RETIREMENT ACCOUNT
PREMIER GOVERNED INVESTMENT STRATEGIES
SCOTTISH WIDOWS PREMIER PENSION FUND RANGE (PREMIER RANGE) BUILDS ON
OUR WELL-ESTABLISHED ORIGINAL RANGE OF GOVERNED INVESTMENT STRATEGIES
AND PENSION PORTFOLIO FUNDS – AIMING TO OFFER BETTER POTENTIAL RETURNS
FOR BROADLY THE SAME LEVELS OF VOLATILITY.
TARGETED LIFESTYLE
SWITCHING
Annuity, Encashment,
Flexible Access
RISK PROFILING
QUESTIONNAIRE
QUARTERLY
RE-BALANCING
0.4% TAFC
STRATEGIC
AND MEDIUM
TERM ASSET
ALLOCATION
ACROSS MORE
ASSET CLASSES
FLEXIBILITY
TO CHANGE
ONGOING REVIEWS
AND GOVERNANCE
This information is for UK financial adviser use only and should not be distributed to or relied upon by any other person.
Full terms and conditions are available on request from Scottish Widows. Charges, terms and limits may change.
WHAT’S DIFFERENT ABOUT THE PREMIER GIS LIFESTYLING OPTIONS?
The key difference between our original GIS and Premier GIS options in terms of the investment mix is that, in addition to investing in traditional
equities and bonds, the Premier GIS options include specialised investment strategies, more asset classes and a degree of active management.
Other than this, our Premier GIS options have the same structure as our original GIS propositions:
• Three risk categories (Cautious, Balanced, Adventurous)
and three retirement outcomes (Targeting Annuity, Targeting
Encashment, Targeting Flexible Access).
• A glidepath design that gradually ‘de-risks’ from 15 years to the
customer’s selected retirement date.
• A
blend of underlying funds to achieve the selected asset mixes
at different stages of lifestyling.
We’ve launched Premier versions of all our Scottish Widows Pension
Portfolio Funds, including those we use for Premier GIS (Premier
Pension Portfolios 1 to 5).
KEY BENEFITS
POTENTIALLY BETTER NET RETURNS
COMPETITIVE PRICING
We carried out extensive modelling when we designed
Premier GIS and the underlying funds using significant
input from Moody’s Analytics. Using certain assumptions*,
the modelling projected annual returns that could be
0.75% higher (net of fees) than the equivalent portfolios
within GIS over rolling three year time periods. Please note
this isn’t guaranteed.
The Scottish Widows Premier GIS are priced at 0.4%
Total Annual Fund Charge per year (an additional
0.3% Total Annual Fund Charge per year compared
to the original GIS options). This allows us to access
a potentially better-performing blend of assets and
advanced strategies which incur higher costs (including
fund expenses). We believe this represents very good
value for money.
T ARGETING SIMILAR LEVELS OF
VOLATILITY
The Premier Pension Portfolio Funds are constructed so
*The figure of 0.75% a year over rolling three year time periods was
arrived at by running a large number of different scenarios that could
affect the funds. These scenarios included the impact of varying
economic and market conditions, and the probability of how this
would affect the assets and strategies of the funds. We also allowed
for the difference in fund charges between the Premier Pension
Portfolio Funds and the Pension Portfolio Funds.
that they target broadly the same level of volatility as
those funds within the original GIS.
Because the Premier range uses a greater number of
strategies than the passive equivalents, this allows for
greater diversification. Different asset classes have the
potential to help generate returns in a wide variety of
market conditions.
As this is based on probabilities not certainties, relative performance
between the Premier Pension Portfolio Funds and the Pension Portfolio
Funds may be lower or higher than 0.75% a year over rolling three year
time periods.
The Premier range uses some relatively lower risk
strategies, such as Low Volatility Equities, which are not
available within our original range.
The broader combination of asset classes used led to
modelling results which indicate a potentially improved
‘efficient frontier’, in terms of the potential return derived
for broadly the same level of volatility.
Please note that the value of an investment is not guaranteed and
can go up and down depending on investment performance (and
currency exchange rates where a fund invests overseas), and your
client may get back less than they invested.
FIND OUT MORE
ROBUST DESIGN AND GOVERNANCE
The Scottish Widows Asset Allocation Team assessed the
suitable strategies available, and worked closely with
quantitative modelling specialists Moody’s Analytics to
help us to refine the choice and to decide the strategic
asset allocation within each Premier Pension Portfolio Fund.
We carried out comprehensive testing of the portfolios
under different market conditions to challenge and stresstest the proposals, with input from Moody’s Analytics.
There is a stringent and thorough governance framework in
place for these funds, to monitor their ongoing performance
and suitability, and ensure key decisions and reviews are
communicated appropriately.
For more information on the Premier Governed Investment
Strategies for Retirement Account,
log on to: www.scottishwidows.co.uk/ra
Premier Lifestyling Options Adviser Guide (55117)
Premier Lifestyling Options Customer Guide (55126)
Governed Investment Strategy Adviser Guide (49970)
Governed Investment Strategy Client Guide (51004)
Scottish Widows Limited. Registered in England and Wales No. 3196171. Registered office in the United Kingdom at 25 Gresham Street, London EC2V 7HN.
Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Financial Services Register number 181655.
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