The default is where members are invested if they haven’t made a selection of their own.
The following arrangements are “default arrangements” in regard to the Plan for the purposes of the Administration Regulations:
- Fidelity Chevron Equity/Bond Split 50/50 Lifestyle Strategy (the “Core Default Arrangement”)
- Fidelity BlackRock World (ex-UK) Equity Index Fund
- Fidelity Blackrock UK Equity Index Fund
- Fidelity Blackrock Equity/Bond Split 75/25 Fund
- Fidelity Blackrock Over 15 Years UK Gilt Index Fund
- Fidelity Blackrock Cash Fund
Together referred to as the “Default Arrangements”.
The Core Default Arrangement is the arrangement that contributions in respect of the DC Element of New Section members of the Plan are paid into if a member does not make an alternative choice.
The Fidelity BlackRock World (ex-UK) Equity Index Fund is classified as default arrangement because some members invested in it previously chose to invest in the four regional equity funds that were mapped to this arrangement by the Trustee as part of the fund consolidation exercise in 2016.
The other four funds above are classified as default arrangements because they contain investments from certain members who previously held additional voluntary contribution (AVC) assets with Utmost Life and Pensions (held as part of Equitable Life prior to the implementation of its Guarantee Exchange Scheme effective on 1 January 2020) that were mapped into these arrangements as part of an AVC consolidation exercise which took place during 2020.
The aims and objectives of the Core Default Arrangement are to provide good outcomes for members by targeting growth with an appropriate degree of risk during a member’s early years of investment, and gradually moving to investment in a lower risk cash fund as the member approaches their selected retirement date (the movement towards lower risk investments being referred to in this statement as the “lifestyle strategy”). The default lifestyle strategy moves towards being 100% invested in Fidelity BlackRock Cash Fund at retirement to mitigate potentially mismatching risk by investing in the way in which members commonly take their accrued defined contribution funds at retirement.
The aims and objectives of the Fidelity BlackRock Cash Fund are to provide a secure investment option for members who wish to take a low level of investment risk. As well as being a default arrangement in its own right following the AVC consolidation exercise in 2020, it is used to provide part of the lifestyling element of the Core Default Arrangement.
The Fidelity BlackRock World (ex-UK) Equity Index Fund invests in shares of overseas companies (Europe ex UK, Japan, Pacific Rim, US and Canadian markets) according to market capitalisation weightings and aims to produce a return in line with its benchmark, which is the FTSE All-World Developed ex UK Index. The aims and objectives of this Fund are to provide members with an equity-based investment option that meets their risk and return requirements and to give members the freedom to structure their own investment portfolio from the range of different asset classes that are made available.
The Fidelity Blackrock UK Equity Index Fund invests in shares of UK companies and aims to produce a return in line with the FTSE All Share Index. The objective of the Fund is to provide an equity-based investment option giving investors UK investment exposure.
The Fidelity Blackrock Equity/Bond Split 75/25 Fund invests in passively managed funds which invest in global equities (75%), corporate bonds (18.75%) and in Government index-linked securities (6.25%). The Fund aims to provide long term capital growth (by investing a significant proportion of its assets in equities), whilst investing a small element invested in bonds and government index-linked securities in order to reduce the potential investment volatility of the fund. It aims to provide a return in line with its benchmark, which is composite benchmark based on UK, overseas equity, and corporate bond and gilt indexes, in line with the target asset allocations.
The Fidelity Blackrock Over 15 Years UK Gilt Index Fund is designed to provide members with a lower risk investment option that also provides protection against inflation. It does this by tracking the performance of the FTSE Actuaries UK Conventional Gilts Over 15 Years Index. It should be noted that like other bond funds, this Fund has produced significant negative performance over the year. However the fund has performed within a reasonable tolerance of its benchmark. A key aim of this fund is to provide some protection against movements in the cost of purchasing an annuity, by tracking the movement in annuity prices. Over the year annuity prices have decreased significantly and in some cases the price decrease more than exceeds the fall in gilt returns.
Below are the different funds and charges we’ve assumed in our example scenarios. A list of all the funds available in the Plan and their charges can be found in the Chair Statement in the Documents section.
| Name | Costs and charges met by members |
|---|---|
| Core Default Arrangement | 0.200% to 0.249% |
| Fidelity BlackRock World (exUK) Equity Index Fund | 0.26% |
| Fidelity BlackRock UK Equity Index Fund | 0.26% |
| Fidelity BlackRock Over 15 Years UK Gilt Index Fund | 0.20% |
| Fidelity BlackRock Cash Fund | 0.20% |
| Fidelity Chevron Equity/Bond Split 75/25 Fund | 0.27% |
The illustrations below show the projected fund values based on certain assumptions before and after charges so the potential impact of charges is clearly shown.
