EY Defined
Contribution Plan
Member Guide
Contents
02 The EY Defined Contribution Plan
03 Step 1 How does the Plan work?
06 Step 2 Basics of investing
13 Step 3 What are my investment options and what do I have to do?
34 Important information you should read
37 Step 4 How can I keep track of my pension?
Standard Life Master Trust Co Ltd have been appointed
to provide the Trustee duties. This company is
made up of five directors, who are all independent
of Standard Life, and who are all leading pensions
specialists. This gives confidence that all members’
interests are represented to the highest level.
Welcome to the EY
Defined Contribution Plan –
provided by Standard Life.
Planning for the future is important.
The Trustees of the Ernst & Young
Money Purchase Plan and the
Ernst & Whinney COMP Scheme
wrote to you previously about
the transfer of your pension
savings from your previous EY
arrangement to Standard Life.
The new Plan, the Standard Life
DC Master Trust, aims to help
you prepare for your future and
this guide will help explain how
the Plan works.
The Plan is a market‑leading
“Master Trust” type of
pension arrangement, built
on Standard Life’s strong
foundations. The Plan offers:
Once you’re a member,
Standard Life will provide
the administration,
investment platform and
support communications.
The role of the Trustee
The Trustee is responsible for:
¬¬Running the Plan in line
with current law and
the trust deed and rules
¬¬Looking after the Plan
members’ interests
¬¬Ongoing support
¬¬A range of investment solutions
¬¬A high level of service
Please refer to the Member’s Outline
document held on the website
www.standardlifepensions.com/eydcp
EY Defined Contribution Plan 01
EY Defined
Contribution Plan
Explained in four simple steps
We’ve split this guide into four key steps:
Step 1
How does the Plan work?
Step 2
Basics of investing
Step 3
What are my investment options and
what do I have to do?
Step 4
How can I keep track of my pension?
02 EY Defined Contribution Plan
Step 1
How does the Plan work?
What is a pension?
In its simplest form, the aim of
a pension is to provide you with
an income once you stop working.
The amount you receive when
you retire will depend on:
When you were transferred
over to the Plan, you were told
which funds you were going to
be transferred into. These may
be the right funds for you, but
it’s worth checking out the
other options that are available.
Laws and tax rules may change.
Your personal circumstances also
have an impact on tax treatment.
Remember your pension is a long
term investment designed to help
you save for retirement, which
means you usually can’t access
your fund until age 55 or over.
¬¬The value of your
transfer payment
¬¬The investments chosen and
how they perform less any
fees and charges deducted
¬¬How much it costs to take
a retirement income when
you come to retire
All investments are subject to risk
and the value of your Plan can go
down as well as up and may be
worth less than what was paid in.
Your transfer payment
or
Potential investment
growth
Your
pension pot
Your tax‑free
lump sum
Your pension
income
Our charges
EY Defined Contribution Plan 03
Retirement options
From age 55 you have full
flexibility on how to take
benefits from your pension pot.
A fixed regular income
(annuity) that is guaranteed
for life
This locks you into the
choices you make at that time
and the monthly or annual
annuity payments will be taxed
as income.
A flexible income
This is done by income
drawdown and allows you to
either withdraw regular income
payable monthly or yearly or
take unlimited withdrawals.
All withdrawals are treated as
taxable UK income. You can
change your choices at any time
as your needs become clearer.
04 EY Defined Contribution Plan
Cash
You can now take your full
retirement savings as cash.
Normally, 25% is tax free but
anything over this is taxed as
regular UK income.
You can also have a combination
of the above.
With each of these benefits,
you normally have the option
of taking 25% as tax-free cash.
Not all of these retirement
income options are available
under this product. You can
easily access these new options
by transferring to another
product at retirement that allows
this.
If you choose a flexible income
option, it’s important to
remember that your money stays
invested, so its value can go up
and down. You may get less back
than you paid in. And, if you take
it all out as cash, you need to
think about the tax you’ll pay.
What if I die before
I retire?
If you have another source of
income or want to support others
after you’re gone then leaving
your pension invested could be
the right choice for you. You can
ask us to pass on your remaining
pot to anyone you choose,
inheritance tax-free.
¬¬If you die before age 75, this
will normally be tax-free
¬¬If you die after age 75, this will
normally be taxed as income
Tell the Trustee about
the people and causes
you care about
Make sure you nominate
your chosen beneficiary
and inform your local HR
department and Standard Life.
You can find a nomination form
on the pension website
www.standardlifepensions.com/
eydcp
What you decide is important
so consider this very carefully
and ensure that if your
circumstances change, you keep
your instructions up to date. If
in doubt, you may want to take
financial advice before making
any decisions. There may be a
cost for this.
EY Defined Contribution Plan 05
Step 2
Basics of investing
You can choose where your
Plan is invested from the range
of options shown in this guide.
When you invest, there is always
an element of risk – putting
money into a pension plan is no
different. How you balance this
risk against any potential reward
is the key to investing.
Your opportunity
for growth
The money paid into the Plan is
used to buy units in one or more
investment funds chosen by you.
The price of the units in each
fund depends on the value of
the fund’s assets after charges.
Please note that the value of
investments can go down as
well as up, and may be worth
less than what was paid in.
Asset classes
An ‘asset class’ is a category of
investments, such as equities or
bonds. Normally assets in the same
class have similar characteristics.
However, they can have very
different returns and risks.
The value of the investments
in any asset class can go up or
down, and may be worth less
than what was paid in – there are
no guarantees. Past performance
is not a reliable guide to
future performance.
06 EY Defined Contribution Plan
The asset mix that a fund invests
in is continuously reviewed.
It may be changed in line with
developments in the relevant
markets. Part of each fund may
be held in cash and other money
market instruments. Read this
section for more information.
Equities
What are they?
Equities are part ownership in
a company, usually known as
stocks or shares.
What’s the potential return?
The return on equities comes
from growth in the value of the
shares, plus any income from
dividends. For overseas equities,
changes in the foreign currency
exchange rates could also
significantly affect returns.
