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Upgrade to the Dentsu Aegis Network
Group Personal Pension Scheme
Introducing Aegon’s
Workplace SIPP platform
Presented by
Patterson-Mills in conjunction with Aegon
19 October 2018
Presenters
Frank Meaden, Edward Mills, Chris Rathbone
❑Aegon Workplace ARC SIPP – reducing your costs now and for the future
❑Your existing funds – ongoing investment and mechanics of switch to the new scheme
❑Enhancing returns – using Patterson-Mills’ actively managed pension portfolios
❑At retirement flexibility - all from one place
❑Your ARC a/c – adding ISAs and GIAs and Patterson-Mills can also advise
❑Online tools – using Aegon’s Retiready platform
❑Your questions answered
Agenda
3
My name is Frank Meaden and I’m an employee of Aegon.
Dentsu Aegis Network, in partnership with Patterson Mills, their advisers and
Aegon, your pension provider, will soon move your workplace retirement
savings scheme to Aegon's retirement savings platform - Aegon Retirement
Choices (ARC). I’m here to let you know about that change and to answer your
questions about it.
This is not intended to be financial advice, if you’re unsure whether this is right
for you or need advice, please speak to the Advisors at Patterson-Mills who are
paid by Dentsu Aegis Network to advise you.
4
Aegon Retirement Choices (ARC) puts you in control of your
financial futures. Our award-winning platform provides you with
the flexibility to manage wealth accumulation, workplace
savings and retirement income through one single online
solution.
The range of products and investments can adapt with your
changing financial needs, as you progress through your working
life into retirement. And, by bringing all your savings together,
you could benefit from lower charges and control of your whole
portfolio in one place.
Aegon Retirement Choices (ARC)
Aegon Retirement Choices (ARC)Our investment platform
ARC lets you buy, sell and hold most of your investments online, all in one place.
5
The flexibility of a SIPP allows you to spread the risk, especially if some investments perform badly. However, these may have
higher costs than a standard pension and active management is essential to maximise the benefits of the wider investment
choice on offer. For these reasons, they will not be suitable for everybody and generally, only those who are fairly experienced
at actively managing their investment, or those taking investment advice, should consider this type of investment. The value
of a SIPP can fall as well as rise. You may get back less than amount invested.
A short comparison
New Vs oldNow you get a whole lot more
Vs
Personal Pension
Paper comms and signed forms
Change plan to access income
Scheme adviser
Self-invested Personal Pension (SIPP)
Digital
One plan - save and income
Scheme and personal adviser
ISA
Other savings
6
Current price New price
Investment charge for default fund n/a 0.05%
0.25% 0.12%
Total annual charge 0.25%
Charges
So the maximum annual service charge you would be subject to is £300 if you have £250,000 or more invested with
us. This tiered pricing option is attractive for pension consolidation and other assets such as an ISA.
Pricing reviewTowards increased transparency
Service charge
• For fund value up to £250,000 – 0.12%
• For fund value over £250,000 – 0%
You may incur other charges which will vary depending on the investment solution you adopt.
These charges may vary in future
Policy fee £2.05 £2.05
0.17%
7
Your future payroll contributionsYour investment strategy
For advice as to whether a fund is suitable for you, please speak to your financial adviser.
• Your contribution will be paid into the scheme
default fund.
• If you’ve selected your own funds, we will, if
possible, replicate that choice.
• You can select new funds as soon as you have
access.
All payroll pension contributions will be paid into the new plan from November 2018 pay
What next?
8
‘No worse off’ test
No offer to transfer
We can’t evidence it’s in
your best interests.
You can transfer yourself if
you wish.
We’ll move your
fund for youWe expect to be able to do
this for most employees.
You can opt out.
Existing moniesYour GPP fund with Aegon
It’s marginal
We’ll move your money for
you, but will required a
signature from you.
What next?
9
TimelineWhat will happen and when
Presentations
delivered –
18th October
Retiready
activation
email – 3rd
October
Transfer
direct offer
closes – 31st
October
What next?
