Our Default investment
proposition for auto-enrolment
pension schemes
A guide for employers
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About this guide
This guide explains the default investment options you
can use for Aviva’s Company Pension and Company
Stakeholder Pension schemes. Please be aware that it isn’t
intended to provide personalised advice or give personal
recommendations. If a personal recommendation is what
you’re looking for, please speak to a financial adviser. If you
don’t already have one, you can find an adviser near you at
www.unbiased.co.uk. A financial adviser may charge a fee
for their service.
How to find your way around
Click on the tabs at the bottom of the page to head straight to the section you want.
Or click on a title in the contents list to go to a particular page.
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Contents
Introducing our default investment proposition
4
How it works
5
Ready-made default approaches
6
Introducing our Future Focus range
7
The approaches in detail
9
More information
18
Governance of auto-enrolment defaults
19
Next steps
20
Introduction | Ready-made approaches | More info
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Introducing our default investment
proposition for auto-enrolment
pension schemes
Our range of ready made auto-enrolment default options are
designed to help you meet your auto-enrolment responsibilities.
What our proposition includes:
●
●
A selection of lifestage approaches: You can choose from our ‘Future Focus’
range of ready-made lifestage approaches (ready to use with any auto-enrolment
scheme).
A selection of lifestage outcomes: Our Future Focus range offers ready-made
lifestage approaches that target drawdown, annuity and cash lump sum retirement
outcomes. These options are available to employees in addition to any bespoke
investment options you choose for your scheme.
●Flexibility
over default choice: Any of our Future Focus approaches can be used
as an auto-enrolment default, giving you plenty of flexibility.
●
Governance you can count on: Our fund governance team handles all the ongoing
governance required for auto-enrolment investment approaches, so you don’t have
to. The team reviews all the approaches you’ll find in this guide to ensure they’re
performing in line with their objectives. Aviva has also established an Independent
Governance Committee. Please see page 19 for details.
●
Plus – literature for employees: Once you’ve set up your scheme, we’ll produce
literature to explain the scheme default and any other investment options to
employees. We will also send each member an annual statement explaining, in plain
English, how their pension plan has performed.
There are other options available to you but you’ll need to speak to a financial adviser
for more information. If you don’t have a financial adviser you can visit unbiased.co.uk
to find an adviser in your area.
Designed with auto-enrolment in mind
Why we’re using
lifestaging
Our investment approaches for
auto-enrolment all use lifestaging
because we believe it’s the best
solution to the best practice
guidelines issued by the Department
for Work and Pensions1 (DWP).
Lifestaging aims to help protect the
retirement benefits the member
could get and requires little or no
input from them. We designed it
with the majority of employees
in mind, who typically aren’t
sophisticated investors and don’t
have ready access to financial advice.
What’s more, our lifestage
approaches come with automatic
rebalancing as standard. The fund
splits are moved back to their
original levels at regular intervals –
so employees should rarely (if ever)
be exposed to a higher level
of investment risk than they’re
comfortable with.
We’ve designed our investment proposition based on best practice guidelines issued
by the Department for Work and Pensions1 (DWP). So with an Aviva pension scheme,
you can feel confident you’re offering your employees investment options that are in
tune with the regulator’s recommendations.
1
Guidance for offering a default option for defined contribution automatic enrolment pension schemes,
DWP, May 2011.
Introduction
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Ready-made approaches | More info
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How to create a default
investment solution for
your scheme
Here’s how to create an investment solution for your Aviva pension scheme:
You can choose from our Future Focus investment approaches (page 7–17).
They are:
●
Five ‘ready-made’ lifestage investment approaches.
●
Three different retirement outcomes.
●
Designed by Aviva’s investment experts.
There are other options available to you but you’ll need to speak to a financial adviser for more information. If you don’t
have a financial adviser you can visit unbiased.co.uk to find an adviser in your area.
If you don’t choose a default, we will automatically select Aviva Future Focus 2 Drawdown Lifestage Approach for
your schemes.