Members should be aware these are simply illustrations, and so the actual fund values and implication of charges for members’ investments may be different if members’ personal details or investment choices differ from those shown or the assumptions are not borne out. For further details, please refer to the DC Chair Statement found in the Documents section of this website and refer to Appendix 2.
The Default Funds
| Fidelity Chevron Equity/Bond Split 50/50 Lifestyle Strategy | Fidelity Chevron Equity/Bond Split 50/50 Lifestyle Strategy | Fidelity Chevron Equity/Bond Split 75/25 Fund | Fidelity Chevron Equity/Bond Split 75/25 Fund | Fidelity BlackRock Cash Fund | Fidelity BlackRock Cash Fund | Fidelity BlackRock UK Equity Fund | Fidelity BlackRock UK Equity Fund | Fidelity BlackRock World (ex-UK) Equity Index Fund | Fidelity BlackRock World (ex-UK) Equity Index Fund | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Example member | Years | Before charges | After charges | Before charges | After charges | Before charges | After charges | Before charges | After charges | Before charges | After charges |
| New Section 'Over the Cap' members (youngest member) | 1 | £3,700 | £3,600 | £3,700 | £3,700 | £3,600 | £3,600 | £3,700 | £3,700 | £3,700 | £3,700 |
| 3 | £5,000 | £5,000 | £5,100 | £5,000 | £4,700 | £4,700 | £5,100 | £5,100 | £5,100 | £5,100 | |
| 5 | £6,500 | £6,400 | £6,600 | £6,500 | £5,800 | £5,700 | £6,700 | £6,600 | £6,700 | £6,600 | |
| 10 | £10,300 | £10,100 | £10,700 | £10,500 | £8,500 | £8,400 | £11,100 | £10,800 | £11,100 | £10,800 | |
| 15 | £15,600 | £15,200 | £16,400 | £15,900 | £12,000 | £11,800 | £17,100 | £16,600 | £17,100 | £16,700 | |
| 20 | £21,700 | £21,000 | £23,100 | £22,200 | £15,500 | £15,100 | £24,500 | £23,500 | £24,500 | £23,700 | |
| 25 | £29,500 | £28,400 | £31,700 | £30,300 | £19,800 | £19,200 | £34,100 | £32,500 | £34,100 | £32,700 | |
| 30 | £38,400 | £36,600 | £41,800 | £39,700 | £24,000 | £23,300 | £45,500 | £43,100 | £45,500 | £43,300 | |
| 35 | £48,400 | £45,800 | £53,400 | £50,300 | £28,200 | £27,200 | £59,100 | £55,400 | £59,100 | £55,800 |
| Fidelity Chevron Equity/Bond Split 50/50 Lifestyle Strategy | Fidelity Chevron Equity/Bond Split 50/50 Lifestyle Strategy | Fidelity Chevron Equity/Bond Split 75/25 Fund | Fidelity Chevron Equity/Bond Split 75/25 Fund | Fidelity BlackRock Cash Fund | Fidelity BlackRock Cash Fund | Fidelity BlackRock UK Equity Fund | Fidelity BlackRock UK Equity Fund | Fidelity BlackRock World (ex-UK) Equity Index Fund | Fidelity BlackRock World (ex-UK) Equity Index Fund | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Example member | Years | Before charges | After charges | Before charges | After charges | Before charges | After charges | Before charges | After charges | Before charges | After charges |
| New Section 'Over the Cap' members (average member) | 1 | £41,700 | £41,600 | £41,900 | £41,800 | £40,600 | £40,500 | £42,100 | £42,000 | £42,100 | £42,000 |
| 3 | £47,400 | £47,100 | £48,100 | £47,700 | £43,700 | £43,500 | £48,700 | £48,300 | £48,700 | £48,400 | |
| 5 | £53,600 | £53,000 | £54,800 | £54,100 | £47,000 | £46,600 | £56,000 | £55,200 | £56,000 | £55,300 | |
| 10 | £72,300 | £70,700 | £75,300 | £73,400 | £56,900 | £55,900 | £78,300 | £76,300 | £78,300 | £76,600 | |
