the legal & general independent governance committee (igc) · 2020-04-02 · annual report 2020...

The Legal & General Independent Governance Committee (IGC)Annual report for the year ending 5 April 2020

Independent Governance Committee

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ContentsWelcome to your annual update from the IGC 3

Chair’s report 5

How we assess members’ value for money 8

Investment returns 9

Default strategies and investment choice 13

Member service and administration 19

Costs and charges 23

Member engagement 26

Accessing your pension 30

Mature Savings 34

Appendix 1: Meet your IGC 38

Appendix 2: Fund costs and performance 44

Important notes 61

Addendum - Update on Transfer of Mature Savings and GPP 2000 business to ReAssureAt the time of writing this report the Mature Savings and the Group Personal Pension Plan 2000 business were due to be transferred to ReAssure in April 2020. The following report was therefore written on this basis. Just prior to publication Legal & General and ReAssure jointly agreed to postpone the transfer as a consequence of the risks of executing a highly complex operation during the Covid-19 crisis. The IGC will continue to oversee the Mature Savings and the Group Personal Pension Plan 2000 businesses on behalf of members until such time as the transfer is completed. You can find out more at legalandgeneral.com/policytransfer

https://www.legalandgeneral.com/policytransfer/

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Welcome to your annual update from the IGCAs the Independent Governance Committee (IGC), it’s our job to make sure the money in your Legal & General pension scheme is safe and being well managed.

In this report you can read about the work we’ve done and what we’ve achieved for members during 2019.

Our responsibility to youWe’re committed to protecting your pension. We use our combined knowledge, experience and skills to make sure you’re getting a good deal from your scheme. This includes (but isn’t limited to) checking that:

• scheme is good value for money, and the costs and charges are reasonable

• the default funds (the ones you will invest in if you don’t choose something for yourself) are suitable

• the range of self-select investment choices can reasonably be expected to deliver the returns people are looking for to suit their own circumstances and timelines

• you can easily access your savings when you retire, and there are flexible options for taking your money

• you receive clear and regular communications about your pension

• you can easily access help and information when you need it, and that customer service is efficient and accurate

We measure how well Legal & General perform across these areas. We also offer impartial advice when they need an independent view, and suggestions on how they can improve where needed. And if they don’t deliver, we have the powers to hold them to account to the regulator, the Financial Conduct Authority.


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Who we areWe’re a group of six people who’ve been brought together to work on your behalf.

Five of us are fully independent of Legal & General, so there are no conflicts of interest in keeping your interests front and centre when overseeing your pension. And while we all share the necessary skills and experience to act in your interests, we’re fortunate to have a broad diversity of background, personality type, education, subject matter knowledge and career history. We believe that diversity (in the broadest sense) leads to better discussions and better decision-making on behalf of all our members.

You can read more about each of us on pages 39-41.

How to contact usIf you have any questions about this report, or you need to tell us about an important issue that affects your pension, email [email protected].

The IGC oversees two Legal & General business units: Workplace Pensions and Mature SavingsWorkplace Pensions manages the current pension range that is available to new employers. This is called the WorkSave Pension Plan.

In addition, Workplace Pensions manages the policies of members who are still saving into two older products. These members are described as “active” members. The two products are the Group Personal Pension Plan 2000, and the Group Stakeholder Pension Plan. These are no longer available to new clients.

Our work relating to Workplace Pensions is dealt with on pages 9-33

Mature Savings manages the older pension range that is no longer available to new clients. This includes:

• Active members and members who have left their employer (known as deferred members) of the Group Personal Pension Plan No 1

• They also provide the administration for some deferred members of the Group Stakeholder Pension Plan

Legal & General sold the Mature Savings business to ReAssure in December 2017. At the time of writing, the transfer is due to be completed in April 2020. We’ve kept a close eye on the transfer process, and we’ve included an update for Mature Savings members later on in this report.

Our work relating to Mature Savings is described on pages 34-37.

If you’re not sure which team looks after your pension, you can call Legal & General on 0345 070 8686. open between the hours of 8:30am and 7:00pm Monday to Friday and 9:00am to 12:00 midday Saturday. Call charges will vary. Legal & General may record and monitor calls and please be aware the Helpline staff cannot provide financial advice.

If you have your policy number to hand, they’ll be able to tell you quickly. You can find it on your Annual Statement. But if you don’t have it, don’t worry, they’ll still be able to help you – it may just take a little longer.

mailto:IGC%40lgim.com?subject=

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Chair’s report I’m pleased to welcome you to the fifth annual report of the Independent Governance Committee (IGC). Over the last 12 months, we’ve made good progress on some important issues for members. You can read about them below and find out where we’re focusing our efforts for the year ahead.

We’re assessing and reporting on whether you get value for moneyOur duty is to scrutinise the value for money provided by the Legal & General pension schemes that we oversee. It’s our duty to raise any concerns we have with Legal & General and, if necessary, to escalate those concerns to the Financial Conduct Authority.

In 2019, we reviewed how we assess “value for money”, including what it means for members, and how we can measure Legal & General’s performance. We base our assessment on 6 criteria:

• Investment returns – how are your investments performing?

• Default strategy and investment choice – are the default funds (the ones you’ll invest in if you don’t choose something for yourself) good value and fit for purpose? And is the range of available investments appropriate?

• Member service and administration – do you get good customer service, do Legal & General carry out your requests efficiently and accurately?

• Costs and charges – are the costs that relate to your pension scheme reasonable?

• Member engagement – are the communications you get from Legal & General clear and available in a variety of ways that suit you?

• Accessing your pension – can you access your pension savings in a simple and flexible way?

Dermot Courtier, Chair


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Our overall value assessmentLast year, because the Mature Savings business was due to transfer to ReAssure during the course of 2019, we carried out separate value assessments for Workplace Pensions and Mature Savings. In the event the transfer of Mature Savings is still ongoing, we’ve again scored Mature Savings separately from Workplace Pensions.

This year, we fine-tuned two of the six criteria we use to assess the value that Legal & General offer. This is set out in the following section on Value for Money.

For Workplace Pensions, our overall judgement is that Legal & General offer good to very good value for money. We were pleased that they comprehensively reviewed and improved their range of default funds, and that they moved 75,000 members into a more modern and diversified default fund – the Multi-Asset Fund – that’s again outperformed the sector benchmark. We were also happy to see some costs come down and a number of significant initiatives – many of them online – that are boosting member engagement.

