<SELECT PREFERRED WORDING> This will be undertaken automatically by the recommended investment strategy provider(s) This will be undertaken by us at the annual review date for the scheme There may be occasions when an individual fund or funds that populate a member’s portfolio have a higher risk rating than the members stated attitude to risk. If this is the case, then the overall risk rating applied to all of the combined funds being recommended is still designed to meet the members stated risk profile. I would wish to stress that higher charges can have an effect on the scheme investment performance. In essence, where the investment strategy of the new group scheme has higher charges than the previous scheme it will need to perform better in order to cover any increased charges. <USE FOR NEST IF RECOMMENDING RETIREMENT YEAR FUNDS> I have recommended that the member’s monies be invested within the default investment strategy represented by a range of circa 45 ‘life-styling’ funds known as the Nest Retirement Date Funds as follows: Fund Name ‘Life-styling Stage’ No. of members NEST 2015 Retirement Fund Consolidation 2 NEST 2025 Retirement Fund Growth 5 NEST 2030 Retirement Fund Growth 7 NEST 2040 Retirement Fund Growth 10 NEST 2050 Retirement Fund Growth 12 NEST 2055 Retirement Fund Foundation 7 <THE TABLE WILL TYPICALLY REPRESENT THE MEMBERS AGES AND STATE RETIREMENT DATES SO SHOULD BE CUSTOMISED TO SUIT> I have recommended the above for the following reasons: Members can simply be enrolled into the fund that targets their year of expected retirement which unless specified otherwise will be their state retirement date Each fund has a consistent objective which is to target investment returns in excess of CPI inflation after all charges over the longer term The target is a realistic one of CPI + 3 per cent The aim of each fund is to deliver this objective by saving throughout three phases or periods known as Foundation, Growth and Consolidation As members get older these funds will transition between the phases with lifetime savers spending most time within the ‘Growth’ phase with consolidation expected to commence around on a phased basis 10 years before the members retirement Each fund will have a set of ‘building block’ funds and an asset allocation which always remains appropriate to its target date Funds can be blended between return seeking and income seeking objectives to manage the on-going risk profile Funds will be blended between active and passive management strategies
<SELECT PREFERRED WORDING> This will be undertaken automatically by the recommended investment strategy provider(s) This will be undertaken by us at the annual review date for the scheme There may be occasions when an individual fund or funds that populate a member’s portfolio have a higher risk rating than the members stated attitude to risk. If this is the case, then the overall risk rating applied to all of the combined funds being recommended is still designed to meet the members stated risk profile. I would wish to stress that higher charges can have an effect on the scheme investment performance. In essence, where the investment strategy of the new group scheme has higher charges than the previous scheme it will need to perform better in order to cover any increased charges. <USE FOR NEST IF RECOMMENDING RETIREMENT YEAR FUNDS> I have recommended that the member’s monies be invested within the default investment strategy represented by a range of circa 45 ‘life-styling’ funds known as the Nest Retirement Date Funds as follows: Fund Name ‘Life-styling Stage’ No. of members NEST 2015 Retirement Fund Consolidation 2 NEST 2025 Retirement Fund Growth 5 NEST 2030 Retirement Fund Growth 7 NEST 2040 Retirement Fund Growth 10 NEST 2050 Retirement Fund Growth 12 NEST 2055 Retirement Fund Foundation 7 <THE TABLE WILL TYPICALLY REPRESENT THE MEMBERS AGES AND STATE RETIREMENT DATES SO SHOULD BE CUSTOMISED TO SUIT> I have recommended the above for the following reasons: Members can simply be enrolled into the fund that targets their year of expected retirement which unless specified otherwise will be their state retirement date Each fund has a consistent objective which is to target investment returns in excess of CPI inflation after all charges over the longer term The target is a realistic one of CPI + 3 per cent The aim of each fund is to deliver this objective by saving throughout three phases or periods known as Foundation, Growth and Consolidation As members get older these funds will transition between the phases with lifetime savers spending most time within the ‘Growth’ phase with consolidation expected to commence around on a phased basis 10 years before the members retirement Each fund will have a set of ‘building block’ funds and an asset allocation which always remains appropriate to its target date Funds can be blended between return seeking and income seeking objectives to manage the on-going risk profile Funds will be blended between active and passive management strategies
GPP201415_26032014185339.docx