What are the risks?
Equities are one of the more
volatile asset classes – although
they can offer good growth
potential, their value can rise
or drop sharply at any time.
Because of this volatility,
equities should normally
be viewed as a long
term investment.
Bonds
Property
What are they?
What is it?
Bonds are essentially loans
to a government or company.
These loans are often for a set
time period and the bond owner
usually receives regular interest
payments. Bonds issued by the
UK government are called ‘gilts’
and those issued by a company
are ‘corporate bonds’.
Property investing includes
direct investments in buildings
and land, as well as indirect
investments such as shares
in property companies.
What’s the potential return?
The return is a combination of any
interest received and any change
in the bond’s value. For overseas
bonds, changes in the foreign
currency exchange rates could
also significantly affect returns.
What are the risks?
A bond’s return will be affected if:
¬¬the interest or capital can’t be
paid back in full or on time
¬¬the credit worthiness of the
company or government reduces
¬¬interest rates or foreign currency
exchange rates change
Bonds can be traded on the
stock market, so their value
can go up and down at any time.
Some bonds are riskier than others,
e.g. bonds issued for a longer
time period or by companies
which are viewed as risky.
What’s the potential return?
The return from a direct
investment in property is a
combination of rental income
and any change in the property
value. In comparison, the return
on property securities can be
similar to equities (see ‘equities’
asset class description for
potential returns and risks).
What are the risks?
The value of direct property is
generally based on a valuer’s
opinion and is not fact. Property
can take a lot longer to sell than
other types of investment, so
you might not be able to sell
when you want to get the price
you were hoping for. Property
securities, like equities, can
have sharp changes in value
at any time.
The values of different types
of property do not necessarily
move in line with each other.
For example commercial property
could be losing value even if
house prices are going up.
EY Defined Contribution Plan 07
Money Market Instruments
(including cash)
What are they?
Standard Life uses asset classes
to categorise its fund range.
It categorises some funds as
‘other’ because they invest in
more than one type of asset and
therefore can’t be categorised
as any individual asset class.
Alternatively, funds can be
classed as ‘other’ because they
don’t meet the criteria of the
recognised industry sectors or
they haven’t provided enough
information to be categorised.
Money market instruments
include deposits with banks
and building societies, as well
as governments and large
corporations. They also include
other investments that can
have more risk and return than
standard bank deposits. There
are circumstances where money
market instruments can fall
in value.
Investment approaches
What’s the potential return?
Passive investment
The return comes from any
interest received and any change
in the value of the instrument.
What are the risks?
Investments in these
assets are riskier than cash
deposit accounts – in some
circumstances their values
will fall. The return may also
be lower than inflation.
Other
These are investments that
don’t fit into one of the other
asset class categories. They
include direct and indirect
investments in real assets
like commodities, for example
oil or precious metals. They
also include investments with
specialist characteristics.
08 EY Defined Contribution Plan
A passive investment aims,
before charges, to track or
replicate the performance of an
index or indices. The fund will
be affected by market volatility,
but relative performance won’t
be impacted by stock selection.
Active investment
An active investment aims to
achieve returns that are above
average, using fund manager
analysis. The fund manager will
try to outperform the market
by investing in companies
that they believe will provide
higher than average returns.
However, returns are not
guaranteed and there is a chance
of poor performance. These
investments can be more volatile
than passive investments and
are usually more expensive.
Absolute returns
Absolute return funds usually
aim to have a positive return
regardless of market conditions.
Their investment strategies
vary widely, but they often use
complex strategies that make
use of derivatives. Risk and
return will depend on exactly
what the fund invests in, but in
general absolute return funds
can be expected to fall less
than the wider markets when
markets fall, but also to increase
by less than markets when they
rise. Although absolute return
funds aim for consistent positive
returns, there is no guarantee
that they will achieve them,
and the funds can fall in value.
Absolute return funds may have
different risks from other funds
due to the derivatives that they
use, and also because they
may borrow, which increases
potential returns and risk.
Volatility ratings
The volatility rating of a fund indicates how much the fund price might
move compared to other funds. The higher the volatility rating, the less
stable the fund price is likely to be. You can use this to help you decide
how much risk you are comfortable taking with your investments.
Less
Volatile
0
1
2
3
We regularly review volatility
ratings for funds, and these
may change.
We set ratings based on our experts’
judgement, using data on:
¬¬How the fund price has varied
from month to month in the
past, compared to other
funds available
¬¬How investments in similar
asset classes vary from month
to month and the investment
policy of the fund
4
5
6
7
More
Volatile
Typically, higher volatility
ratings mean greater potential
investment returns over the
longer term. But high volatility
funds are more likely to
suddenly fall or rise in value.
The volatility rating is not the
only factor you should consider
when selecting a fund. If you’re
not sure which funds to choose,
please seek advice from a
financial adviser.
EY Defined Contribution Plan 09
Charges for your funds
Fund management charge
We apply a charge to money
invested in our funds. This is
known as the fund management
charge (FMC) and is shown as an
annual rate. However, we deduct
the charge from each fund on a
daily basis, which has the effect
of reducing its unit price.
Additional expenses
Additional expenses may be
deducted from some funds. They
include items such as custodian,
third party administration,
trustee, registrar, auditor and
regulator fees. Where a fund
invests in other underlying
funds, they may also include the
underlying management charges.
As the additional expenses relate
to expenses incurred during
the fund management process,
they will regularly increase and
decrease as a percentage of the
fund, sometimes significantly.
10 EY Defined Contribution Plan
The additional expenses figure
shown is the annual rate of the
charge. But where additional
expenses apply, they are taken
into account when the fund’s
unit price is calculated each day.
If a performance fee applies
to a fund, it is included in
the additional expenses
figure retrospectively.
All additional expenses figures
shown are rounded to two
decimal places. This means that
although additional expenses
may apply to some funds, they
may show as 0.00% as we have
rounded to two decimal places.