The only criteria not judged ‘very good’ this year was Member Service and Administration. We identified clear reasons for this and were pleased to see Legal & General

make a strong recovery in this area in the last 3 months of 2019. We will keep these under review.

For Mature Savings, our overall judgement is that Legal & General offer good value for money. Throughout the transfer of the business to ReAssure, Legal & General has done well to maintain – and even improve – high member service standards, and to manage staff morale and retention effectively.

What we’ve been focusing on in 2019Changing how we judge value for moneyThis year we’ve added weightings to the value for money criteria to reflect their relative importance. We think most members would want us to use our knowledge and experience to more accurately assess the value for money that Legal & General offer.

Monitoring the transfer of some schemes to ReAssureAt the time of writing, the transfer of some schemes to ReAssure was expected to go ahead in April 2020. We’ll continue to keep a close eye on the transfer to make sure it’s completed smoothly and efficiently. In particular, we’ll be focusing on the security of members’ benefits and data.

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And we’ll be staying in touch with ReAssure’s IGC until the transfer is complete.

Working with other IGCs to compare our providersIn 2019, we took part in our third benchmarking project with four other IGCs across the pensions industry to understand how Legal & General are performing compared with other pension providers. This year the project included a member survey carried out by the Institute of Customer Service. We received the results at the end of 2019, which have helped us to identify areas to focus on in 2020.

Holding our Annual Members Forum in July 2019The IGC’s Annual Members Forum took place in July 2019 in London. We gave members an overview of what the IGC does, a review of the year and a summary of the IGC’s value for money assessment. Members also had a demonstration of some of Legal & General’s member engagement tools including Manage Your Account (known as MYA) and the new personalised video benefit statement. The forum ended with an interactive session on Environmental, Social and Governance issues, where members discussed the results of the 2019 ESG survey and added their own views on what was important to them.

Monitoring the impact of external social and economic risksWe’ll continue to monitor how Legal & General plan for the impact of significant external factors such as COVID-19 and the potential impact of Brexit on scheme members’ pensions. We have regular discussions with the risk and business continuity planning teams to understand and challenge Legal & Generals plans. We’ll take any action we need to.

How we work with Legal & GeneralWe continue to have a good working relationship with Legal & General. We were pleased that in March 2020, Legal & General appointed a Senior Client Director to work directly with the IGC support team at Legal & General.

Welcoming new people to the teamWe were pleased to welcome two new members of the IGC support team at Legal & General. Kim Brown joined in February 2020 as Pension Scheme Director to replace Adrian Spann, and Sarah Pengilley joined in January 2020 as a second Pension Scheme Manager, working alongside Tessa Watson.

You can read their profiles on page 42-43.

Our priorities for the year ahead Continuing to monitor the impact of COVID-19We will continue to monitor the impact of COVID-19 on the global investment market and economy, working with L&G to ensure that service is maintained for the membership in these very challenging circumstances.

Continuing to focus on Environmental, Social and Governance factors (ESG) (p.18)During 2020 we expect to see ESG (Environmental, Social and Governance) factors become even more integrated into the Legal & General-provided default range.

We’ll also look to increase our understanding of how effectively external fund managers are applying ESG principles across the full range of funds available to members. And we’ll continue to oversee ESG policy and practice.

Oversight of the investment solutions for members taking their pension as drawdown (p.32)Legal & General are designing new investments to reflect the fact that more members are now taking money from their pension (called “drawdown”), rather than buying an annuity. These investments are appropriate for members who opt for drawdown without taking financial advice. They’re due to launch in summer 2020 and we’ll be keeping a close eye to ensure they offer value and on how well they perform for members.

Dermot Courtier Independent Chair

April 2020


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How we assess members’ value for moneyEvery year we assess the value for money offered by Legal & General’s pension schemes. We measure this against six criteria. 1. Investment returns2. Default strategies and investment choice3. Member service and administration4. Costs and charges5. Member engagement6. Accessing your pensionLast year, because of the upcoming transfer of the Mature Savings and the Group Personal Pension Plan 2000 business to ReAssure, we decided to score Mature Savings separately from Workplace Pensions. During 2019, this transfer was delayed – at the time of writing, it’s due to complete in April 2020. As a result, we’ve again scored Mature Savings separately from Workplace Pensions ahead of its expected transfer (please see pages 34-37), when it will become the responsibility of the ReAssure IGC. In the meantime, we’ve kept a very close eye on the Mature Savings business and maintained good communications with the ReAssure IGC.

WeightingsAlthough each of the six criteria is hugely important, we think that some are more important than others. So, in 2019, we decided to introduce weightings to reflect the relative importance of each criterion.

CriteriaWhile introducing weightings to arrive at the overall score, we fine-tuned two of the criteria. ‘Investment choice and returns’ has become ‘Investment returns’, and ‘Default strategies’ has become ‘Default strategies and investment choice’.Each criteria is scored between 1 and 6:1 is ‘unacceptable’. We’d be very disappointed to give this score. This would indicate an urgent need for rapid and significant improvement. 2 is ‘poor’. We’d be disappointed to give this score. This would reflect a need for rapid and significant improvement.3 is ‘acceptable’. Our standards are high, so this score would suggest a need for improvement.4 is ‘good’. We’d be happy with this score, but we’d still be encouraging Legal & General to find ways to improve further. 5 is ‘very good’. We’d be very happy with this score, but we’d still be encouraging Legal & General to find ways to improve further.6 is ‘perfect’. There’s always room for improvement, so we’d be unlikely to give this score.

Workplace Pensions assessment

Investment returns - 5

1 2 3 4 5 6

Weighting: 20%2019 Score: 5

Default strategies and investment choice - 5

1 2 3 4 5 6


Member service and administration - 3.5

1 2 3 4 5 6


Costs and charges - 5

1 2 3 4 5 6

Weighting: 15%2019 Score: 4.5

Member engagement - 5

1 2 3 4 5 6


Accessing your pension - 5

1 2 3 4 5 6


Overall - 4.7

1 2 3 4 5 6

Weighting: 100%

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Investment returns - Workplace


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Why investment returns are importantInvestment returns are critical to deciding the value for money members get. This is because they affect how much money you have to live on as you get older, whether you’ll be able to do the things you want to and how resilient you’ll be to any financial shocks. We look at investment returns after all costs and charges, which reflects what you actually get back on top of the money you invest. Because of this, we give investment returns a higher weighting than costs and charges.