You can offer different defaults to different categories of employee. For instance: you could give your office-based staff
a separate default from your sales force. Please note that no matter which option is chosen the value of the employees’
pension pots can go down as well as up and they could get back less than has been paid in.
Please note: scheme members have a range of investment options to choose from and can change their investments at
any time. You can find out about them by visiting aviva.co.uk/pension-essentials/investment-centre/investment-options/
Introduction
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Ready-made approaches | More info
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Ready-made default
investment approaches
Introducing our Future Focus range
7
The approaches in detail
9
Introduction
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Ready-made approaches
More info
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Introducing our Future
Focus range
Our Future Focus range of ready-made lifestage approaches
gives you a way of putting together an investment solution for
your scheme.
A fast-track way to build an investment solution
Our Future Focus range consists of five lifestage investment approaches. This allows you to put together
an investment solution for different member retirement needs.
Our Future Focus range at-a-glance:
Lifestage
approach name
What’s available
Member target retirement outcome
Aviva Future
Focus 1 Drawdown
Lifestage Approach
We can only offer this approach
if you are taking financial advice to
set up your scheme.
Aviva Future
Focus 2 Drawdown
Lifestage Approach
This is Aviva’s standard default
option. If an alternative default isn’t
selected this approach will be used.
Aviva Future
Focus 3 Drawdown
Lifestage Approach We can only offer this approach
if you are taking financial advice to
set up your scheme.
Aviva Future
Focus 2 Annuity
Lifestage Approach
We can only offer this approach
if you are taking financial advice to
set up your scheme.
To use their pension pot to buy an income
for their lifetime (an annuity) when they
reach their chosen retirement age.
Aviva Future
Focus 2 Lump Sum
Lifestage Approach
We can only offer this approach
if you are taking financial advice to
set up your scheme.
To withdraw all their money in their pension
pot as a one-off cash lump sum when they
reach their chosen retirement age.
To take some of their money from their
pension pot as and when they need it, for
example as cash sums or as a flexible income
(known as drawdown) when they reach their
chosen retirement age.
A range of retirement outcomes available for employees to select
This includes our full Future Focus range which is available to all employees to select in addition to any other
investment options you choose for your scheme. Employees can only invest in one approach at a time.
All suitable as auto-enrolment defaults
All our Future Focus approaches are designed for those employees most likely to end up in their scheme’s default.
Which means you can use any of them – right off-the-shelf – as the default option for your auto-enrolment
scheme. However, if you’re thinking of using any options other than the Future Focus 2 Drawdown Lifestage
approach you must seek financial advice.
No governance
What’s more, if you use one of our Future Focus range for your auto-enrolment default, we’ll handle
all the governance required – right from day one. Please see the governance section on page 19 for full details.
All governance is handled by Aviva.
Introduction
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Ready-made approaches
More info
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Specially designed for auto-enrolment
Our Future Focus approaches are designed to be used as an auto-enrolment default option. Every aspect
of each approach has been designed with this in mind – from the funds used right through to how the
investments change as your employees using these approaches near their chosen retirement age.
The early years of the approaches are designed with the intention of providing investment growth.
For the Future Focus 1, 2 and 3 Drawdown and Future Focus 2 Lump Sum Lifestage investment
approaches, the aim is to invest in funds with the potential for growth in the early years, and then
automatically and gradually move the member’s money into lower risk funds in the years before they
are due to take their retirement benefits. For the Future Focus 2 Annuity Lifestage investment approach,
as the member nears their chosen retirement age, their investment is moved into different types of
funds that aim to help protect the level of income for life (known as an annuity) they could get. All of
this happens automatically, meaning employees don’t make any investment decisions along the way.
Low cost
The Department for Work and Pensions (DWP) charge cap statement means default fund charges cannot
exceed 0.75% from April 2015. Good news then, that our Future Focus range is specifically designed
never to breach this cap.