Plan rebate
We have agreed to provide
enhanced terms to give you a
rebate on some of the amount
you have invested in each fund.
The figure shown is the annual
rate of the rebate, although
the rebate is given to you as
additional units in your fund
each month. This reduces
the effect of the FMC and
additional expenses.
Effective total annual
fund charge
However, it will be affected by
factors such as:
The effective total annual fund
charge is the FMC plus additional
expenses, minus any plan rebate
which applies.
¬¬the period it has been
measured over
For example, if you invest in a
Standard Life fund with an FMC
of 1.10%, additional expenses
of 0.02% and a rebate of 0.73%,
this will give an effective total
annual fund charge of 0.39%.
The charges and rebates which
apply to each fund are shown
later in this guide.
The FMC and additional expenses
are deducted daily, while the plan
rebate is applied monthly. So
over the long term, the actual net
amount of the FMC and additional
expenses, minus the plan rebate,
should be close to the effective
total annual fund charge.
¬¬daily changes in fund values
Charges and rebates are not
guaranteed. They are regularly
reviewed and may be changed
in the future. The information in
this guide is correct as at the end
April 2015.
EY Defined Contribution Plan 11
“I don’t want to work
past 65. Having a good
pension means I can retire
earlier and enjoy life.”
12 EY Defined Contribution Plan
Step 3
What are my investment options
and what do I have to do?
Choosing where to invest
your money is one of the most
important decisions you have
to make when arranging a
pension. Many people find
this task confusing.
To help make your life easier,
a range of investment options
have been selected by the
Trustee, which are believed
to be appropriate for pension
plan investments.
Your options
Through the Plan you can:
¬¬Choose a lifestyle profile
that evolves with you over
your lifetime
¬¬Make your own investment
choices from the range of
funds that have been selected
for you
You can choose to invest in
a lifestyle profile and the self
select funds.
If you would like more
information on any of the
funds from Standard Life,
please contact us on:
0345 278 5643 (call charges
will vary) or visit the website at
www.standardlife.co.uk/funds
If you are in any doubt as to
which investment option(s)
you should choose, we strongly
recommend you seek advice
from a financial adviser. There
may be a cost for this.
All funds are subject to risk and
the value of units in funds can
go down as well as up and your
investment may be worth less
than what was paid in.
EY Defined Contribution Plan 13
1. The low-involvement option
The low-involvement option is the Active Plus III Universal Strategic Lifestyle Profile (SLP).
You can see how this works in the graph below. You should also read pages 15-21 for more
information about SLPs.
% of investments
Active Plus III Universal SLP (S3AP)
100
90
80
70
60
50
40
30
20
10
0
>109876543213
months
Years to retirement Fund name
Standard Life Active Plus III
Pension Fund
Standard Life Pre Retirement
(Active Plus Universal)
Pension Fund
Standard Life At Retirement
(Active Plus Universal)
Pension Fund
1
0.73%
Effective
total annual
fund charge
0.39%
Active/
Passive
investment1
Active
0.02%
0.73%
0.39%
Active
0.01%
0.73%
0.36%
Active
Fund
code
Volatility FMC
rating
Additional Plan
expenses rebate
DDNA
4
1.10%
0.02%
BDAE
3
1.10%
BDAD
2
1.08%
Please see the Basics of investing section for an explanation of active/passive investments.
The charges and rebates are not guaranteed. They are regularly reviewed and may be changed in the future.
If you need more help to understand this table, please see the Basics of investing section.
14 EY Defined Contribution Plan
2. Other strategic
lifestyle profiles –
EY and the Trustee have worked
hard to come up with a range of
strategic lifestyle profiles (SLPs)
for you to choose from if you do
not want to invest in the lowinvolvement option.
Before making this choice,
you should read the Strategic
lifestyle profiles – how do they
work? section.
These SLPs aren’t
recommendations. You can
choose from this range or from
the wider range of funds that are
available to you.
You can choose to invest in an
SLP and the self select funds.
You can also invest in up to
three SLPs, although you can
only invest in one SLP for each
payment source. Examples of
payment sources are your own
regular payments, the regular
payments your employer makes
to your plan and any transfer
payments from other pension
plans. For more information on
your options, you should contact
your local HR department.
For more details about the
SLPs selected by EY and
the Trustee, please read our
strategic lifestyle profile guides
(Universal, Annuity, Lump Sum
and Active Retirement).
All funds are subject to risk and
the value of units in funds can
go down as well as up and your
investment may be worth less
than what was paid in.