Why we gave this scoreWe base our score largely on the performance of the Legal & General default funds. This is for two reasons. Firstly, because most members are invested in these default funds, and secondly, because all other options reflect a choice (we call this self-selection). This choice has been made either by the member themselves who has chosen a self-select option, or by the employer who, after taking advice, has decided on a bespoke default option.

The investment returns of the Legal & General default funds have consistently been very good, regularly doing better than their benchmarks – and often by meaningful margins.

Investment returns

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Score – 5.0Weighting – 20%

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Performance of the current product defaults As at 30 September 2019

Default Strategy

Fund Benchmark 1 year Performance

3 year Annualised Performance


Fund Benchmark Fund Benchmark Fund Benchmark

Main Default

Multi-Asset Fund

Multi-Asset Fund NTW3

ABI Mixed Investment 40-85% shares

9.8% 3.7% 7.1% 5.7% 8.9% 6.6%

Alternative defaults employers can choose from

Multi-Asset Drawdown Lifestyle Strategy

Multi-Asset Fund NTW3


9.8% 3.7% 7.1% 5.7% 8.9% 6.6%

Retirement Income Multi-Asset Fund NWD3

Bank of England Base Plus 3.5%

7.5% 4.2% 5.6% 4.0% N/A N/A

Pathway Target Date Funds

Pathway Fund 2050-2055 BE83

Composite benchmark

9.0% 4.2% N/A N/A N/A N/A

Future World Multi-Asset Fund

Future World Multi-Asset Fund BT63


At the end of September this fund had been operating for less than 12 months, so performance is not available for the period. Performance will be available on fact sheets to the end of 2019.

How Legal & General and the IGC have worked together to oversee investment returnsWe look at short-term (1 year), medium-term (3 years) and long-term (5 years) investment returns for all Legal & General default funds. We pay most attention to the long-term. This is because members are typically investing for the very long-term – often building their retirement pot for decades.

Legal & General research all the funds available for self-selection and included in the default options. They then monitor these funds on an ongoing basis to make sure that they meet appropriate standards. The IGC regularly reviews how Legal & General do this.

An independent investment adviser, appointed by Legal & General, checks that all Legal & General-provided funds are appropriate for members, and that any external funds are properly monitored. This independent analysis shows how the funds have performed compared with their benchmarks and looks at whether individual funds had higher or lower levels of risk than expected.

Following this review, we work with Legal & General to decide whether there are any particular funds that aren’t doing as well as we expect. Legal & General may place these funds on what we call a ‘watchlist’. This means that we can keep a close eye on how those funds are performing. Depending on what we find, we talk to Legal & General about whether they should remove these funds from the options available to members and switch members into a more appropriate and better managed fund.

What happened in 2019Legal & General’s default investment strategy continued to perform wellOver the last five years, the main default strategy, the Multi-Asset Fund, has generated an average return of 8.9% per annum, which outperformed the sector benchmark of 6.6% per annum for similar funds. That’s an extra £155 on a starting fund of £1,000 over and above the benchmark.


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The table above shows the performance of the current default funds, as at 30 September 2019. The fund performance is calculated after all fund charges. Other product charges – like the annual management charges – aren’t included.

As well as the default investment strategy, some employers have created bespoke default investment strategies. These are designed specifically for their own workforce and take into account factors such as age, likely retirement age, and contribution levels. Members can see how their own fund choice is performing by logging into Manage Your Account.

To see how all of Legal & General’s funds have performed, turn to Appendix 2 on page 44.

Legal & General continued to keep a close eye on fund performanceAt the end of March 2019, there were 5 self-select funds on the watchlist. Legal & General then closed one fund and closely monitored the others. At the end of October 2019 they negotiated a lower fund management fee for one of the remaining 4 funds while giving it some more time to see if its performance would recover.

By the end of 2019 there were 10 self-select funds on the watchlist, all of which Legal & General are monitoring closely. They’re being watched for various reasons including performance, changes in the management teams, and changes in market trends. We will continue to work with Legal & General to make sure funds are removed if concerns persist.

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Default strategies and investment choice - Workplace


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Why default strategies and investment choice are importantMost members invest their money using default strategies. These are either provided by Legal & General or they’re bespoke strategies that the member’s employer creates with the help of their own independent advisers. This means that the quality and appropriateness of default schemes are hugely important in generating good outcomes for most members.

At the end of 2019, we looked after over 1.9 million members with over £24 billion of assets. Of these members, around 1 million were invested in the Multi-Asset Fund alone and a further 600,000 were invested in Multi-Asset 10 Year Lifestyle funds. Members can be invested in more than one fund so there may be some duplication in these numbers, but they give an idea of the scale and importance of default strategies.

There are four current default options: Multi-Asset Fund, Multi-Asset Drawdown Lifestyle Fund, Future World Multi-Asset Fund, and Pathway Funds. Although the Future World Multi-Asset Fund is the most ESG-focused, all of the default strategies incorporate consideration of ESG risks,

Default strategies and investment choice

1 2 3 4 5 6


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long-term thinking, corporate governance and active ownership.

Investment choice is important because it allows members to create an investment portfolio that’s tailored to their individual needs and how they feel about risk. Making sure that ESG factors are incorporated into the fund range also allows members to invest in funds that align with their values – for example, funds that are carbon-neutral or exclude fossil fuel extractors, alcohol manufacturers or gambling companies.

Why we gave this scoreWe base our score largely on the quality of the Legal & General-provided default strategies. This is partly because so many members use them, and partly because, when assessing value for money, this is where Legal & General bears all the responsibility.

Legal & General’s investment adviser has conducted a detailed review of Legal & General’s default strategies and has found them to be appropriate, good and flexible. On top of this, our view is that they’re high quality and very good value for money.

As shown below, there have been some significant improvements this year. But, in a competitive market we expect Legal & General to continuously improve. Next year, we hope to see further integration of ESG factors across the Legal & General-provided default range and to be able to improve our score even further.

How Legal & General and the IGC have worked together on default strategies and investment choiceDefault strategiesLegal & General regularly review all the default investment strategies to make sure they’re still appropriate for members. Following each review, Legal & General report back to us at the IGC with their findings. Then we decide whether we need any more information, and what actions to take.

Every three years, there’s an in-depth review into the performance and appropriateness of Legal & General’s approved default strategies, which are where most members are invested.