Introduction
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Ready-made approaches
More info
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Our Future Focus range –
the approaches in detail
There are five lifestage investment approaches in our
Future Focus range. Read on for details of how each approach
works, what its objectives are and what funds it uses.
Overview and objectives
Each approach in our Future Focus range is designed to offer a balance of risk and return for employees
being automatically enrolled into a pension scheme.
Aviva’s Future Focus 2 Drawdown Lifestage Approach is Aviva’s standard default option. If an alternative
default isn’t selected by you, Future Focus 2 Drawdown Lifestage Approach will be used.
Approach name
Objectives
Aviva Future Focus 1
Drawdown Lifestage
Approach
This approach aims to minimise large fluctuations in the value of the member’s pension pot, but the
potential for growth may be limited. It is designed to prepare their pension pot for flexible access at
their chosen retirement age:
●
taking some of the money as and when they need it, either as cash sums or as flexible income
(known as drawdown) or
●
leaving their money where it is and making their choices later
Please note: At their chosen retirement age the member will have a number of retirement options,
(even if they remain invested in this lifestage approach), however this lifestage investment approach
has been designed to prepare for the particular retirement options shown above.
This approach is not designed to prepare for:
Aviva Future Focus 2
Drawdown Lifestage
Approach
●
withdrawing all the money in their pension pot
●
buying an income for life (known as an annuity) at the member’s chosen retirement age.
This approach aims to provide growth in the early years, although the value of the member’s pension
pot could fluctuate. It is designed to prepare their pension pot for flexible access at their chosen
retirement age:
●
taking some of the money as and when they need it, either as cash sums or as flexible income
(known as drawdown) or
●
leaving their money where it is and making their choices later
Please note: At their chosen retirement age the member will have a number of retirement options,
(even if they remain invested in this lifestage approach), however this lifestage investment approach has
been designed to prepare for the particular retirement options shown above.
This approach is not designed to prepare for:
●
withdrawing all the money in their pension pot
●
buying an income for life (known as an annuity) at the member’s chosen retirement age.
More overleaf
Introduction
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Approach name
Objectives
Aviva Future Focus 2
Annuity Lifestage
Approach
This approach aims to provide growth in the early years, although the value of the member’s pension
pot could fluctuate. It is designed to prepare their pension pot for:
●
buying an income for life (known as an annuity) at their chosen retirement age.
Please note: At their chosen retirement age the member will have a number of retirement options,
(even if they remain invested in this lifestage approach), however this lifestage investment approach
has been designed to prepare for the particular retirement option shown above.
This approach is not designed to prepare for:
Aviva Future Focus 2
Lump Sum Lifestage
Approach
●
taking some of the money as and when they need it, either as cash sums or as flexible income
(known as drawdown)
●
withdrawing all the money in their pension pot or
●
leaving their money where it is and making their choices later
This approach aims to provide growth in the early years, although the value of the member’s pension
pot could fluctuate. It is designed to prepare their pension pot for:
●
withdrawing all the money in their pension pot at their chosen retirement age.
Please note: At their chosen retirement age the member will have a number of retirement options,
(even if they remain invested in this lifestage approach), however this lifestage investment approach has
been designed to prepare for the particular retirement option shown above.
This approach is not designed to prepare for:
Future Focus 3
Drawdown Lifestage
Approach
●
taking some of the money as and when they need it, either as cash sums or as flexible income
(known as drawdown)
●
buying an income for life (known as an annuity)
●
leaving their money where it is and making their choices later
This approach offers the potential for good returns over the long term, although the value of the
member’s pension pot could fluctuate significantly. It is designed to prepare their pension pot for
flexible access at their chosen retirement age:
●
taking some of the money as and when they need it, either as cash sums or as flexible income
(known as drawdown) or
●
leaving their money where it is and making their choices later
Please note: At their chosen retirement age the member will have a number of retirement options,
(even if they remain invested in this lifestage approach), however this lifestage investment approach
has been designed to prepare for the particular retirement options shown above.