EY Defined Contribution Plan 15
Profile name
Profile
code
FMC
Additional
expenses
Plan
rebate
Effective
total annual
fund charge
Active/
Passive
investment1
Active Plus II Universal SLP
S2AP
1.10%
0.02%
0.73%
0.39%
Active
Active Plus III Universal SLP 2
S3AP
1.10%
0.02%
0.73%
0.39%
Active
Active Plus IV Universal SLP
S4AP
1.15%
0.02%
0.73%
0.44%
Active
Active Plus V Universal SLP
S5AP
1.15%
0.03%
0.73%
0.45%
Active
Active Plus I Annuity SLP
A1AP
1.10%
0.01%
0.73%
0.38%
Active
Active Plus II Annuity SLP
A2AP
1.00%
0.12%
0.73%
0.39%
Active
Active Plus III Annuity SLP
A3AP
1.10%
0.02%
0.73%
0.39%
Active
Active Plus IV Annuity SLP
A4AP
1.15%
0.02%
0.73%
0.44%
Active
Active Plus V Annuity SLP
A5AP
1.15%
0.03%
0.73%
0.45%
Active
Active Plus I Lump Sum SLP
C1AP
1.10%
0.01%
0.73%
0.38%
Active
Active Plus II Lump Sum SLP
C2AP
1.10%
0.02%
0.73%
0.39%
Active
Active Plus III Lump Sum SLP
C3AP
1.10%
0.02%
0.73%
0.39%
Active
Active Plus IV Lump Sum SLP
C4AP
1.15%
0.02%
0.73%
0.44%
Active
Active Plus V Lump Sum SLP
C5AP
1.15%
0.03%
0.73%
0.45%
Active
Active Plus II Active Retirement
SLP
R2AP
1.00%
0.40%
0.73%
0.67%
Active
Active Plus III Active Retirement
SLP
R3AP
1.00%
0.40%
0.73%
0.67%
Active
Active Plus IV Active Retirement
SLP
R4AP
1.00%
0.40%
0.73%
0.67%
Active
Active Plus V Active Retirement
SLP
R5AP
1.00%
0.40%
0.73%
0.67%
Active
Passive Plus II Universal SLP
U2PP
1.00%
0.03%
0.73%
0.30%
Active
Passive Plus III Universal SLP
U3PP
1.00%
0.03%
0.73%
0.30%
Active
Passive Plus IV Universal SLP
U4PP
1.00%
0.04%
0.73%
0.31%
Active
Passive Plus V Universal SLP
U5PP
1.00%
0.04%
0.73%
0.31%
Active
16 EY Defined Contribution Plan
Passive Plus I Annuity SLP
A1PP
1.00%
0.01%
0.73%
0.28%
Active
Passive Plus II Annuity SLP
A2PP
1.00%
0.03%
0.73%
0.30%
Active
Passive Plus III Annuity SLP
A3PP
1.00%
0.03%
0.73%
0.30%
Active
Passive Plus IV Annuity SLP
A4PP
1.00%
0.04%
0.73%
0.31%
Active
Passive Plus V Annuity SLP
A5PP
1.00%
0.04%
0.73%
0.31%
Active
Passive Plus I Lump Sum SLP
C1PP
1.00%
0.01%
0.73%
0.28%
Active
Passive Plus II Lump Sum SLP
C2PP
1.00%
0.03%
0.73%
0.30%
Active
Passive Plus III Lump Sum SLP
C3PP
1.00%
0.03%
0.73%
0.30%
Active
Passive Plus IV Lump Sum SLP
C4PP
1.00%
0.04%
0.73%
0.31%
Active
Passive Plus V Lump Sum SLP
C5PP
1.00%
0.04%
0.73%
0.31%
Active
Passive Plus II Active Retirement
SLP
R2PP
1.00%
0.40%
0.73%
0.67%
Active
Passive Plus III Active Retirement
SLP
R3PP
1.00%
0.40%
0.73%
0.67%
Active
Passive Plus IV Active Retirement
SLP
R4PP
1.00%
0.40%
0.73%
0.67%
Active
Passive Plus V Active Retirement
SLP
R5PP
1.00%
0.40%
0.73%
0.67%
Active
1
Please see the Basics of investing section for an explanation of active/passive investments.
2
This is the EY Defined Contribution Plan low-involvement investment option.
The charges and rebates are not guaranteed. They are regularly reviewed and may be changed in the future.
If you need more help to understand this table, please see the Basics of investing section.
Lifestyle profile notes:
The figures shown in this table reflect the charges for the most expensive fund in which the lifestyle profile
invests. As you get closer to retirement, the investment aims of the profile move away from growth and
towards preparing your pension for how you plan to take your retirement income. For more information on
how our lifestyle profiles work and how long your investments are held in each fund, please see our strategic
lifestyle profile guides (Universal, Annuity, Lump Sum and Active Retirement).
EY Defined Contribution Plan 17
Strategic lifestyle profiles
– how do they work?
Strategic lifestyle profiles
(SLPs) are investment options
that are specifically designed
to make it easy for you to save
for retirement. Once you’re
in an SLP, you don’t need to
do anything, although we do
recommend that you regularly
review your investments to make
sure they’re on track to meet
your goals.
There are two main stages in
the SLPs:
1. Growth stage – usually when
you’re more than 10 years
from retirement
Your money will be invested in
one of the risk-based Standard
Life Active Plus or Passive Plus
Pension Funds. These funds
aim to increase the value of
your pension over time. Please
remember that investment
growth is not guaranteed. All
funds can go up and down in
value and may be worth less than
the amount invested.
18 EY Defined Contribution Plan
2.Approaching retirement stage
– usually when you’re less
than 10 year from retirement
Your money will gradually and
automatically be moved into
funds designed to get your
investments to where they
need to be when you retire.
Once you’ve chosen the SLP
that’s most appropriate for you,
our experts will:
¬¬manage your money for you
right up until you retire
¬¬decide where you should be
invested and when
¬¬make sure the funds you’re
in don’t take any more or less
risk than they should
One of the features of the SLPs is
flexibility. We can make changes
to them at any time to make
sure they continue to meet your
needs, for example because of
changes in legislation.
Before choosing one of the SLPs
you should consider how you
plan to take your retirement
income. The range of SLPs is
designed to meet the different
options now available to you:
Universal SLPs – if you would
like the flexibility to take your
money the way you want when
you retire, or if you plan to take
your full tax-free lump sum and
use the rest of your pension to
take a flexible income (known
as drawdown).
Annuity SLPs – if you plan to take
your full tax-free lump sum and
buy a fixed annuity with the rest
of your pension. This option may
not be suitable if you plan to buy
an annuity that increases each
year at a rate linked with inflation
(an index-linked annuity).
Lump Sum SLPs – if you plan to
take all of your pension as one or
more lump sums over a relatively
short period.
Active Retirement SLPs – if
you plan to take your flexible
retirement income (also known
as drawdown) through our
Standard Life Active Retirement
investment option.
It’s also important to consider
when you’ll take your retirement
income as the SLPs make
changes to your investments
based on your selected
retirement date. As a result,
they may only be suitable if
you’re planning to take your
retirement income from this date.
EY Defined Contribution Plan 19
About the funds in
the profiles
The following fund explanations
might use words or phrases
you’re not familiar with. Speak
to your financial adviser if you
need an explanation.
