When investments are bought and sold, there are usually transaction costs. Any transaction costs will depend on the fund(s) and any trading activity on that day.
The AMC and total transaction costs for the year to 30 June 2020 for the funds available for selection are outlined below:
White label fund name |
Underlying fund name |
Total ongoing charges (p.a. %) |
Transaction costs (%) |
Lifestyle funds (also available as Freestyle choices) |
Diversified Growth Fund |
Schroders Diversified Growth Fund |
0.41% |
0.38% |
Passive Global (30:70) Equity Fund |
BlackRock 30:70 Global Equity Currency Hedged Fund |
0.10% |
0.07% |
Retirement Annuity Fund |
BlackRock Over 15 Years UK Gilt Index Fund |
0.11% |
-0.04% |
Passive Corporate Bond Fund |
BlackRock Over 15 Years Corporate Bond Index Fund |
0.11% |
0.15% |
Cash Fund |
BlackRock Cash Fund |
0.03% |
0.01% |
Freestyle funds |
Passive Index Linked Fund |
BlackRock Over 5 year UK Index Linked Gilts Fund |
0.09% |
0.02% |
Passive Global (50:50) Equity Fund |
BlackRock (50:50) Global Equity Fund |
0.10% |
0.01% |
Passive UK Equity Fund |
BlackRock UK Equity Index Fund |
0.11% |
0.01% |
Property Fund |
M&G UK Equity Property Fund |
1.19% |
-0.01% |
Active UK Equity Fund |
M&G UK Equity Recovery Fund |
0.67% |
- |
Active Global Equity Fund |
MFS Global Equity Fund |
0.70% |
0.12% |
Global Climate Change |
Schroders Climate Change Fund |
0.82% |
0.33% |
Active Global Equity Fund |
Veritas Global Focus Fund |
0.79% |
0.82% |
During the Plan year, the Trustees reviewed the suitability of the investment choices available through the Sky Pension Plan. As a result, they decided to close the Alliance Bernstein Global Equity Fund and move all member investments in this fund to the new Veritas Global Focus Fund on 29 November 2017. The decision to make this change was following advice from the Plan’s investment advisors.
Illustration of charges
As required by legislation, we have produced a “£ and pence” illustration of the effect of the costs and charges on the value of the five funds that are used within the default and alternative lifestyle strategies if contributions are paid over a number of years.
The illustration of charges
Example Member |
Age |
Schroders Diversified Growth Fund
|
BlackRock 30:70 Global Equity Currency Hedged Fund
|
BlackRock Cash Fund
|
Before charges |
After charges |
Before charges |
After charges |
Before charges |
After charges |
Youngest Member |
19 |
£1,000 |
£1,000 |
£1,000 |
£1,000 |
£1,000 |
£1,000 |
24 |
£9,952 |
£9,727 |
£10,220 |
£10,184 |
£9,067 |
£9,057 |
29 |
£19,813 |
£18,951 |
£20,871 |
£20,727 |
£16,561 |
£16,527 |
34 |
£30,674 |
£28,699 |
£33,174 |
£32,830 |
£23,522
|
£23,452
|
39 |
£42,636 |
£39,001
|
£47,387 |
£46,722
|
£29,988
|
£29,873
|
44 |
£55,812 |
£49,889
|
£63,805 |
£62,670
|
£35,995
|
£35,825
|
49 |
£70,325 |
£61,396 |
£82,770 |
£80,977 |
£41,575
|
£41,344
|
54 |
£86,309 |
£73,558 |
£104,678 |
£101,991
|
£46,759
|
£46,460
|
59 |
£103,916 |
£86,411
|
£129,985
|
£126,115
|
£51,574
|
£51,203
|
64 |
£123,308
|
£99,995
|
£159,218 |
£153,806
|
£56,047
|
£55,601
|
65 |
£127,417
|
£102,803
|
£165,588 |
£159,818
|
£56,903
|
£56,441
|
Typical Member |
37 |
£9,000 |
£9,000 |
£9,000 |
£9,000
|
£9,000
|
£9,000 |
42 |
£24,354
|
£23,658
|
£25,187 |
£25,075
|
£21,638
|
£21,609
|
47 |
£41,265 |
£39,150
|
£43,885 |
£43,528
|
£33,378 |
£33,298
|
52 |
£59,892 |
£55,523 |
£65,485 |
£64,710
|
£44,284
|
£44,136
|
57 |
£80,409
|
£72,826 |
£90,436
|
£89,026
|
£54,415
|
£54,183 |
62 |
£103,007
|
£91,114 |
£119,258 |
£116,938
|
£63,826
|
£63,498
|
65 |
£117,651
|
£102,582 |
£138,656 |
£135,630
|
£69,148
|
£68,758
|
Notes:
- Values shown are estimates and are not guaranteed.
- Projected pension pot values are shown in today's terms, and do not need to be reduced further for the effect of future inflation.
- Inflation is assumed to be 2.5% each year.
- Future contributions are assumed to be paid from assumed age to 65 and increase in line with assumed earnings inflation of 2.5% each year.
- Total contribution rates and pensionable salaries are assumed to be 9% and £31,000 respectively for the ‘typical’ member and 9% and £19,000 respectively for the ‘youngest’ member.
- The starting pot sizes within the Plan are assumed to be £9,000 for the ‘typical’ member, and £1,000 for the ‘youngest’ member.
- Starting ages within the Plan are assumed to be 37 for the ‘typical’ member, and 19 for the ‘youngest’ member.
-
The projected growth rate for each fund (before total charges and transaction costs are deducted) are as follows.
Fund |
Projected growth rate |
Schroders Diversified Growth Fund |
1.95% above inflation |
BlackRock 30:70 Global Equity Currency Hedged Fund |
2.93% above inflation |
BlackRock Cash Fund |
1.49% below inflation |