This approach is not designed to prepare for:
Introduction
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●
withdrawing all the money in their pension pot
●
buying an income for life (known as an annuity) at the member’s chosen retirement age.
Ready-made approaches
More info
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How the approaches work – Future Focus 2 & 3 Drawdown
100%
90%
80%
70%
60%
Stage 1
50%
Stage 3
Stage 2
40%
30%
20%
10%
0%
10
years
Aviva Diversified Assets Fund II or III
9
8
7
Aviva Diversified Assets Fund I
6
5
4
3
2
1
At
retirement
Aviva Deposit Fund
Stage 1 is the growth phase, when all the employee’s payments are invested in the Aviva
Diversified Assets Fund II (Future Focus 2) or Diversified Assets Fund III (Future Focus 3). The purpose
of this stage is to maximise the growth of the employee’s pension pot, while keeping the risk profile
consistent.
tage 2 is when consolidation begins. It kicks in when the employee reaches 10 years from their
S
chosen retirement age. During this stage, we gradually (and automatically) move the scheme
member’s money into the lower volatility Aviva Diversified Assets Fund I.
1
2
The purpose of this stage is to move the investments into a lower risk fund as they near their chosen
retirement age.
tage 3 begins three years from the employee’s chosen retirement age. During this stage,
S
we start moving money into the Aviva Deposit Fund, as well as continuing to move it into the
Aviva Diversified Assets Fund I.
3
This stage is designed to help protect the value of the tax free cash lump sum the employee can choose
to take when they take their benefits – along with continuing to move the client’s investments into
lower risk funds.
By the time the employee reaches their chosen retirement age, 25% of their pension pot will be invested
in the Aviva Deposit Fund, and 75% will be invested in the Aviva Diversified Assets Fund I.
The exact fund split at the start of the investment depends on how far the employee is from their chosen
retirement age when they become a scheme member.
Automatic Rebalancing
From the start of stage 2 onwards, the funds are automatically rebalanced back to their original
weightings at set intervals. This will happen every 3 months.
Introduction
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Ready-made approaches
More info
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How the approaches work – Future Focus 2 Annuity
100%
90%
80%
70%
60%
Stage 1
50%
Stage 3
Stage 2
40%
30%
20%
10%
0%
10
years
Aviva Diversified Assets Fund II
9
8
Aviva BlackRock Aquila
Over 15 Years Corporate
Bond Index Tracker
7
6
5
4
3
2
1
At
retirement
Aviva Deposit Fund
Stage 1 is the growth phase, when all the employee’s payments are invested in the Aviva
Diversified Assets Fund II. The purpose of this stage is to maximise the growth of the employee’s
pension pot, while keeping the risk profile consistent.
tage 2 is when consolidation begins. It kicks in when the employee reaches 10 years from their
S
chosen retirement age. During this stage, we gradually (and automatically) move the scheme
member’s money into the Aviva BlackRock Aquila Over 15 Years Corporate Bond Index Tracker.
1
2
The purpose of this stage is to help protect the level of income for life (known as an annuity) the
employee’s pension pot could buy at their chosen retirement age.
tage 3 begins three years from the employee’s retirement age. During this stage, we start moving
S
money into the Aviva Deposit, as well as continuing to move it into the Aviva BlackRock Aquila
Over 15 Years Corporate Bond Index Tracker.
3
This stage is designed to help protect the value of the tax free cash lump sum the employee can choose
to take when they take their benefits – along with continuing to help protect the level of income for life
(known as an annuity) the rest of their pension pot could buy.
By the time the employee reaches their chosen retirement age, 25% of their pension pot will be invested
in the Aviva Deposit, and 75% will be invested in the Aviva BlackRock Aquila Over 15 Years Corporate
Bond Index Tracker.
The exact fund split at the start of the investment depends on how far the employee is from their chosen
retirement age when they become a scheme member.