1. Growth stage
Standard Life Active Plus
Pension Funds invest in a diverse
range of assets and investment
strategies, including equities,
bonds, property, money market
instruments and absolute returns.
They do this by investing mainly
in actively managed Standard Life
Investment funds. The investment
team can vary the proportions
held in each asset class to try to
take advantage of investment
opportunities they have identified.
Standard Life Passive Plus
Pension Funds invest in a
diverse range of assets and
investment strategies, including
equities, bonds, property,
money market instruments and
absolute returns. They do this
mainly through index‑tracking
(passive) funds managed by
Vanguard Asset Management.
However, they also invest a
proportion in actively managed
absolute return, high yield
bond and property funds from
Standard Life Investments.
20 EY Defined Contribution Plan
There are five funds within each
range, designed to closely match
a different attitude to risk –
I being the lowest and V being
the highest.
I
This option is designed for those
who are conservative with their
investments. They prefer taking
a small amount of risk to achieve
modest or relatively stable
returns. They accept there may
be some short term periods of
fluctuation in value. At this risk
level typically the funds will
have high exposure to lower risk
assets, such as bonds.
Please note that we don’t offer any risk
level I Universal or Active Retirement SLPs
as we don’t believe they’re appropriate
if you’re only prepared to take a small
amount of risk with your investment.
II
This option is designed for those
who are relatively cautious with
their investments. They want
to try to achieve a reasonable
return, and are prepared to
accept some risk in doing so.
Typically these funds will exhibit
relatively modest yet frequent
fluctuations in value. At this risk
level typically the funds will have
a preference towards lower risk
assets, such as bonds.
III
V
This option is designed for
those with a balanced attitude
to risk. They don’t seek risky
investments but don’t avoid
them either. They are prepared to
accept fluctuations in the value
of their investments to try and
achieve better long term returns.
Their investments may be
subject to frequent and at times
significant fluctuations in value.
At this risk level typically the
funds will take a balanced view
on lower and higher risk assets.
This option is designed for
those who are very comfortable
with investment risk. They aim
for high long term investment
returns and do not overly
worry about periods of poorer
performance in the short to
medium term. Ordinarily these
funds can be subject to the full
extent and frequency of stock
market fluctuations. At this risk
level typically the funds will
have high exposure to assets
providing potential for growth,
such as equities.
IV
This option is designed for those
who are relatively comfortable
with investment risk. They aim
for higher long term returns and
understand that this can also
mean some sustained periods
of poorer performance. They are
prepared to accept significant
fluctuations in value to try and
achieve better long term returns.
At this risk level typically the
funds will have a preference to
those assets providing potential
for growth, such as equities.
If you’re unsure about your
attitude to risk and which risk
level might be appropriate
for you, we have a risk
questionnaire to help you.
To access this, please visit
www.standardlife.co.uk/risk
2. Approaching
retirement stage
For information about the
funds within the approaching
retirement stage of the SLPs,
see the strategic lifestyle profile
guides (Universal, Annuity, Lump
Sum and Active Retirement).
EY Defined Contribution Plan 21
As well as the low-involvement option, and the other strategic lifestyle profiles that are
detailed on pages 16 and 17, you can also invest in the following lifestyle profiles.
% of investments
70:30 Equity 10 Year Gilt Index Lifestyle
100
90
80
70
60
50
40
30
20
10
0
>11
109876543213
Years to retirement
Fund name
Fund
code
KKHF
Standard Life 70:30 Global
Equity Tracker (Vanguard)
Pension Fund
SL Vanguard UK Inflation
GGGA
Linked Gilt Index Pension Fund
Standard Life Deposit and
G4
Treasury Pension Fund
1
months
0.73%
Effective
total annual
fund charge
0.29%
Active/
Passive
investment1
Passive
0.02%
0.73%
0.29%
Passive
0.01%
0.73%
0.28%
Active
Volatility FMC
rating
Additional Plan
expenses rebate
5
1.00%
0.02%
4
1.00%
1
1.00%
Please see the Basics of investing section for an explanation of active/passive investments.
The charges and rebates are not guaranteed. They are regularly reviewed and may be changed in the future.
If you need more help to understand this table, please see the Basics of investing section.
22 EY Defined Contribution Plan
% of investments
70:30 Equity 10 Year Fixed Interest Lifestyle
100
90
80
70
60
50
40
30
20
10
0
>11
109876543213
Years to retirement
Fund name
Standard Life 70:30 Global
Equity Tracker (Vanguard)
Pension Fund
SL Vanguard UK Investment
Grade Bond Index Pension
Fund
Standard Life Deposit and
Treasury Pension Fund
1
months
0.73%
Effective
total annual
fund charge
0.29%
Active/
Passive
investment1
Passive
0.02%
0.73%
0.29%
Passive
0.01%
0.73%
0.28%
Active
Fund
code
Volatility FMC
rating
Additional Plan
expenses rebate
KKHF
5
1.00%
0.02%
BFAE
2
1.00%
G4
1
1.00%
Please see the Basics of investing section for an explanation of active/passive investments.
The charges and rebates are not guaranteed. They are regularly reviewed and may be changed in the future.
If you need more help to understand this table, please see the Basics of investing section.
EY Defined Contribution Plan 23
% of investments
60:40 Equity 10 Year Gilt Index Lifestyle
100
90
80
70
60
50
40
30
20
10
0
>11
109876543213
Years to retirement
Fund name
Fund
code
AACG
Standard Life 60:40 Global
Equity Tracker (Vanguard)
Pension Fund
SL Vanguard UK Inflation
GGGA
Linked Gilt Index Pension Fund
Standard Life Deposit and
G4
Treasury Pension Fund
1
months
0.73%
Effective
total annual
fund charge
0.28%
Active/
Passive
investment1
Passive
0.02%
0.73%
0.29%
Passive
0.01%
0.73%
0.28%
Active
Volatility FMC
rating
Additional Plan
expenses rebate
6
1.00%
0.01%
4
1.00%
1
1.00%
Please see the Basics of investing section for an explanation of active/passive investments.