Legal & General ask employers to review their own bespoke default strategies every three years, with the help of their own independent investment adviser. We monitor how these bespoke default strategies are governed, and we oversee the action plan developed by Legal & General to make sure the strategies are properly reviewed and that any necessary actions are taken. In particular, we

expect Legal & General to review the bespoke default if the employer no longer takes independent advice, and to reassure us that it’s still appropriate for members.

Investment choiceLegal & General work with the IGC as and when there are plans to change the standard investment range. This could be due to the launch of a new fund, such as the Future World Multi-Asset Fund, or the removal of a fund.

What happened in 2019Default strategies75,000 Group Stakeholder members were switched into a more modern and diversified default fundIn 2019, after discussing it with us, Legal & General moved 75,000 group Stakeholder members out of a default fund. This fund assumed most members would buy an income for life – also known as an annuity – and invested heavily in UK equities. The members were moved into a more modern Multi-Asset Fund that invests in a wider range of assets. This is important for members because it means they’re not putting all their eggs in one basket when it comes to investing their money, and it gives them more flexibility for how to take their money when they come to use it.

Transferring a lot of members to a new fund like this is complex. We monitored the outcome and concluded that it was very well managed, with transaction costs kept to a minimum.

Legal & General carried out a full review of their default strategiesEvery three years, Legal & General review the current and historic defaults for the Workplace Pension Plan, Stakeholder Pension Plan and Group Personal Pension Plan. This includes the four current default options: Multi-Asset Fund, Multi-Asset Drawdown Lifestyle Fund, Future World Multi-Asset Fund, and Pathway Funds. The default strategies are also reviewed to see how appropriate they are based on member demographics, regulation and investment strategy.

Legal & General are finalising the most recent review of the default strategies. They’ve looked at member behaviour and regulatory and market changes as well as costs, investment risk and performance. We’re expecting an emerging theme of increasing exposure to ESG, enhanced communication and a plan to address older default strategies.

As well as being reviewed by Legal & General, the default funds were reviewed by an independent investment adviser to check they’re appropriate and performing well.


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Here’s a summary of their assessment for the year ending 2019:

Multi-Asset Fund (MAF)The multi-asset strategy is appropriate for the majority of members as it has a controlled level of risk through investment in different asset classes. This provides an extra layer of protection in times of market volatility. The target of risk and reward that the fund manager takes is appropriate for members who do not have a set retirement date in mind or do not know exactly how they may wish to access their benefits.

Future World MAF (Multi-Asset Fund)Future World MAF has similar investment characteristics to the Multi-Asset Fund (MAF). However, the underlying assets focus more on ESG issues. For example, these funds exclude controversial weapons and ‘tilt’ away from investments with poor ESG scores and towards investments with good ESG scores. The manager, Legal & General Investment Management, defines the ESG process and, while this is innovative, it follows conventional measurable metrics to calibrate the tilts. So, from an investment strategy point of view, Legal & General’s Investment Adviser considers the Future World MAF appropriate as a default strategy.

Drawdown Lifestyle This is a lifestyle strategy where members are invested in the MAF until 3 years before their expected retirement date. After this point, they then gradually switch into the Retirement Income Multi-Asset Fund (RIMA). This is a suitable default for schemes where most members are likely to take their money as and when they need it in retirement – also called ‘drawdown’. This is because the RIMA fund’s risk and return profile is designed for post-retirement. Legal & General’s investment adviser also looked at whether there was additional risk for those who may not take income but choose to take cash or buy an annuity, and they considered that risk to be relatively low.

Pathway FundsPathway funds are ‘target-dated funds’ where the member has a single fund for the whole time they’re in the scheme. This fund changes where it invests over time as the members get closer to retiring. The funds are named by the date of expected retirement and members can be matched to the fund for the age they’re expected to retire. The advantage of these funds is that the strategy is managed by the fund manager who can make changes within each fund more easily. For example, they can increase or decrease the risk level, or introduce new

asset classes as they become available. Legal & General’s investment adviser evaluated the risk and return profile for this strategy and found it to be suitable for use as a default.

Over 250 bespoke legacy default strategies were analysedIn 2019, Legal & General completed investment analysis on over 250 bespoke default investment strategies to check that they’re still suitable. While many had no issues, there were some that did not meet the required criteria. Legal & General have already started addressing these, and in some cases, they’ve begun moving members into more appropriate default funds.

The Legal & General Pathway funds were improvedAs a result of this review, we encouraged Legal & General to improve certain aspects of the Pathway default funds. They took our feedback on board and have started making the following changes:

• Incorporating ESG more deeply into the growth phase of the funds

• Investing in equities for longer in the early years of the strategy

• Reducing the charges from 0.19% a year to 0.15%

• Changing which assets the funds invest in at different stages of the saving for retirement journey to better match how members are taking their money

Employers can access the full range of Legal & General-provided default strategies more easilyThe requirement for employers to take professional advice before choosing an alternative approved default strategy other than the standard Multi-Asset Fund. This makes it easier and more cost-effective for them to choose one of the alternatives Legal & General offer, such as the Future World Multi-Asset Fund.

ESG became more of a focus for the default fundsAt the end of 2018, Legal & General launched the Future World Multi-Asset Fund as a default investment option for employers who want to include a greater ESG focus. So, there are now four default strategies for employers to choose from: the Future World Multi-Asset Fund, the Multi-Asset Fund, the Multi-Asset Drawdown Lifestyle Fund and the Pathway Funds.

Although the Future World Multi-Asset Fund is the most ESG-focused, all of the default strategies incorporate consideration of ESG risks, long-term thinking, corporate governance and active ownership.

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In 2019, Legal & General made changes to further address ESG and climate risks in the default strategies. They made the Pathway funds available as a default strategy for employers. And, following the results of a member survey on ESG, they increased the ESG focus of these funds. They did this by factoring more ESG considerations into how the portfolios for these funds are constructed, as well as how the funds are managed.

Investment choiceRisk ratings were added to the fund factsheets Risk ratings help members understand the risk profile of individual funds. This information means they can understand the potential risk and reward of investing in certain funds, and how that could affect their investments.

Members can now find a fund’s risk rating on its fund factsheet. These ratings were previously only available in other documents. Now, the information members need when deciding where to invest their money is summarised in one place, making it easier for members to make informed choices.

