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The Plan’s default option is a Flexi-access Lifestyle Strategy. The Trustees have chosen this option as the default because they believe it’s suitable for a typical Plan member.

Your savings will be invested in the default option unless you choose a Self Select option and decide how to invest your retirement savings from a range of funds selected as appropriate for the Plan by the Trustees.

Is the default option right for you?

It might be right for you, but don’t assume that because the Trustees have selected a ‘default’ investment option that they recommend it for you or that it’s right for everyone. We all have different personal circumstances – the Trustees can’t take these into account when selecting a default. Ultimately, you’re responsible for deciding which investment option best suits your circumstances. So it makes sense to find out more…

  • What is the default investment?

    The default investment arrangement (the default arrangement) is designed for members who join the Plan and do not choose an investment option. The Trustees are responsible for investment governance, which includes setting and monitoring the investment strategy for the default.

    When deciding on the Plan’s investment strategy, the Trustees recognise that most members do not take active investment decisions and instead invest in the default arrangement. After taking advice, the Trustees decided to make the default arrangement a lifestyle strategy, which means that members’ assets are automatically moved between different investment funds as they approach retirement date.

    Details of the objectives and the Trustees’ policies regarding the default arrangement are set out in the Plan’s Statement of Investment Principles (“SIP”). The SIP can be found here.

    The aims and objectives of the default arrangement, as stated in the SIP, are as follows:

    The Trustees’ will provide members with access to a default investment option that the Trustees believe to be reasonable for those members that do not wish to make their own investment decisions. The objective of the default option is to generate returns significantly above inflation whilst members are some distance from retirement, but then to switch automatically and gradually to lower risk investments as members near retirement.

    The default arrangement was not reviewed during the period covered by this statement. However, the investment arrangements, including the default, were last reviewed in 2016. As a result of that review, a new default investment lifestyle was designed for members who wish to draw down their income in retirement. The previous lifestyle was left open as a self-select option. Two new blended funds were introduced, the Dresdner Kleinwort Diversified Growth Fund and the Dresdner Kleinwort Diversified Bond Fund. These are both used in the new lifestyle and are also available on a stand-alone basis as self-select options.

    These changes were implemented in December 2017.

    In 2019, the Trustees have entered a full buy-in of the Plan with Pensions Insurance Corporation (“PIC”). This will be followed by a wind-up of the Plan in due course. Therefore no review of the investment strategy will be undertaken in 2019, but the Trustees will continue to monitor the performance of the default strategy against its objectives.