The charges and rebates are not guaranteed. They are regularly reviewed and may be changed in the future.
If you need more help to understand this table, please see the Basics of investing section.
24 EY Defined Contribution Plan
% of investments
60:40 Equity 10 Year Fixed Interest Lifestyle
100
90
80
70
60
50
40
30
20
10
0
>11
109876543213
Years to retirement
Fund name
Standard Life 60:40 Global
Equity Tracker (Vanguard)
Pension Fund
SL Vanguard UK Investment
Grade Bond Index Pension
Fund
Standard Life Deposit and
Treasury Pension Fund
1
months
0.73%
Effective
total annual
fund charge
0.28%
Active/
Passive
investment1
Passive
0.02%
0.73%
0.29%
Passive
0.01%
0.73%
0.28%
Active
Fund
code
Volatility FMC
rating
Additional Plan
expenses rebate
AACG
6
1.00%
0.01%
BFAE
2
1.00%
G4
1
1.00%
Please see the Basics of investing section for an explanation of active/passive investments.
The charges and rebates are not guaranteed. They are regularly reviewed and may be changed in the future.
If you need more help to understand this table, please see the Basics of investing section.
EY Defined Contribution Plan 25
% of investments
70:30 Equity 5 Year Gilt Index Lifestyle
100
90
80
70
60
50
40
30
20
10
0
>6 5 432 1 3
Years to retirement Fund name
Fund
code
KKHF
Standard Life 70:30 Global
Equity Tracker (Vanguard)
Pension Fund
SL Vanguard UK Inflation
GGGA
Linked Gilt Index Pension Fund
Standard Life Deposit and
G4
Treasury Pension Fund
1
months
0.73%
Effective
total annual
fund charge
0.29%
Active/
Passive
investment1
Passive
0.02%
0.73%
0.29%
Passive
0.01%
0.73%
0.28%
Active
Volatility FMC
rating
Additional Plan
expenses rebate
5
1.00%
0.02%
4
1.00%
1
1.00%
Please see the Basics of investing section for an explanation of active/passive investments.
The charges and rebates are not guaranteed. They are regularly reviewed and may be changed in the future.
If you need more help to understand this table, please see the Basics of investing section.
26 EY Defined Contribution Plan
% of investments
70:30 Equity 5 Year Fixed Interest Lifestyle
100
90
80
70
60
50
40
30
20
10
0
>6 5 432 1 3
Years to retirement Fund name
Standard Life 70:30 Global
Equity Tracker (Vanguard)
Pension Fund
SL Vanguard UK Investment
Grade Bond Index Pension
Fund
Standard Life Deposit and
Treasury Pension Fund
1
months
0.73%
Effective
total annual
fund charge
0.29%
Active/
Passive
investment1
Passive
0.02%
0.73%
0.29%
Passive
0.01%
0.73%
0.28%
Active
Fund
code
Volatility FMC
rating
Additional Plan
expenses rebate
KKHF
5
1.00%
0.02%
BFAE
2
1.00%
G4
1
1.00%
Please see the Basics of investing section for an explanation of active/passive investments.
The charges and rebates are not guaranteed. They are regularly reviewed and may be changed in the future.
If you need more help to understand this table, please see the Basics of investing section.
EY Defined Contribution Plan 27
% of investments
60:40 Equity 5 Year Gilt Index Lifestyle
100
90
80
70
60
50
40
30
20
10
0
>6 543213
Years to retirement Fund name
Fund
code
AACG
Standard Life 60:40 Global
Equity Tracker (Vanguard)
Pension Fund
SL Vanguard UK Inflation
GGGA
Linked Gilt Index Pension Fund
Standard Life Deposit and
G4
Treasury Pension Fund
1
months
0.73%
Effective
total annual
fund charge
0.28%
Active/
Passive
investment1
Passive
0.02%
0.73%
0.29%
Passive
0.01%
0.73%
0.28%
Active
Volatility FMC
rating
Additional Plan
expenses rebate
6
1.00%
0.01%
4
1.00%
1
1.00%
Please see the Basics of investing section for an explanation of active/passive investments.
The charges and rebates are not guaranteed. They are regularly reviewed and may be changed in the future.
If you need more help to understand this table, please see the Basics of investing section.
28 EY Defined Contribution Plan
% of investments
60:40 Equity 5 Year Fixed Interest Lifestyle
100
90
80
70
60
50
40
30
20
10
0
>6 543213
Years to retirement Fund name
Standard Life 60:40 Global
Equity Tracker (Vanguard)
Pension Fund
SL Vanguard UK Investment
Grade Bond Index Pension
Fund
Standard Life Deposit and
Treasury Pension Fund
1
months
0.73%
Effective
total annual
fund charge
0.28%
Active/
Passive
investment1
Passive
0.02%
0.73%
0.29%
Passive
0.01%
0.73%
0.28%
Active
Fund
code
Volatility FMC
rating
Additional Plan
expenses rebate
AACG
6
1.00%
0.01%
BFAE
2
1.00%
G4
1
1.00%
Please see the Basics of investing section for an explanation of active/passive investments.
The charges and rebates are not guaranteed. They are regularly reviewed and may be changed in the future.
If you need more help to understand this table, please see the Basics of investing section.
EY Defined Contribution Plan 29
3. Self select funds
Do you have a good
understanding of investments
and how they perform? This
could be the right choice for you.
You can choose from a range of
funds. The tables later in this
guide give more details about
these. For information about the
funds’ aims and how they invest,
you should read each fund’s
factsheet. Please note:
¬¬You may need to build your
investment portfolio from
a number of funds
¬¬It is up to you to regularly
monitor the performance
of your funds and decide
whether to make any changes
¬¬You may need to adjust
your portfolio regularly
to keep it in line with your
investment profile
30 EY Defined Contribution Plan
It is very important that you
pick an asset mix and build
a portfolio that aims to meet
your individual needs and
your attitude towards risk.