| 15 | £93,400 | £90,400 | £98,900 | £95,400 | £66,500 | £64,900 | £104,700 | £100,900 | £104,700 | £101,400 | |
| 19 | £112,100 | £107,700 | £120,400 | £115,200 | £74,000 | £71,800 | £129,300 | £123,500 | £129,300 | £124,100 |
| Fidelity Chevron Equity/Bond Split 50/50 Lifestyle Strategy | Fidelity Chevron Equity/Bond Split 50/50 Lifestyle Strategy | Fidelity Chevron Equity/Bond Split 75/25 Fund | Fidelity Chevron Equity/Bond Split 75/25 Fund | Fidelity BlackRock Cash Fund | Fidelity BlackRock Cash Fund | Fidelity BlackRock UK Equity Fund | Fidelity BlackRock UK Equity Fund | Fidelity BlackRock World (ex-UK) Equity Index Fund | Fidelity BlackRock World (ex-UK) Equity Index Fund | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Example member | Years | Before charges | After charges | Before charges | After charges | Before charges | After charges | Before charges | After charges | Before charges | After charges |
| DB AVC payers (youngest member) | 1 | £3,600 | £3,600 | £3,600 | £3,600 | £3,500 | £3,500 | £3,600 | £3,600 | £3,600 | £3,600 |
| 3 | £6,800 | £6,800 | £6,900 | £6,800 | £6,400 | £6,400 | £6,900 | £6,900 | £6,900 | £6,900 | |
| 5 | £10,200 | £10,100 | £10,400 | £10,300 | £9,400 | £9,300 | £10,500 | £10,400 | £10,500 | £10,400 | |
| 10 | £19,500 | £19,200 | £20,100 | £19,700 | £16,500 | £16,300 | £20,600 | £20,300 | £20,600 | £20,300 | |
| 15 | £30,000 | £29,300 | £31,200 | £30,500 | £23,600 | £23,200 | £32,600 | £31,700 | £32,600 | £31,800 | |
| 20 | £41,800 | £40,500 | £44,200 | £42,700 | £30,400 | £29,700 | £46,700 | £45,000 | £46,700 | £45,200 | |
| 25 | £55,100 | £53,000 | £59,100 | £56,600 | £37,100 | £36,100 | £63,400 | £60,600 | £63,400 | £60,900 | |
| 30 | £70,100 | £66,900 | £76,300 | £72,400 | £43,600 | £42,200 | £83,100 | £78,700 | £83,100 | £79,200 | |
| 31 | £73,400 | £69,800 | £80,100 | £75,900 | £44,900 | £43,400 | £87,500 | £82,600 | £87,500 | £83,200 |
| Fidelity Chevron Equity/Bond Split 50/50 Lifestyle Strategy | Fidelity Chevron Equity/Bond Split 50/50 Lifestyle Strategy | Fidelity Chevron Equity/Bond Split 75/25 Fund | Fidelity Chevron Equity/Bond Split 75/25 Fund | Fidelity BlackRock Cash Fund | Fidelity BlackRock Cash Fund | Fidelity BlackRock UK Equity Fund | Fidelity BlackRock UK Equity Fund | Fidelity BlackRock World (ex-UK) Equity Index Fund | Fidelity BlackRock World (ex-UK) Equity Index Fund | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Example member | Years | Before charges | After charges | Before charges | After charges | Before charges | After charges | Before charges | After charges | Before charges | After charges |
| DB AVC payers (average member) | 1 | £73,000 | £72,800 | £73,300 | £73,100 | £71,000 | £70,800 | £73,600 | £73,400 | £73,600 | £73,400 |
| 3 | £89,500 | £88,800 | £90,600 | £89,900 | £82,800 | £82,300 | £91,800 | £91,000 | £91,800 | £91,100 | |
| 5 | £106,800 | £105,600 | £109,000 | £107,600 | £94,500 | £93,700 | £111,200 | £109,800 | £111,200 | £109,900 | |
| 10 | £153,900 | £150,700 | £159,800 | £156,200 | £123,400 | £121,400 | £165,800 | £161,900 | £165,800 | £162,300 | |
| 12 | £174,500 | £170,200 | £182,200 | £177,400 | £134,700 | £132,200 | £190,400 | £185,100 | £190,400 | £185,700 |