Automatic Rebalancing
From the start of stage 2 onwards, the funds are automatically rebalanced back to their original
weightings at set intervals. This will happen every 3 months.
Introduction
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How the approaches work – Future Focus 2 Lump Sum
100%
90%
80%
70%
60%
Stage 1
50%
Stage 3
Stage 2
40%
30%
20%
10%
0%
10
years
Aviva Diversified Assets Fund II
9
8
7
Aviva Diversified Assets Fund I
6
5
4
3
2
1
At
retirement
Aviva Deposit Fund
Stage 1 is the growth phase, when all the employee’s payments are invested in the Aviva
Diversified Assets Fund II. The purpose of this stage is to maximise the growth of the employee’s
pension pot, while keeping the risk profile consistent.
tage 2 is when consolidation begins. It kicks in when the employee reaches 10 years from their
S
chosen retirement age. During this stage, we gradually (and automatically) move the scheme
member’s money into the Aviva Diversified Assets Fund I.
1
2
The purpose of this stage is to move the investments into a lower risk fund as they near their chosen
retirement age.
tage 3 begins four years from the employee’s chosen retirement age. During this stage, we start
S
moving money into the Aviva Deposit fund.
3
This stage is designed to help protect the value of the pension pot, assuming the employee is considering
taking it all as a lump sum.
By the time the employee reaches their chosen retirement age, 100% of their pension pot will be
invested in the Aviva Deposit fund. There is a greater possibility that the investment returns on the
Aviva Deposit fund may not cover the scheme charges.
The exact fund split at the start of the investment depends on how far the employee is from their
chosen retirement age when they become a scheme member.
Automatic Rebalancing
From the start of stage 2 onwards, the funds are automatically rebalanced back to their original
weightings at set intervals. This will happen every 3 months.
Introduction
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Ready-made approaches
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How the approaches work – Future Focus 1 Drawdown
100%
90%
80%
70%
60%
Stage 1
50%
Stage 2
40%
30%
20%
10%
0%
10
years
9
8
7
Aviva Diversified Assets Fund I
6
5
4
3
2
1
At
retirement
Aviva Deposit Fund
Stage 1 is the growth phase, when all the employee’s payments are invested in the Aviva
Diversified Assets Fund I. The purpose of this stage is to maximise the growth of the employee’s
pension pot, while keeping the risk profile consistent.
tage 2 is when consolidation occurs. Stage 2 begins 3 years from the employee’s chosen
S
retirement age. During this stage, we start moving money into the Aviva Deposit fund, as well as
continuing to invest in the Aviva Diversified Assets Fund I.
1
2
This stage is designed to help protect the value of the tax free cash lump sum the employee can choose
to take when they take their benefits – along with continuing to invest in a lower risk fund as they near
their chosen retirement age.
By the time the employee reaches their chosen retirement age, 25% of their pension pot will be invested
in the Aviva Deposit Fund, and 75% will be invested in the Aviva Diversified Assets Fund I.
The exact fund split at the start of the investment depends on how far the employee is from their chosen
retirement age when they become a scheme member.
Automatic Rebalancing
From the start of stage 2 onwards, the funds are automatically rebalanced back to their original
weightings at set intervals. This will happen every 3 months.
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The funds used
For the growth stage (stage 1)
Aviva Diversified Assets Fund I (used for Future Focus 1)
Aviva Life risk rating: 2 (low to medium)
Target volatility: 7% (+/− 2%)*
Annual management charge: 0.0%
Fund objective: To provide long-term growth through exposure to a range of asset classes, that can include, but is
not limited to equities, fixed interest, cash, property and commodities. The fund may also use derivatives. This fund
is part of a range of funds that have been designed to offer different risk options. This fund is designed to provide a
lower risk option, with the expectation of less potential for growth, than Diversified Assets Fund II.
Asset allocation: Please see the fund factsheet for the most up to date asset allocation and more information on the fund.
