As with all modern, auto-enrolment compliant workplace pensions, a default investment strategy is provided for members who join the scheme but do not wish to make their own investment decisions.

Although it can be beneficial for members to have active participation in how their money is invested so their preferences and future plans can be considered, we recognise some pension savers aren’t comfortable making investment decisions but are content to save into a workplace pension where these decisions are taken on their behalf.

Our Default Investment Strategy, which we call the ‘Lifestyle Strategy Fund’, provides members a quality alternative if they have yet to, or do not wish to, choose an investment for themselves.

When members default to our Default Investment Strategy, we invest their pension in a way that is designed to grow their savings in the long term during their early and mid-career years via a carefully selected range of investment funds managed by State Street Global Advisors. This provides a broad portfolio of underlying investments such as stocks and shares, government and corporate bonds, which we expect to provide a financial return.

Over the years, we will change the mix of these investments depending on the financial outlook and how far they are from retirement. On approach to retirement, we will automatically ensure their money is invested for the short term, making sure it is ready to be taken when it’s needed. The Default Investment Strategy is designed to migrate members’ investments into cash by age 65 or whichever retirement date they provide us.

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Applies to Creative Workplace Pension
Applies to Creative Auto Enrolment Pension

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To provide members with an investment approach suitable for their age and proximity to retirement, we use a range of different funds in varying amounts which change as they get closer to retirement.

Underlying Investment Funds

These are:

ML Creative Accumulation Fund:

for members who are in their early-to-mid career

ML Passive All Stock Corporate Bond Fund:

for members who are in their mid-to-late career

ML Sterling Liquidity Fund:

for members who are in their later career / near to retirement

The following chart shows how we use a combination of these 3 investment funds and how their proportions change as members get closer to retirement.

Unless they indicate otherwise, we will assume a retirement age of 65. Members can easily manage and change their planned retirement age using the Creative Pension Trust Member Portal and we will automatically adjust their mix of investments accordingly.

Underlying Investment Funds used in our Default Investment Strategy

Investing for early-to-mid career savers

ML Creative Accumulation Fund
Fund Aims
The fund aims to provide long-term investment growth through a diversified allocation, investing in equities and fixed interest securities. To achieve this, the fund contains holdings in the following investment funds:
SSgA UK Equity Index Fund
SSgA Sterling Non-Gilts Bond All Stocks Index Fund
SSgA International Equity Index Fund
SSgA UK Index Linked Gilts Over 5 Years Index Fund
The asset mix of the fund will be reviewed periodically and may be amended if a review indicates that it would be in investors’ best interest to do so. This means in future the Fund could be invested in different funds and additional asset types, which could reduce the level of investment in equities and / or bonds. Please check the fund factsheet for latest details on its holdings.
Risk Profile: Average
Launch Date: 01/02/2018
Annual Management Charge1: 0.30% p.a.

1 Other periodic charges may be incurred by the fund from time to time. These do not include the cost of buying and selling stocks for the fund. Please see the fund factsheet for further information.

Typical investment holdings for this fund

Funds used:

Investing for mid-to-later career savers

ML Passive All Stocks Corporate Bond Fund
Fund Aims
The Fund aims to provide long-term investment return through an allocation to the UK Corporate Bond market. This Fund will invest using a passive management strategy, aiming to perform in line with the UK Corporate Bond market on a consistent three-year rolling basis. To achieve this, the fund contains holdings in the following investment funds:
1M&G All Stocks Corporate Bond Fund
Bailie Gifford Investment Grade Bond Fund
Insight UK Corporate All Maturities Bond Fund
The asset mix of the fund will be reviewed periodically and may be amended if a review indicates that it would be in investors’ best interest to do so. This means in future the fund could be invested in different funds and change its underlying holdings. Please check the fund factsheet for latest details on its holdings.
Risk Profile: Moderately Cautious
Launch Date: 01/08/2009
Annual Management Charge1: 0.30% p.a.

1 Other periodic charges may be incurred by the fund from time to time. These do not include the cost of buying and selling stocks for the fund. Please see the fund factsheet for further information.

Typical investment holdings for this fund

Funds used:

Investing for later career savers

ML Sterling Liquidity Fund
Fund Aims
The Fund aims to provide a return through an allocation to the short-term UK money market. The Fund aims to outperform the short term UK money market on a consistent three-year rolling basis. To achieve this, the fund contains holdings in the following investment funds:
L&G Cash Fund
The asset mix of the fund will be reviewed periodically and may be amended if a review indicates that it would be in investors’ best interest to do so. This means in future the fund could be invested in different funds and change its underlying holdings. Please check the fund factsheet for latest details on its holdings.
Risk Profile: Very Cautious
Launch Date: 01/07/1997
Annual Management Charge1: 0.30% p.a.

1 Other periodic charges may be incurred by the fund from time to time. These do not include the cost of buying and selling stocks for the fund. Please see the fund factsheet for further information.

Typical investment holdings for this fund

Funds used:

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I realised the necessity of sorting my pension out and decoding how I am going to do this.

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Presentation was very thorough and outlined all the options available.

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I didn't really fully understand pensions and how they worked prior to this and now I feel assured and confident to make a decision to save for my future.

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Extremely useful presentation. The Creative representative explained the scheme in terms understandable by everyone.

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It helped explain our options very simply so much easier to understand rather than the usual jargon.

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