| Fidelity Chevron Equity/Bond Split 50/50 Lifestyle Strategy | Fidelity Chevron Equity/Bond Split 50/50 Lifestyle Strategy | Fidelity Chevron Equity/Bond Split 75/25 Fund | Fidelity Chevron Equity/Bond Split 75/25 Fund | Fidelity BlackRock Cash Fund | Fidelity BlackRock Cash Fund | Fidelity BlackRock UK Equity Fund | Fidelity BlackRock UK Equity Fund | Fidelity BlackRock World (ex-UK) Equity Index Fund | Fidelity BlackRock World (ex-UK) Equity Index Fund | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Example member | Years | Before charges | After charges | Before charges | After charges | Before charges | After charges | Before charges | After charges | Before charges | After charges |
| Deferred New Section member (youngest member) | 1 | £1,000 | £1,000 | £1,000 | £1,000 | £1,000 | £1,000 | £1,000 | £1,000 | £1,000 | £1,000 |
| 3 | £1,100 | £1,100 | £1,100 | £1,100 | £1,000 | £1,000 | £1,100 | £1,100 | £1,100 | £1,100 | |
| 5 | £1,100 | £1,100 | £1,200 | £1,100 | £1,000 | £1,000 | £1,200 | £1,200 | £1,200 | £1,200 | |
| 10 | £1,300 | £1,200 | £1,300 | £1,300 | £1,000 | £900 | £1,400 | £1,400 | £1,400 | £1,400 | |
| 15 | £1,400 | £1,400 | £1,500 | £1,500 | £900 | £900 | £1,700 | £1,600 | £1,700 | £1,600 | |
| 20 | £1,600 | £1,500 | £1,800 | £1,700 | £900 | £900 | £2,000 | £1,800 | £2,000 | £1,900 | |
| 25 | £1,800 | £1,700 | £2,100 | £1,900 | £900 | £800 | £2,300 | £2,100 | £2,300 | £2,200 | |
| 30 | £2,100 | £1,900 | £2,400 | £2,200 | £900 | £800 | £2,700 | £2,500 | £2,700 | £2,500 | |
| 35 | £2,300 | £2,100 | £2,700 | £2,500 | £800 | £800 | £3,200 | £2,900 | £3,200 | £2,900 | |
| 39 | £2,600 | £2,300 | £3,100 | £2,700 | £800 | £800 | £3,700 | £3,300 | £3,700 | £3,300 |
| Fidelity Chevron Equity/Bond Split 50/50 Lifestyle Strategy | Fidelity Chevron Equity/Bond Split 50/50 Lifestyle Strategy | Fidelity Chevron Equity/Bond Split 75/25 Fund | Fidelity Chevron Equity/Bond Split 75/25 Fund | Fidelity BlackRock Cash Fund | Fidelity BlackRock Cash Fund | Fidelity BlackRock UK Equity Fund | Fidelity BlackRock UK Equity Fund | Fidelity BlackRock World (ex-UK) Equity Index Fund | Fidelity BlackRock World (ex-UK) Equity Index Fund | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Example member | Years | Before charges | After charges | Before charges | After charges | Before charges | After charges | Before charges | After charges | Before charges | After charges |
| Deferred New Section member (average member) | 1 | £28,700 | £28,600 | £28,800 | £28,700 | £27,900 | £27,800 | £29,000 | £28,900 | £29,000 | £28,900 |
| 3 | £30,100 | £29,900 | £30,500 | £30,300 | £27,600 | £27,400 | £31,000 | £30,700 | £31,000 | £30,700 | |
| 5 | £31,600 | £31,200 | £32,300 | £31,900 | £27,300 | £27,000 | £33,100 | £32,600 | £33,100 | £32,700 | |
| 10 | £35,600 | £34,700 | £37,400 | £36,300 | £26,700 | £26,100 | £39,200 | £38,000 | £39,200 | £38,100 | |
| 11 | £36,500 | £35,400 | £38,500 | £37,200 | £26,500 | £25,900 | £40,500 | £39,200 | £40,500 | £39,300 |
When we show figures
When projecting pension savings, we show the value in today’s terms, which means we have already taken into account the impact that inflation may have on the buying power of those pension savings. Some funds may not be expected to grow as much as inflation and so the buying power of those pension savings would be expected to go down over time.
Inflation is assumed to be 2.5% each year.
Values shown are estimates and are not guaranteed.