The process for members to change their investments was rebuiltIn the past, members reported that they’d struggled to use the “change your investments” page on Manage Your Account. Around half of users gave up before they’d managed to make a change. To try to fix this, Legal & General made a series of improvements to the page, including:

• Using plainer language to help members navigate the options

• Adding links to simple explanations of technical terms

• More clearly signposting the risk and reward associated with changing investments

For members wanting to manage their own investments, these improvements have helped to make the process much more straightforward.


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Environmental, Social and Governance (ESG) investingWhat is ESG investing?ESG investing involves incorporating environmental, social, and governance factors into an investment strategy. Doing this can reduce long-term risks – for instance from climate change – and improve investment returns. The goal is sustainable wealth creation that helps members achieve their financial objectives, but achieving that in a world worth living in. It’s a balancing act.

How do Legal & General incorporate ESG factors?We expect Legal & General to identify, and – where possible – quantify ESG risks in all the investments they make on behalf of members. We also expect them to take appropriate steps to protect the value of members’ money, either through engaging with companies to change their behaviour, or by stopping investment in certain companies (also called ‘divesting’).

We support Legal & General’s policy of using their influence with companies – and if necessary, their votes – to drive positive change that means less harm is done. Like them, we believe engagement leads to better outcomes for clients. Only where it’s clear that this won’t work do we support divestment, and Legal & General agree with us on this.

We also expect Legal & General to incorporate ESG factors while taking a very long-term view. Long-term ESG risks are important because many members will be saving into their pensions for decades, and then using that money to give themselves an income for decades after that.

What’s included in each of the three ESG criteria?We ask Legal & General to explain their policies and their approach for each of the three ESG elements – environmental, social, and governance.

Environment includes:

• Climate change and its impact on the value of companies they invest in

• The risk these companies pose to the climate

• Land, sea, and air pollution that may damage food supplies, the ecosystem, and people’s health

Social includes:

• The attitude, policies and practices of the companies Legal & General invest in to:

• Paying the living wage

• Developing their people

• Paying tax

• The role these companies play in their communities

• The record of these companies on Corporate Social Responsibility, modern slavery and human rights

Governance includes:

• How the companies Legal & General invests in govern themselves in terms of:

• The composition of the Board

• Executive pay

• Diversity

• Risk management

• Appointing auditors and controlling risk

We also ask for evidence that Legal & General have engaged with companies and used their voting power as investors to put their policies into practice.

Let us know what you think Finally, we ask members to give us their feedback on ESG through the member helpline. Although this feedback helps to shape our views and challenge Legal & General, these views won’t represent those of every member. So, not all feedback will be included in the Legal & General ESG policy. If members want to exclude certain activities from their investment portfolios, they can do this by choosing their own investments.

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Member service and administration - Workplace


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Why member service and administration is importantFor many members of a pension scheme, their pension fund will be their biggest asset. For others its value will be second only to the value they have in their property. So, when members contact their pension provider, they need to be dealt with respectfully, promptly and efficiently.

The administration of pension schemes is also vital. For schemes to run smoothly, there’s a vast array of administrative processes that need to happen. These include collecting contributions, processing them and making investments, as well as making sure all records are accurate and investments are kept safe. And if a member wants to get a valuation, switch a fund or take money out, or amend a nomination form, the response needs to be prompt and right first time.

Why we gave this scoreThis was a reduction on last year’s score of 4. It’s due to a fall in member service and administration standards in the middle part of the year. The main reasons for this were staff shortages in specialist areas and IT systems availability.

Member service and administration

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While this fall was disappointing and we considered giving a score of 3, we decided that a smaller reduction of 0.5 points was right. This is based on the significant recovery in standards that we saw in the last three months of 2019. We addressed this area as soon as we saw standards dropping and we were very impressed by the effort and commitment Legal & General put in to get closer to the very high standards that they and we have set.

To make sure we don’t see a repeat of staff shortages, Legal & General have set up an internal academy and apprenticeship scheme along with an impressive staff wellbeing programme. They’ve also made a significant effort to deal with IT issues as soon as they crop up.

We’re now comfortable that member service and administration is heading in the right direction, but we’ll be watching this closely and expect to see further improvements in 2020.

How Legal & General and the IGC have worked together to improve Member Service and AdministrationLegal & General update us on their service performance statistics at every meeting. We look at a broad range of functions across the effectiveness of the helpline, complaints and the most important processing tasks such as making payments to members. Between these meetings, the IGC’s Pension Scheme Director also gets monthly data on how – and how well – Legal and General have been helping members.

We also review this data to check how long it takes them to answer members’ queries, as well as how well they respond to those queries.

Our job is to challenge Legal & General if the statistics suggest their service falls below our expectations, and to make sure there are plans in place to improve it. Over the course of 2019, we suggested a number of ways to enhance the reporting of the key data so we better understand what needs to improve and are able to keep a close eye on these areas.

What happened in 2019Some service levels fell below the agreed standardIn 2019, the standard of service in Workplace Pensions fell below some of the very high standards we’d agreed with Legal & General. We asked them to explain what had happened and what steps they were taking to improve the situation.

Legal & General told us that there had been a drop off in the speed of answering and dealing with calls to the member helpline, delays to some member requests for payments and a consequent increase in complaints.

Although these delays were relatively minor (typically days rather than weeks) and members were not financially disadvantaged, they were outside our agreed service standards. Both the IGC and Legal & General recognise that prompt payment is particularly important to members.

These problems didn’t affect any critical payment collection, fund purchase, record keeping or safeguarding of client money.

We identified that the principle reasons behind this slippage were staff shortages at a time of unprecedented volumes of member requests and IT system availability.

Legal & General told us that they were taking the following steps to address the problems, and to restore the service to the agreed standard:

• Increasing the number of Legal & General colleagues supporting members’ requests

• Improving the training of new and current team members

• Investing in colleagues’ wellbeing and engagement

• Improving resource planning and forecasting to better predict spikes in activity, based on a number of different scenarios

• Continuing to review processes and service improvements

• Investing in self-service

• Enhancing the IT infrastructure

We’ve received progress updates on all of these actions, and we’re satisfied that service levels have been improving and recently are close to the levels we expect. We’ll continue to monitor the situation, and we’re pleased that Legal & General are focusing on enhancing members’ experience across the board.

In November 2019, we visited the Cardiff administration team. We saw how service is delivered and discussed related activities – such as training and development and opportunities for career progression. By helping us understand how the administrative team works and the challenges individuals face, this visit will make our discussions with Legal & General – and any advice we give them – more constructive.