If you are unsure then you may
wish to seek advice from a
financial adviser. There may be
a cost for this. You should think
about investing in a variety
of asset classes and a range
of investments within each
asset class.
Are you approaching
retirement?
If you are nearing retirement
(for example if you are five years
or less away), you may want to
consider starting to invest in
funds aimed at aligning your
pension fund with your plans
for retirement. Some funds
have aims which are aligned to
specific retirement income plans,
such as buying an annuity, while
others may be more suitable
if you intend to take a flexible
income (known as drawdown)
or take all of your pension as
one or more lump sums.
For example if you intend to
buy an annuity when you retire,
you may wish to consider
being invested in a fund such
as the Standard Life Annuity
Purchase (MT) Fund by the time
you retire. And if you plan on
taking a 25% tax-free lump sum,
you could consider moving into
a money market fund.
If you are unsure where to invest,
you may want to seek advice
from a financial adviser.
For information about these funds’
aims and how they invest, you
should read the fund factsheets.
EY Defined Contribution Plan 31
UK Equities
Additional Plan
expenses rebate
Active/
Effective
total annual Passive
fund charge investment1
Fund name
Fund
code
Volatility FMC
rating
Standard Life Active UK
Equity (MT) Pension Fund
KKGE
6
1.00% 0.01%
0.73% 0.28%
Active
Standard Life Passive UK
Equity (MT) Pension Fund
CCFE
5
1.00% 0.02%
0.73% 0.29%
Passive
SL Vanguard FTSE2 UK All Share
Index Pension Fund
BFCK
5
1.00% 0.02%
0.73% 0.29%
Passive
FTSE International Limited (“FTSE”) does not sponsor, endorse, or promote this fund. All copyright in the
index values and constituent list vests in FTSE. Standard Life group has obtained a licence from FTSE to
use such copyright in the creation of this fund. “FTSE®” is a trade mark jointly owned by the London Stock
Exchange Plc and The Financial Times Limited and is used by FTSE under licence.
2
Global Equities
Fund name
Fund
code
Volatility FMC
rating
Additional Plan
expenses rebate
Active/
Effective
total annual Passive
fund charge investment1
Standard Life Active Global
DDBK 6
Equity 50:50 (MT) Pension Fund
1.00% 0.01%
0.73% 0.28%
Active
Standard Life Active Overseas
Equity (MT) Pension Fund
CCKN
6
1.00% 0.02%
0.73% 0.29%
Passive
Standard Life Overseas Tracker
Pension Fund
H5
6
1.00% 0.01%
0.73% 0.28%
Active
Standard Life Passive
Emerging Markets Equity (MT)
Pension Fund
MMNB 7
1.00% 0.22%
0.73% 0.49%
Passive
Standard Life Passive Global
LNGK
Equity 50:50 (MT) Pension Fund
6
1.00% 0.01%
0.73% 0.28%
Passive
Standard Life Passive Overseas NBNI
Equity (MT) Pension Fund
6
1.00% 0.01%
0.73% 0.28%
Passive
Standard Life Shariah Global
Equity (MT) Pension Fund
AAKK 6
1.00% 0.31%
0.73% 0.58%
Passive
SL Vanguard FTSE Developed
World ex UK Equity Index
Pension Fund
KKFK
1.00% 0.02%
0.73% 0.29%
Passive
6
Property (including property securities)
Fund name
Fund
code
Volatility FMC
rating
Additional Plan
expenses rebate
Active/
Effective
total annual Passive
fund charge investment1
Standard Life Property (MT)
Pension Fund
EEPN
3
0.01%
0.28%
32 EY Defined Contribution Plan
1.00%
0.73%
Active
Money Market Instruments (including cash)
Fund name
Fund
code
Volatility FMC
rating
Additional Plan
expenses rebate
Active/
Effective
total annual Passive
fund charge investment1
Standard Life Deposit and
Treasury (MT) Pension Fund
NNJH
1
1.00%
0.01%
0.73%
0.28%
Active
Standard Life Deposit and
Treasury Pension Fund
G4
1
1.00%
0.01%
0.73%
0.28%
Active
Bonds
Volatility FMC
rating
Fund
code
Standard Life Active Corporate
Bond (MT) Pension Fund
NNPB 2
1.00% 0.02%
0.73% 0.29%
Active
Standard Life Active Gilt (MT)
Pension Fund
BEDK
2
1.00% 0.01%
0.73% 0.28%
Active
Standard Life Annuity
Purchase (MT) Pension Fund
JJGB
3
1.00% 0.01%
0.73% 0.28%
Active
Standard Life Passive Corporate BBDE 2
Bond (MT) Pension Fund
1.00% 0.02%
0.73% 0.29%
Passive
Standard Life Passive Gilt (MT)
Pension Fund
EEMC 2
1.00% 0.02%
0.73% 0.29%
Passive
SL Vanguard UK Inflation Linked GGGA 4
Gilt Index Pension Fund
1.00% 0.02%
0.73% 0.29%
Passive
SL Vanguard UK Investment
BFAE
Grade Bond Index Pension Fund
1.00% 0.02%
0.73% 0.29%
Passive
2
Additional Plan
expenses rebate
Active/
Effective
total annual Passive
fund charge investment1
Fund name
Other
Fund name
Fund
code
Volatility FMC
rating
Additional Plan
expenses rebate
Active/
Effective
total annual Passive
fund charge investment1
Standard Life Active
Emerging Markets Equity
(MT) Pension Fund
CCIB
7
1.00%
0.83%
0.73%
1.10%
Active
Standard Life Ethical (MT)
Pension Fund
NNAB
5
1.00%
0.01%
0.73%
0.28%
Active
Standard Life Global Absolute
Return Strategies (MT)
Pension Fund
BBMK
3
1.00%
0.60%
0.73%
0.87%
Active
Please see the Basics of investing section for an explanation of active/passive investments.
1
The charges and rebates are not guaranteed. They are regularly reviewed and may be changed in the future.