Aviva Diversified Assets Fund II (used for Future Focus 2)
Aviva Life risk rating: 3 (medium)
Target volatility: 10% (+/− 2%)*
Annual management charge: 0.0%
Fund objective: To provide long-term growth through exposure to a range of asset classes, that can include,
but is not limited to equities, fixed interest, cash, property and commodities. The fund may also use derivatives.
This fund is part of a range of funds that have been designed to offer different risk options.
Asset allocation: Please see the fund factsheet for the most up to date asset allocation and more information on the fund.
Aviva Diversified Assets Fund III (used for Future Focus 3)
Aviva Life risk rating: 3 (medium)
Target volatility: 13% (+/− 2%)*
Annual management charge: 0.0%
Fund objective: To provide long-term growth through exposure to a range of asset classes, that can include, but is
not limited to equities, fixed interest, cash, property and commodities. The fund may also use derivatives. This fund
is part of a range of funds that have been designed to offer different risk options. This fund is designed to provide
a higher risk option, with the expectation of greater potential for growth, than Diversified Assets Fund II.
Asset allocation: Please see the fund factsheet for the most up to date asset allocation and more information on the fund.
Additional information
Our Diversified Assets Fund range is managed by Gavin Counsell and Nick Samouilhan of Aviva Investors. Managers of this fund
range since December 2013 and September 2014 respectively.
*As a reference point, a reasonable long-term volatility assumption for developed global equities would be 16%. At the other end
of the scale, a reasonable long-term volatility assumption for cash would be 0.5% or less.
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For the de risking/consolidation stages (stages 2 and 3)
Aviva Diversified Assets Fund I
Aviva Life risk rating: 2 (low to medium)
Target volatility: 7% (+/− 2%)*
Annual management charge: 0.0%
Fund objective: The objective of the fund is to provide long term growth through exposure to a range of asset classes, that
can include, but is not limited to equities, fixed interest, cash, property and commodities. The fund may also use derivatives. This
fund is part of a range of funds that have been designed to offer different risk options. This fund is designed to provide a lower
risk option, with the expectation of less potential for growth, than Diversified Assets Fund II.
Fund manager: Gavin Counsell and Nick Samouilhan: Managers of this fund since December 2013 and September 2014
respectively.
Asset allocation: Please see the fund factsheet for the most up to date asset allocation and more information on the fund.
Aviva BlackRock Aquila Over 15 Years Corporate Bond Index Tracker Fund
Aviva Life risk rating: 3 (medium)
Annual management charge: 0.0%
Benchmark: iBoxx £ Non-Gilts Over 15 Years Index
Fund objective: This fund invests in investment grade corporate bonds denominated in sterling. The fund aims to achieve a
return consistent with the iBoxx £ Non-Gilts Over 15 Years Index. This index consists of bonds with a maturity period of 15 years
or longer.
Fund manager: Team managed by BlackRock.
Asset allocation: Please see the fund factsheet for the most up to date asset allocation and more information on the fund.
Aviva Deposit Fund
Aviva Life risk rating: 1 (low)
Annual management charge: 0.0%
Benchmark: LIBID GBP 7 Days
Fund objective: The fund aims to protect capital by investing typically in deposit investments and similar assets with
governments, first class banks and major companies. Although the fund aims to provide a lower risk return, the value can fall.
Fund manager: Richard Hallet, Aviva Investors. Richard joined the firm in 1998, and was appointed Cash Fund Manager
following the merger of Commercial Union and General Accident.
Asset allocation: Please see the fund factsheet for the most up to date asset allocation and more information on the fund.
*As a reference point, a reasonable long-term volatility assumption for developed global equities would be 16%. At the other end
of the scale, a reasonable long-term volatility assumption for cash would be 0.5% or less.
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Aviva’s risk and return ratings defined
We give each of our funds a risk rating, ranging from 1 (low) to 5 (high).