First
contributions
– November
payroll
❑Target age-based and risk-based asset / funds mix➢ standard company pension objective - aka “lifestyling”
➢ aiming for cash / bonds at selected age (e.g. 65)
➢PM advice assesses ideal asset mix choices, revised annually
❑Limited fund range in GPP product➢ choosing appropriate actively managed funds portfolio very difficult
➢most appropriate alternative active funds often not available
➢ passive funds (Blackrock) represent most suitable option within constraints
❑Passive funds used / recommended:➢ avoids “stock-picking” - the buy / sell timing dilemma
➢minimises management costs
➢ assures specific asset-class / market driven returns
Current investment portfolio design - GPP
*Brinson, Hood and Beebower 1986 and subsequent papers by Ibbotson and Kaplan in 2000, updated by Xiong, Ibbotson, Idzorek & Chen 2010 for CFA Institute of North America
Fundamental Analysis(Research & Review)
Asset Allocation
Equities / Bonds Property / Cash
PortfolioSelection
Investment Return
Key factors affectinginvestment returns*
Economic / Political / Sentiment
Causing at least70%
of market movements
Cost Type% pa
PM Passive
% pa
PM Active
% pa
Retail Active
Scheme (ARC) 0.12 0.12 0.30*
Portfolio of funds** 0.10 0.85 0.85
Adviser portfolio fee 0.00 0.30 0.65
Total cost per annum 0.22 1.27 1.85
Cost Type% pa
PM Passive
% pa
PM Active
% pa
Retail Active
Scheme (ARC) 0.00 0.00 0.30*
Portfolio of funds** 0.10 0.85 0.85
Adviser portfolio fee 0.00 0.30 0.65
Total cost per annum 0.10 1.15 1.85
PM Active Portfolio cost comparisonOn all funds on ARC platform up to £250,000
On all funds on ARC platform above £250,000
PM Active Portfolios
PM Passive Portfolios
* Competitive retail scheme platform
** Portfolio costs vary, figure shown is approximate median for our Active Portfolios, a discretionary manager would increase costs further to a total of 2.25% +
Workplace ARC SIPP - investment flexibility
Distinctive investment portfolio design within your workplace pension scheme
❑ Open architecture SIPP:
✓ complete universe of regulated investment funds (4,500+) - rare for a specific fund
not to be available
✓ enables low-cost access to Patterson-Mills’ actively managed portfolios
✓ active portfolio updating is quarterly and continues if you leave, keeping your costs low
and performance (hopefully!) enhanced
Aegon Workplace ARC SIPP
The value of units can fall as well as rise and past performance is not an indication of future returns.
Total Return Chart - ATR 4 - Moderately Adventurous (15yrs+ to TRA)
72 months to 30 September 2018 (longest period available)
Total Return Chart - Passive v Active
ATR 4 - Moderately Adventurous (15yrs+ to TRA) 72 months to 30 September 2018 (longest period available)
The value of units can fall as well as rise and past performance is not an indication of future returns.
Key Name Performance Volatility
A Model Portfolios (variable - MP7 - RSM 100%) - (R) GTR 91.11 8.08
B AFI Aggressive TR in GB 78.20 7.77
C DAN GPP - DAN GPP Aegon ATR 4 15 yrs+ (2016/17) 74.75 8.22
D FTSE All Share TR in GB 70.67 9.60
E PN Mixed Investment 40-85% Shares GTR in GB 58.30 6.67
Total Return Chart - Passive v Active
ATR 3 – Balanced Risk (15yrs+ to TRA) - 72 months to 30 September 2018 (longest period available)
The value of units can fall as well as rise and past performance is not an indication of future returns.
Key Name Performance Volatility
A Model Portfolios (variable - MP6 - RSM 100%) - (R) GTR in GB 80.02 6.87
B FTSE All Share TR in GB 70.67 9.60
C DAN GPP - DAN GPP Aegon ATR 3 15 yrs+ (2016/17) GTR in GB 65.94 7.61
D AFI Balanced TR in GB 58.33 5.98
E PN Mixed Investment 40-85% Shares GTR in GB 58.30 6.67
Pricing Spread: Bid-Bid • Currency: Pounds Sterling
86.0
84.0
82.0
80.0
78.0
76.0
74.0
72.0
70.0
68.0
66.0
64.0
62.0
60.0
58.0
56.0
54.0
52.0
0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 6.5 7.0 8.5 9.0 9.5 10.0 10.5 11.0 11.5 12.0 12.5 13.0
erformMean nce of 5.9
MeanA nn. Vol atility of 7.61
A
B
C
D E
13.5 14.0 14.5 15.0
30/09/2012 - 30/09/2018 © FE 2018
7.58.
