.17 |
| Santander | ||
| Deposit Account | 0.00 | 0.00 |
Source: Providers
1 The TER shown is for pre-1990 benefits. Phoenix Life has confirmed the TER for post-1990 benefits is 0.65%.
2 For the Prudential With Profits Fund, the costs of running the fund are taken into account when the bonus rate is declared. Prudential currently expects this to be 0.80% p.a. assuming future investment returns in the With Profits Fund are 5.00% p.a. plus additional expenses of 0.24% p.a.
Example illustrations of the impact of fund charges and costs on member’s DC fund values
Provided below are some example illustrations of the impact DC provider’s charges and costs have, in practice, upon the DC fund value for a typical member of the Scheme. The Trustee has not provided illustrations for the Santander Deposit Account as there are no costs or charges associated with this policy.
- Example member 1: the youngest member (age 41) who is therefore 24 years from their retirement age of 65 with a current fund of £970;
- Example member 2: a member of average age (age 57) who is therefore 8 years from their retirement age of 65 with a current fund of £5,850.
The effect of costs and charges on the Cash Lifestyle Strategy (which is the strategy within which members are invested unless they self-selected investment funds), the Global Real Estate Equity Index Fund (the fund with the highest charges) and the Cash Fund (the fund with the lowest level of charges) have been illustrated.
The examples below illustrate the effect of the costs and charges on example members’ projected retirement pots over time.
Example member 1:
For the youngest member, the estimated impact of costs and charges on the accumulated fund values is shown in the table below.
|
Cash Lifestyle Strategy |
|||
| Years to retirement | Fund value before charges | Fund value after charges | Impact of charges |
|---|---|---|---|
| 24 | £970 | £970 | £0 |
| 20 | £1,120 | £1,100 | £20 |
| 15 | £1,350 | £1,300 | £50 |
| 10 | £1,610 | £1,520 | £90 |
| 5 | £1,940 | £1,790 | £150 |
| 0 | £2,250 | £2,040 | £210 |
|
Global Real Estate Equity Index Fund (highest cost) |
|||
| Years to retirement | Fund value before charges | Fund value after charges | Impact of charges |
|---|---|---|---|
| 24 | £970 | £970 | £0 |
| 20 | £1,130 | £1,110 | £20 |
| 15 | £1,370 | £1,310 | £60 |
| 10 | £1,660 | £1,540 | £120 |
| 5 | £2,010 | £1,820 | £190 |
| 0 | £2,430 | £2,150 | £280 |
|
Cash Fund (lowest cost) |
|||
| Years to retirement | Fund value before charges | Fund value after charges | Impact of charges |
|---|---|---|---|
| 24 | £970 | £970 | £0 |
| 20 | £1,000 | £980 | £20 |
| 15 | £1,030 | £1,000 | £30 |
| 10 | £1,070 | £1,010 | £60 |
| 5 | £1,100 | £1,030 | £70 |
| 0 | £1,140 | £1,050 | £90 |
Example member 2:
For the member of average age, the estimated impact of costs and charges on the accumulated fund values is shown in the table below.
|
Cash Lifestyle Strategy |
|||
| Years to retirement | Fund value before charges | Fund value after charges | Impact of charges |
|---|---|---|---|
| 8 | £5,850 | £5,850 | £0 |
| 5 | £6,530 | £6,440 | £90 |
| 0 | £7,590 | £7,340 | £250 |
|
Global Real Estate Equity Index Fund (highest cost) |
|||
| Years to retirement | Fund value before charges | Fund value after charges | Impact of charges |
|---|---|---|---|
| 8 | £5,850 | £5,850 | £0 |
| 5 | £6,560 | £6,460 | £100 |
| 0 | £7,950 | £7,630 | £320 |
|
Cash Fund (lowest cost) |
|||
| Years to retirement | Fund value before charges | Fund value after charges | Impact of charges |
|---|---|---|---|
| 8 | £5,850 | £5,850 | £0 |
| 5 | £5,970 | £5,900 | £70 |
| 0 | £6,180 | £6,000 | £180 |
The representative members for which illustrations are shown are based upon the members of the Prudential arrangements, as Phoenix Life has not provided updated member data in time to be included in this statement.