Risk is the possibility of losing money and return is how much it could grow. Risk and return are linked. This
means funds with a rating of 1 have a low risk of losing money, but it might not grow very much. Funds with
a rating of 5 have a higher risk of losing money, but the potential for it to grow over the long term is higher
too. The funds used in these approaches are all between risk rating 1-3.
Risk Rating
Fund type
1 – Low
Funds with this rating usually aim to provide returns similar to those of deposit and
savings accounts, although there’s still a risk the value of the investment could fall.
2 – Low to Medium
Expected to provide better long-term returns than savings accounts. Typically
invest in high quality corporate bonds or provide a form of guarantee or capital
protection, although there is still a risk the value of the investment could fall.
3 – Medium
Typically don’t offer guarantees, but have the potential for better long-term returns
than lower risk funds, although there’s a risk the value of the investment could fall.
Generally invest in a diversified mix of assets or in fixed income bonds issued by
higher risk companies.
4 – Medium to
High
Funds that typically invest in shares of companies in the UK or other major stock
markets. Fund prices may fluctuate significantly but offer the potential for good
returns over the long term.
5 – High
Funds that invest in the higher risk sectors (typically emerging markets or specific
themes), offering the greatest potential for long-term returns but the highest prices
fluctuations and risk to the scheme member’s money.
Get the latest fund information
For the latest performance data, fund factsheets and other information about each of these funds, visit the Fund
Centre at aviva.co.uk/pension-essentials/fund-centre/
Governance and review – for auto-enrolment defaults
If you use one of our Future Focus lifestage approaches as a default option for your auto-enrolment scheme,
we’ll take care of the governance required. So you don’t have to. Please see page 19 for more details.
Introduction
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More information
Governance of auto-enrolment defaults
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Governance of
auto-enrolment defaults
The Department for Work and Pensions (DWP) has issued
guidance2 explaining how auto-enrolment default options
ought to be governed. When you choose an Aviva company
pension scheme, we handle these tasks.
In fact, if you use one of our Future Focus range as your default, we handle 100% of the governance
recommended by the DWP. Aviva’s Future Focus 2 Drawdown Lifestage Approach is Aviva’s standard default option.
If an alternative default isn’t selected by you, our Future Focus 2 Drawdown Lifestage Approach will be used.
Who’s responsible for what?
Who handles it?
Governance task
Aviva
Ensure the approach is suitable for auto-enrolled employees and meets
regulatory standards.
4
Review the approach at least every three years* to make sure it still meets
regulatory standards.
4
Review the performance of underlying funds to check whether they’re
performing in line with their objectives.
4
Replace any funds that are not performing as they should with alternatives.
4
Communicate information about the default option to scheme members.
4
You
*The DWP recommends reviewing the default option at least once every three years. However, we review
all our Future Focus approaches once every two years.
Independent Governance Committee
Aviva has established an Independent Governance Committee which helps govern both Aviva and bespoke
default investment strategies. For more information on the Independent Governance Committee and the
work that they do please visit aviva.co.uk/pension-essentials/your-pension-scheme/igc
If changes are needed
If we find that an investment approach or fund isn’t performing as it should, we’ll make changes. We can
replace an underlying fund with an alternative. We can change the name of an approach. And we can alter
the volatility target of a fund.
We’ll notify you and scheme members if we make any changes to a default approach used by your scheme.
We will also update scheme literature.
2
Guidance for offering a default option for defined contribution automatic enrolment pension schemes, DWP, May 2011.
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Go to our website today
We hope you’ve found this guide useful.
If you are interested in setting up an investment solution then visit our
auto-enrolment site which tells you how you can auto-enrol with Aviva
aviva.co.uk/auto-enrolment/
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Aviva Life Services UK Limited. Registered in England No. 2403746. 2 Rougier Street, York, YO90 1UU.
Authorised and regulated by the Financial Conduct Authority. Firm Reference Number 145452.
aviva.co.uk
SP03333 11/2015 © Aviva plc
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