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What can the helpline help with?Members call the helpline about a wide variety of issues. The team can’t give you financial advice, but they can give you guidance on your options. Questions members ask range from “How do I start taking my money?” to “Can you tell me where my money is invested?” and “Can you explain what these charges are for?”

If you have a question about your pension, give them a call on 0345 070 8686. Open between the hours of 8:30am and 7:00pm Monday to Friday and 9:00am to12:00 midday Saturday.

Call charges will vary. Legal & General may record and monitor calls and please be aware the Helpline staff cannot provide financial advice.

The way customer satisfaction (CSAT) scores and feedback are gathered was improvedIn April 2019, Legal & General started capturing feedback by emailing members. They’ve also been asking members for their views more often, and they now look at scores and feedback from a broader range of member experience. As a result, the number of responses has increased, and the quality of data is much improved.

The current CSAT score, measured in October 2019, was 82.2% - down from 89.2% in 2018. This fall is unsurprising, based on the changes to the quality of data received and given the service issues already described, but we hope it will soon improve thanks to all the measures put in place. We will be monitoring this closely throughout 2020. The richer information that Legal & General are now getting from member surveys will also help them improve the service further.

Response to COVID-19 Legal & General have extensive business continuity plans. From the outset, Legal & General’s Major Incident Team has been meeting several times each week to ensure all plans are in place. We have been kept up to date with the activity to ensure that the scheme can continue to operate effectively and, if necessary, with reduced numbers of staff.

A microsite was set up to tell members how Brexit could affect their pension Some members contacted Legal & General to ask how they might be affected if the UK left the European Union without a withdrawal agreement. They were concerned about how investments would be affected and what they should do if they were retiring abroad.

Legal & General set up a microsite that answered members’ most frequently asked questions and regularly updated us on member activity around Brexit. Legal & General updated this microsite when the UK’s departure from the EU was delayed until 31st January 2020, with an agreement for a transition period. The link to the site is: legalandgeneral.com/workplace/igc/brexit

http://www.legalandgeneral.com/workplace/igc/brexit

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Costs and charges - Workplace


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Why costs and charges are importantCosts and charges act as a drag on your investment returns and are particularly important because this effect compounds over time. So, what may sound like quite a small difference in costs can actually amount to quite a big difference in the amount of money you’ll have available when you need it.

Your policy has three types of costs:

1. Scheme charges, which cover the administration of your scheme

2. Fund charges, which cover the investment management and administration of the funds you invest in. Stakeholder and GPP 2000 members have their fund charges included within the scheme charge for Legal & General funds

3. Transaction costs, which are incurred on buying and selling fund investments when members’ money is either put in or taken out of a fund, or because the fund manager has decided to change some of the investments in the fund.

Costs and charges

1 2 3 4 5 6


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Why we gave this scoreWe gave a higher score for costs and charges this year than in 2019. This was for a number of reasons.

• The price of the Pathway funds came down from 0.19% to 0.15% — a reduction of over 20%.

• Legal & General-provided default strategy costs are competitive compared to the rest of the market

• Legal & General is consistently willing to share the benefits of economies of scale with members rather than just taking all the benefit to increase profits. The FCA criticised the asset management industry as a whole for failing to do this in a major report in 2017.

How Legal & General and the IGC have worked together on costs and chargesThe IGC checks, discloses and publishes all costs. We look for opportunities to reduce costs for members wherever possible.

At least every three years we analyse all aspects of Legal & General’s default investment strategies in depth. These are the strategies that members are placed into unless they consciously choose something different. Our reviews include all the charges for each strategy, and we discuss possible improvements with Legal & General.

Once a year, we monitor transaction costs – the costs funds incur when buying and selling investments. To help us do this, Legal & General share with us the annual transaction costs for their own funds and for the funds being run by external investment managers.

You can find out more about the transaction costs for each fund in Appendix 2 on page 44.

What happened in 2019Charges for the Pathway funds were cutLegal & General have reviewed the costs for the Pathway funds and they’ve decided to cut the cost from 0.19% to 0.15%. This makes the charges better value. The cut benefitted around 2,000 members in the first quarter of 2020. As the average member has £40,000 in these funds, this reduction will have a significant effect on the amount members get when they retire.

Over 30 years, members investing in the Pathway funds can save an average of £1,428 in costs, increasing the amount of money they can get when they stop work

This is based on the average Pathway pot of £40,000 and a growth rate of 4%

Additional administration charges were removed for WorkSave Pension Plan members wanting to access their pension in stages (“Drawdown”)There are a few different ways members can take the money in their pension. To cover the extra work needed to process these transactions, there were certain charges in place. After discussion with the IGC and a review of the charges members pay at retirement, Legal & General removed the £250 they charged members for setting up regular payments out of their pension funds (known as “flexi-access drawdown”). On top of this, they’ll also remove the £20 charge for making more than one occasional withdrawal in a year.


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Member engagement - Workplace

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Why member engagement is importantMembers’ pensions are likely to be a significant proportion of their wealth. So it’s really important that pension providers help their members to engage more with their pension, particularly if that engagement leads to greater overall financial wellbeing. Member engagement can help members recognise the value of increasing their own contributions and give them the tools, education and services to take greater control of their wider personal financial affairs.

Why we gave this scoreThere have undoubtedly been improvements in member engagement in 2019. We were pleased to see Legal & General making it easier for members to interact with their pension information online – with everything from a new ESG hub that informs members’ investment decisions to a new member app and an improved member portal.

We were also happy that Legal & General are continuing to invest in their award-winning Wellbeing Portal, which helps members take control of their money.

Member engagement

1 2 3 4 5 6



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And on top of this, we were impressed by the firm’s roll-out of personalised video statements and the launch of their new “wake-up” packs to help members approaching retirement get to grips with their options.

However, the market overall has been advancing. So, what was very good in 2018 would simply be good in 2019. That’s why, despite these improvements, we have retained a score of 5.

How Legal & General and the IGC have worked together to improve member engagementThe IGC meets regularly with the communications team at Legal & General to discuss and advise on what they’re doing to improve member engagement and what they’ve got planned. This covers everything from day-to-day communications – like responding to members’ requests and reminding members to review their savings – to broader projects like Financial Wellbeing and video benefit statements.