If you need more help to understand these tables, please see the Basics of investing section.
EY Defined Contribution Plan 33
Important information
you should read
Before making your investment
choices please make sure you
read the following information,
which includes details of some of
the risks you should be aware of.
¬¬Read your Member’s
Outline Document.
¬¬The return on each fund
depends on the performance
of the assets it invests in and
the charges on the fund.
¬¬The price of units depends on
the value of the fund’s assets
after charges. This can go
down as well as up, and your
investment in the fund may
be worth less than what was
paid in.
¬¬We review volatility ratings
regularly and they can change
over time.
34 EY Defined Contribution Plan
¬¬Some funds invest in
overseas assets. This means
that exchange rates and
the political and economic
situation in other countries
can significantly affect the
value of these funds. The
value can go down as well as
up, and your investment in the
fund may be worth less than
what was paid in.
¬¬The asset mix that each fund
invests in is continuously
reviewed. It may be changed
in line with developments in
the relevant markets. Part
of each fund may be held
in cash and other money
market instruments – see the
Basics of investing section for
more information.
¬¬You’ll probably be one of
many investors in each fund
you choose. Sometimes, in
exceptional circumstances,
we may have to wait before
transferring or switching
your investments. This is to
maintain fairness between
those remaining in and those
leaving the fund. This delay
could be for up to a month.
But for some funds, the delay
could be longer:
It may be for up to six months
if it’s a property based fund
because property and land
can take longer to sell.
If a fund invests in an external
fund, the delay could be
longer if the rules of the fund
allow this.
If we have to delay a transfer
or switch, the fund prices on
the day the transaction takes
place will be used – these
prices could be very different
from the prices on the day
you made the request.
¬¬Some funds invest in
property. The valuation of
property is generally a matter
of a valuer’s opinion rather
than fact.
¬¬You can switch in and out of
various funds to change the
mix of investments.
¬¬Some funds invest in funds
managed by external fund
managers. In these cases,
the description of the fund is
provided by the external fund
manager so Standard Life
can’t guarantee that
it’s accurate.
External fund managers
are in charge of managing
their own funds including
what they invest in. This
means that Standard Life
is not responsible for these
funds’ performance or
continued availability.
The investment performance
of the Standard Life version
of a fund will be different from
what you would see if you
invested in the underlying fund
directly. There can be several
differences, due to charges,
cash management, tax and the
timing of investing.
EY Defined Contribution Plan 35
¬¬Some fund managers may
look to get a better return by
lending some of the assets to
certain financial institutions.
This involves some risk, and
in certain circumstances the
fund could suffer a loss – for
example, if the institution
encountered financial
difficulties and was unable
to return the asset. The
fund manager will use some
controls to manage this risk,
such as obtaining security
from the borrower and
monitoring their credit rating.
External fund managers
may also lend assets and
are responsible for their
own controls.
¬¬Funds can sometimes
use derivatives to improve
portfolio management and
to help meet investment
objectives. A derivative is
a financial instrument – its
value is derived from the
underlying value or movement
in other assets, financial
commodities or instruments,
like equities, bonds, interest
rates, etc.
36 EY Defined Contribution Plan
There is a risk that a
counterparty will fail, or
partially fail, to meet their
contractual obligations under
the arrangement. Where a
counterparty fails, the fund
could suffer a loss. As part
of the management of a fund,
a number of controls can be
used to reduce the impact
of this risk, such as holding
collateral and monitoring
credit ratings.
Depending on how it is used,
a derivative can involve little
financial outlay but result
in large gains or losses.
Standard Life has control
over the use of derivatives
in its funds and external fund
managers are responsible for
their own controls.
¬¬Charges and rebates are not
guaranteed and can be altered
in the future.
¬¬The funds listed here were
correct when this document
was published. We cannot
guarantee that all funds will
be available when you make
an investment.
Step 4
How can I keep track
of my pension?
It’s easy to stay on top of your pension online.
Your company pension website, www.standardlifepensions.com/eydcp,
has information and tools to make the right decisions.
Once you become a member you can also log on to view details
of your company pension online. You can:
¬¬See what your pension is worth at today’s date and what it
may be worth in the future
¬¬Check and change your investments
¬¬View your personal details
¬¬Get more information and download important documents
Keeping track
It’s up to you to regularly review your Plan to make sure you’re
on track for your retirement. Each year we’ll send you a statement
showing how your pension is doing.
This might also be a good time to use
the retirement planning tools online at
www.standardlifepensions.com/eydcp
It might be a good idea to take some financial advice.
An adviser can help you decide where to invest. If you don’t
have a financial adviser, you can find one locally by visiting
www.unbiased.co.uk There may be a cost for this.
EY Defined Contribution Plan 37
Further reading
We recommend you read all of the information we
have given you about the Plan. You might want to
refer to these documents later, so you should keep
them in a safe place.
Laws and tax rules may change in the future. The
information here is based on our understanding in
April 2015. Your personal circumstances also have
an impact on tax treatment.
38 EY Defined Contribution Plan
Pensions    Savings    Investments    Insurance
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www.standardlifepensions.com/eydcp
Products provided by subsidiaries of Standard Life plc or other
specified providers.
Standard Life Assurance Limited is the provider of the Standard Life DC Master Trust.
Standard Life Assurance Limited is registered in Scotland (SC286833) at
Standard Life House, 30 Lothian Road, Edinburgh EH1 2DH. Standard Life Assurance
Limited is authorised by the Prudential Regulation Authority and regulated by the
Financial Conduct Authority and the Prudential Regulation Authority.
www.standardlife.co.uk
Standard Life Master Trust Co Ltd is trustee and scheme administrator of the
Standard Life DC Master Trust. Standard Life Master Trust Co Ltd is registered
in England and Wales (09497864) at c/o Standard Life Workplace Proposition,
14th Floor, 30 St. Mary Axe, London EC3A 8BF.
MT4EY 0515 ©2015 Standard Life, images reproduced under licence