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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 (%) Transaction costs (%)
L&G
Cash Lifestyle Strategy 0.43 – 0.47
(depending upon term to retirement)
0.00 - 0.05
(depending upon term to retirement)
World Equity Index 0.46 0.07
Future World 0.58 0.11
UK Equity Index 0.44 0.04
Global Real Estate Equity Index 0.53 0.07
Multi-Asset 0.47 0.05
Future World Multi-Asset 0.50 0.07
Future World Annuity Aware 0.46 0.08
All Stocks Index-Linked Gilts 0.42 0.18
Cash 0.43 0.00
Phoenix Life
Deposit Administration Not applicable1 Not available2
Prudential
With Profits 1.043 0.17

 

Source: Providers

1 There are no explicit charges on the Phoenix Life Deposit Administration Fund.

2 The Trustee requested the most recent transaction cost information from Phoenix Life but at the time of writing this statement, no transaction costs have been provided by Phoenix Life.

3 For the Prudential With Profits Fund, a charge is deducted through the bonus mechanism. This is currently estimated to be 1.04% p.a. assuming future investment returns in the With Profits Fund are 5.00% p.a. When expressed as a percentage, the charges on with profits business depend on the performance of the With Profits Fund and, in particular, the investment returns achieved and the expenses incurred.

Example illustrations of the impact of fund charges and costs on member's DC fund values

  • Example member 1: the youngest member (age 41) who is therefore 24 years from their retirement age of 65 with a current fund of £950
  • Example member 2: a member of average age (age 60) who is therefore five years from their retirement age of 65 with a current fund of £3,250

The effect of costs and charges on the Cash Lifestyle Strategy, the Future World Fund (the fund with the highest charges) and the Cash Fund (the fund with the lowest charges) have been illustrated, as these are the investment options with the most assets under management and the highest and lowest charges, respectively.

The examples below illustrate the effect of the costs and charges at different ages on these example members’ projected retirement pots.

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 £950 £950 £0
20 £1,100 £1,080 £20
15 £1,320 £1,270 £50
10 £1,580 £1,490 £90
5 £1,900 £1,750 £150
0 £2,210 £2,000 £210

Future World Fund (highest cost)

Years to retirement Fund value before charges Fund value after charges Impact of charges
24 £950 £950 £0
20 £1,130 £1,100 £30
15 £1,400 £1,320 £80
10 £1,730 £1,590 £140
5 £2,150 £1,910 £240
0 £2,660 £2,300 £360

Cash Fund (lowest cost)

Years to retirement Fund value before charges Fund value after charges Impact of charges
24 £950 £950 £0
20 £980 £960 £20
15 £1,010 £980 £30
10 £1,040 £990 £50
5 £1,080 £1,010 £70
0 £1,120 £1,020 £100

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
5 £3,250 £3,250 £0
0 £3,780 £3,700 £80

Future World Fund (highest cost)

Years to retirement Fund value before charges Fund value after charges Impact of charges
5 £3,250 £3,250 £0
0 £4,030 £3,910 £120

Cash Fund (lowest cost)

Years to retirement Fund value before charges Fund value after charges Impact of charges
5 £3,250 £3,250 £0
0 £3,360 £3,300 £60

  • Example member 3: the youngest member (age 50) who is therefore 15 years from their retirement age of 65 with a current fund of £300
  • Example member 4: a member of average age (age 56) who is therefore 9 years from their retirement age of 65 with a current fund of £900

Example member 3:

The example below illustrates the effect of the costs and charges at different ages on this example members’ projected retirement pot.

Prudential With Profits Fund

Years to retirement Fund value before charges Fund value after charges Impact of charges
15 £300 £300 £0
10 £350 £330 £20
5 £420 £370 £50
0 £490 £420 £70

Example member 4:

The example below illustrates the effect of the costs and charges at different ages on this example members’ projected retirement pot.

Prudential With Profits Fund

Years to retirement Fund value before charges Fund value after charges Impact of charges
9 £900 £900 £0
5 £1,030 £980 £50
0 £1,210 £1,100 £110

  • Projected 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 and as at 31 March 2023 for Prudential;
  • 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 2.5% 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% – 6.3% p.a.
depending upon term to retirement
0.38% – 0.45% p.a.
depending upon term to retirement
L&G Future World Fund 7.0% p.a. 0.66% p.a.
L&G Cash Fund 3.2% p.a. 0.38% p.a.
Prudential 5.9% p.a. 1.13% p.a.
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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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