Hearing what members have to sayWe’re very keen to hear directly from members. Each year, we hold a Member Forum where people can come and find out what’s in the Annual Report, listen to expert guest speakers and ask questions. We occasionally run member surveys – both specific to Legal & General, and in partnership with other IGCs.

Our Senior Client Director represents us at Legal & General’s “Customer and Client Experience Forum” meetings. These meetings explore members’ experiences of dealing with Legal & General, and review complaints and customer satisfaction indicators. The group then identifies what can be done to improve the service that members get and what changes to systems, processes and communications need to be made. The Senior Client Director then reports this back to the IGC for our comment and feedback.

Working directly with employersAn IGC member always attends Legal & General’s quarterly DC User Group. This is a group of employer representatives from across different schemes. In these meetings, employers hear Legal & General’s plans to improve member engagement and experience across Workplace Pensions. We also listen to feedback from the group about past projects and invite their views on projects that are coming up.

On top of this, we get in touch with employers directly and ask for feedback. During these meetings, we hear from employer representatives who administer the schemes to understand what they think of Legal & General as a provider.

This feedback helps us decide where to challenge Legal & General and what to encourage them to focus on.

What happened in 2019A new member app was launchedBuilding on the mobile-optimised website and Manage Your Account (MYA) portal, Legal & General have launched the “Unu” app. This app allows members to access their pension details and request transactions. Schemes can link the app to their employer staff portals and use it to give members access to extra services, such as wellbeing tools. Unu has been tested with a small group of schemes and is being made available to others throughout 2020.

Manage Your Account (MYA) has been improvedLegal & General have updated the technical systems used to run MYA so that it will work better for members. Many were given access to the new version of the portal and asked to give feedback. All members should move to the new version of MYA in 2020, with more improvements planned throughout the year.

At the end of 2019, 26% of Workplace members had registered on MYA – and this figure is much higher for clients who are using single sign on. Of those who’ve registered, 16% access the online services once every 3 months – up 32% from last year. Over 75% of transactions – including switch and redirect, transfers, changing retirement ages, and nominating beneficiaries – are completed online.

Legal & General have invested in better security features that use biometrics (i.e. fingerprint access through mobile devices) and one-time passwords (OTP). An OTP is a

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password that works only for a single login session. This lowers the risk of members’ passwords being intercepted. A bigger proportion of pension documents are now available online through MYA’s document library. Email prompts are sent to let members know when a new document is available. Legal & General continue to encourage members and clients to provide email addresses and now have the addresses of 46% of members. As people become more aware of the environmental benefits of cutting down on paper, we expect this figure to grow.

The ESG hub has been launchedEnvironmental, Social & Governance (ESG) concerns are key to Legal & General’s investment decisions. Members have the option to invest in ESG-designated funds, and Legal & General uses pension money to support inner-city regeneration, affordable housing projects and windfarm construction.

Legal & General have now launched an ESG hub. This is a central source of information for members on how their money is being invested to tackle some of society’s most pressing problems.

The Wellbeing Portal has been developed and extendedThe Wellbeing Portal is a free-to-access source of information that employers can choose to offer their members. It includes tools and news articles that aim to help members take control of their money. One year after it was launched, the Wellbeing Portal has won the award for Best Wellbeing Initiative at the Workplace Savings & Benefits Awards.

Legal & General have worked with the Government’s Money and Pensions Service to offer their tools on their platform. These sit alongside other useful information on debt management, mortgages and more. Members can get guidance on daily budgeting, how to prepare for unexpected expenses while maintaining a regular

disposable income, and how to plan for future milestones such as buying a house and having a family.The insights members gain help them better understand their attitudes to money and make good financial decisions.

Legal & General continue to invest in the hub, creating new content to support members in the challenges of everyday life.

Rollout of video statements continuesVideo benefits statements are being rolled out to more and more members as their employers sign up to make them available. These personalised statements tell members about their likely future retirement income based on their current contribution rate in a brief and engaging way. 40% of emails were opened. Of these, 99% of videos were watched to the end. 69% of those members then clicked through to the site. A new, interactive version is being developed that will help members understand the likely outcomes of their current rate of saving and allow them to make changes with a click.

New “wake up” packs have been launchedLegal & General send members “life prompt” letters at age 50 and 4 years before their selected retirement dates. Following the FCA’s Retirement Outcome Review, Legal & General have revised the communications sent to members approaching retirement. As well as the life prompt letters, a new “wake up” pack will be sent to all members from the age of 50 and every 5 years after that.

We reviewed and refreshed our websiteThe IGC has changed the visual style of our communications, the photography we use and our tone of voice. Our new look is designed to be cleaner and more modern. Visit the site at legalandgeneral.com/workplace/igc

We’ve also changed the way that information on our website is organised. We’ve moved all the content to a new management system. This should give users a better experience and make information easier for them to find.

http://www.legalandgeneral.com/workplace/esg

http://www.legalandgeneral.com/workplace/igc


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Accessing your pension - Workplace

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Why accessing your pension is importantSince the government changed the way people could take their pensions in 2015, it’s become more important than ever to help members easily access the full range of options now available to them. It’s also vital that they have access to tools, information and advice that will help them make good decisions.

Why we gave this scoreWe think that the range and quality of the ways in which Legal & General helps members access their pension is very good – and continues to improve. We gave the same score as last year because the market continues to develop in this area. As with Member Engagement, a company has to move forwards to maintain its position relative to the market.

How Legal & General and the IGC have worked together to improve the ways you can access your pensionThe IGC regularly meet with Legal & General to review the process members go through when they want to start taking their money.

Accessing your pension

1 2 3 4 5 6



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What happened in 2019The ‘Four Pots’ initiative is in development following new regulationsIn last year’s report, we talked about how we were encouraging Legal & General to help members make better plans for using the money they’ve built up. This initiative would encourage members to think about their money in four pots:

1. Money for the early years after they’ve stopped work or gone part-time

2. Income or lump sums for holidays and unexpected expenses

3. Income for their later lives (including for long-term care, if needed)

4. Any money they want to leave to loved ones

Now, Legal & General have adapted their initiative in response to FCA regulation. The FCA supports an initiative that looks closely aligned to Legal & General’s previous work, and requires that five-year horizons are included under the following headings:

• I plan to start taking a long-term income within the next 5 years

• I plan to set up a guaranteed income (annuity) within the next 5 years

• I have no plans to touch my money in the next 5 years

• I plan to take my money within the next 5 years

Legal & General took feedback from a group of 30 members and have worked to create a solution that joins up with the FCA’s regulations. They’ve decided which investments should sit behind each of the different journeys as default strategies to support members moving from building their pension fund to using it.