0Ann. Volatility
%
Perf
orm
an
ce
Full Ethical / SRI fund options
EdenTree Investment Management
Brown Advisory
F&C Asset Management
Kames Capital (subsidiary of AEGON NV)
Liontrust – formerly Alliance Trust
Pictet
Quilter Cheviot
Rathbone Brothers
Royal London
Sarasin & Partners
Standard Life
Stewart Investors
SVM Asset Management
Unicorn Asset Management
❑ Aegon’s own ARC SIPP funds mix – pre-set managed asset mix
❑ Or our Patterson-Mills actively managed Ethical SRI Rated Portfolios using:
Retirement flexibility - your Aegon workplace SIPP
Up to your retirement, at your retirement, throughout your retirement
Truly flexible financial planning:
➢ build-up of funds – wider whole funds universe to access
➢ at your chosen retirement date, no need to transfer as your Aegon SIPP allows:
✓ take tax-free cash as and when you choose
✓ withdraw taxable pension payments as and when you choose
✓ vary your pension payments (inc. ad-hoc amounts) as and when you choose
➢ place some of your funds into guaranteed income products should this be suitable*
* Additionally, the guarantee of an annuity option remains at any time if ongoing investment risk not suitable
Flexible Access @ retirement
Individual Savings Account (ISAs)
❑ Annual limit £20,000 each (2018/19):o regular contributions from £100pm
o Transfers-in of old ISAs, PEPs permitted (outside of allowance)
o Competitive costs with online access
❑ Flexibilityo No fund size lower limit
o Contributions can vary or stop / start
o Withdrawals can be made and re-invested later (same tax year)
❑ Investment strategyo Risk-graded model portfolios – Rayner Spencer Mills Research
o Wealth management quality active investment selection
o Low cost access within your Workplace ARC a/c
Investment ISA / GIA
Aegon Workplace ARC SIPP
Pension Contributions
Tax Relief
PM Passive Portfolios
PM Active Portfolios
Flexible Access @ retirement
Investment ISA / GIA
22
What percentage of the UK’s population are on track for the retirement they want?
13%
Retiready
Retirement readinessIs the UK on track?
Aegon UK Readiness Report, April 2017
23
The digital service that lets you
take control of your retirement
savings
Retiready
What is Retiready?Making retirement planning simple
24
The activation emailThe first step
We’ll send you an activation
email, simply follow the short
journey and you’ll have
access.
Retiready
25
Retiready
Retiready homepageWhere it all starts
26
• Current workplace value.
• Last contribution received.
• Links to documents, transactions,
fund performance and fund activity.
• Links to switching, one off and
regular contribution support articles.
Retiready
Your savingsUnderstanding the value of your retirement savings
27
Retiready
Your Retiready scoreA measure of the probability of you hitting your goal
28
Retiready
Goal PlannerUsing the planner
29
The dashboardARC’s homepage
ARC
30
Your account summaryYour portfolio and transaction history
ARC
31
Use Aegon webchat
Send an email to
Call us on 03456 100 072
Questions
Any questions?We can answer them
32
To retirement - and through itA whole of life solution
Using Retiready will help you to take care of planning your retirement and ARC will support you
through the other two stages – growing your investments and taking an income.
ARC can help you build up your savings and
take an income when ready, offering you the
flexibility to change it if you need to.
Retiready provides account information and can
help you plan for your retirement
Planning your journey Investments now and later, income
Summary
Summary
❑Aegon Workplace ARC SIPP – reduces costs now and for the future
❑Your existing funds – automatically switched to the new scheme
❑Actively managed investment portfolios now available from Patterson-Mills (inc.
Ethical / SRI)
❑At retirement flexibility – no transfers-out, all under one roof
❑Your ARC a/c – at any time add ISAs and GIAs monies alongside (similar portfolios
available)
❑Online tools – Aegon’s Retiready platform easy to use on any device
❑Now to answer your questions
33
Aegon is a brand name of Scottish Equitable plc (No. SC144517) and Aegon Investment Solutions Ltd
(No. SC394519) registered in Scotland, registered office: Edinburgh Park, Edinburgh EH12 9SE. Both
are Aegon companies. Scottish Equitable plc is authorised by the Prudential Regulation Authority and
regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Aegon
Investment Solutions Ltd is authorised and regulated by the Financial Conduct Authority. Their
Financial Services Register numbers are 165548 and 543123 respectively. © 2018 Aegon UK plc
Thank you for listening.
Members of the Simply Biz Adviser Group and directly authorised and regulated by the
Financial Conduct Authority (ref: 774841).
Patterson-Mills Financial Planning Ltd
7 Furzton Lake, Shirwell Crescent, Furzton Milton Keynes, MK4 1GA
Tel: 01908-503741
Email: [email protected]
www.pattersonmills.com
This presentation summarises investment types; specific recommendations can only be made once each Member has a detailed
discussion with Edward or Chris from Patterson-Mills. It is only after discussion with you, that we can be certain of the suitability of
an investment or arrangement or for your investment strategy to be confirmed. Once such suitability has been agreed with you, you
will be sent our confirmation letter detailing our recommendations and agreed actions, including why specific recommendations are
deemed as appropriate financial decisions for your circumstances and you will be covered by the UK authorised investment
Guarantee from the FSCS for all relevant recommendations.
October 2018
Small Print
The value of investment units can fall as well as rise and past performance is not an indication of future returns.