- Example member 3: the youngest member (age 42) who is therefore 23 years from their retirement age of 65 with a current fund of £854;
- Example member 4: a member of average age (age 59) who is therefore 6 years from their retirement age of 65 with a current fund of £2,109.
The effect of costs and charges on the Phoenix Life and Prudential With Profits Funds have been illustrated, as these are the only funds members of these arrangements invested in at the end of the Scheme Year.
Example member 3:
For the youngest member, the estimated impact of costs and charges on the accumulated fund values is shown in the table below.
|
Phoenix Life With Profits Fund (pre-1990 benefits) |
|||
| Years to retirement | Fund value before charges | Fund value after charges | Impact of charges |
|---|---|---|---|
| 23 | £854 | £854 | £0 |
| 20 | £870 | £850 | £20 |
| 15 | £890 | £840 | £50 |
| 10 | £910 | £840 | £70 |
| 5 | £930 | £830 | £100 |
| 0 | £960 | £820 | £140 |
|
Prudential With Profits Fund |
|||
| Years to retirement | Fund value before charges | Fund value after charges | Impact of charges |
|---|---|---|---|
| 23 | £854 | £854 | £0 |
| 20 | £940 | £910 | £30 |
| 15 | £1,110 | £1,020 | £90 |
| 10 | £1,310 | £1,140 | £170 |
| 5 | £1,540 | £1,270 | £270 |
| 0 | £1,810 | £1,410 | £400 |
Example member 4:
For the member of average age, the estimated impact of costs and charges on the accumulated fund values is shown in the table below.
|
Phoenix Life With Profits Fund (pre-1990 benefits) |
|||
| Years to retirement | Fund value before charges | Fund value after charges | Impact of charges |
|---|---|---|---|
| 6 | £2,109 | £2,109 | £0 |
| 5 | £2,120 | £2,110 | £10 |
| 0 | £2,170 | £2,090 | £80 |
|
Prudential With Profits Fund |
|||
| Years to retirement | Fund value before charges | Fund value after charges | Impact of charges |
|---|---|---|---|
| 6 | £2,109 | £2,109 | £0 |
| 5 | £2,180 | £2,160 | £20 |
| 0 | £2,570 | £2,410 | £160 |
- Fund values shown are estimates and are not guaranteed (they have been rounded to the nearest £10);
- Representative members are based upon the Scheme’s membership as at 2 May 2023 for the L&G arrangement, 1 April 2022 for the Prudential Series 1 arrangements and 31 March 2023 for the Prudential Series 3 arrangements. No membership data was available for the Phoenix Life arrangement;
- The illustrations assume no further contributions are paid;
- The illustrations are shown in today's terms, and do not need to be reduced further for the effect of inflation, which is assumed to be 2.50% p.a.;
- A floor of 0.00% p.a. has been used for transaction costs if these were negative so as not to potentially understate the effect of charges on fund values over time;
- The projected growth rates and costs and charges assumed in the illustrations are as follows:
| Fund / Strategy | Growth rate | Costs and charges |
|---|---|---|
| L&G Cash Lifestyle Strategy | 3.2% to 6.3% p.a. depending upon term to retirement |
0.38% to 0.45% p.a. depending upon term to retirement |
| L&G Global Real Estate Equity Index Fund | 6.5% p.a. | 0.54% p.a. |
| L&G Cash Fund | 3.2% p.a. | 0.38% p.a. |
| Phoenix Life With Profits Fund | 3.0% p.a. | 0.66% p.a. |
| Prudential With Profits Fund | 5.9% p.a. | 1.125% p.a. |
Value for member assessment
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Member borne charges and transaction costs
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Default fund arrangements
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