In 2020, they’ll start creating graphic online tools to explain each journey and each stage clearly to members. Legal & General and the IGC will also look at how to connect the initiative with customer research and other projects in development to do with how members take their money. Legal & General will start to roll out the new pathways in the summer and the online experience in the second half of 2020. The IGC will continue to monitor the progress of the initiative to make sure it continues to help members plan for how they use their money. The IGC will also make sure that the investment pathways are fit for purpose and provide good value for members.

Members will no longer need a minimum amount of money in their pension to use drawdownIn last year’s report, we talked about the steps that Legal & General are taking to improve the experience of members who want to take their money in stages (known as “drawdown”). After discussions with the IGC, Legal & General have now agreed to make income drawdown available to all members, not just those with more than £30,000 in their pension. On top of this, Legal and General are removing the existing £250 charge when members set up regular income payments (through what is known as “flexi-access drawdown”). They have also removed the current £20 fee for making more than one occasional withdrawal in a year.

The next phase of enhancements to Manage Your Money also centres around drawdown. From early 2020, members will be able to apply online to take their money this way.

Members will soon be able to manage withdrawals from their pension accounts onlineThe IGC has been discussing a new online process that will allow members to manage their retirement benefits through Legal & General’s secure site, Manage Your Account, rather than through the existing postal process. Members will be able to use the new process as soon as they get their maturity pack and should be able to complete it online in less than 10 minutes. In particular, Manage Your Account includes new features that will make the process of taking a full lump sum more efficient. The new features include:

• A tool to help members understand how much tax they’ll pay on any lump sum they take

• Risk warnings that are easier for members to understand than the current ones

• Real-time identity and bank account validation, so that members won’t have to send in copies of their bank statements

As long as members pass the system’s identity checks, the new process means money will be in their account five working days after they ask for it.

While these improvements benefit members, Legal & General also want to make sure members are aware of pension scams – especially as their money can now be transferred so quickly. We’ve included more details about how they help to protect members from pension scams below.

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Protecting members from pension scamsWe’ve encouraged Legal & General to signal clearly to members how they can protect themselves from scams – particularly when they’re thinking of transferring money out of their pension into a different scheme.

We also ask Legal & General to do everything they can to spot scams and stop them in their tracks. With each transfer, they send a warning notice relating to pension scams prepared by the Pensions Regulator. If a member asks to transfer to an unregistered scheme, they send extra information and highlight specific concerns so the member knows what to look out for.

Legal & General always follows the pension industry’s Code of Good Practice. This means they:

- Check that a scheme a member wants to transfer money into is registered with The Pensions Regulator and HMRC

- Check that schemes are registered with the FCA

- Complete politically exposed person (PEP) and sanction scans for small self-administered schemes

- Ask for extra documents, including scheme bank account statements, plus trust deeds and rules

- Get proof of employment status for occupational schemes

- Check that the member has had financial advice

If Legal & General get a request to transfer to a scheme and they can’t complete the necessary checks, and HMRC can’t confirm the scheme is registered with them, then Legal & General would refuse to pay the transfer.

Protect yourself from pension scamsPension scams can be hard to spot. Be ultra-vigilant and always think twice if anyone:

• Offers you free pension review• Guarantees to get you a higher return on your

pension savings• Offers to help you access your pension before

you’re 55• Tells you an offer is time-limited• Offers you an unregulated, high-risk investment, or

one that involves several parties who are all taking a fee

For more advice on protecting your money, please visit the FCA’s website:fca.org.uk/scamsmart/how-avoid-pension-scams

PensionWise: pensionwise.gov.uk/en/scams

http://www.fca.org.uk/scamsmart/how-avoid-pension-scams

http://www.pensionwise.gov.uk/en/scams


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Mature Savings

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Investment returns - 5

1 2 3 4 5 6


Default strategies and Investment choice - 4

1 2 3 4 5 6


Member service and administration - 4

1 2 3 4 5 6

Weighting: 20%2019 Score: 3.5

Costs and charges - 4

1 2 3 4 5 6


Member engagement - 4

1 2 3 4 5 6


Accessing your pension - 3

1 2 3 4 5 6


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Why we gave this overall scoreWe’ve been impressed by how Legal & General has managed staff retention and morale throughout the transfer of the Mature Savings business to ReAssure. We’ve also seen an improvement in service standards, reflected in the improved score for Member Service and Administration.

Because of the impending transfer, we didn’t expect any significant new initiatives, but we have stayed focused on the experience of Mature Savings members and on monitoring the risks associated with a significant transfer of this kind.

What happened in 2019Member service standards were closely monitored and have improved:

• 90% of administrative processes were completed within the 5 day target. As we asked, Legal & General introduced extra checks on cases where members had to wait longer than 5 days to understand the cause and share the reasons and action plans with us.

• 96% of phone calls were answered and the average time members spent on hold was 56 seconds.

• Member satisfaction scores improved from 90% to 93% over the year. Member service scores are discussed every two months at the IGC meeting.

Staffing levels and morale were regularly discussedThe IGC had been concerned that some of the service team supporting Mature Savings might leave after the transfer to ReAssure was announced. We looked closely at what Legal & General was doing to make sure service standards didn’t suffer. Overall, the turnover rate for permanent staff in 2019 was 12.5%. Legal & General kept staffing at an appropriate level by recruiting and training temporary staff before they were likely to be needed. Colleague engagement was also regularly monitored and was consistently above 70%.

Investment returns have remained very good

Fund Benchmark 1 year Performance



Fund Benchmark Fund Benchmark Fund Benchmark

Managed G6

ABI UK - Mixed Investment 40%-85% Shares

5.11% 4.54% 6.78% 6.04% 7.42% 6.74%

With Profits Gross

N/A 7.6% N/A 5.8% N/A 7.5% N/A

The table above shows the performance of two of the funds that have the most investors under the Group Personal Pension Plan No.1, as at 30 September 2019. The performance of the Managed fund is calculated after taking off fees. For the With Profits fund, it’s calculated before taking off fees.

1 2 3 4 5 6

Overall Score – 4.1Weighting – 100%

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The Mature Savings business is due to move to ReAssure in April 2020In our last report, we talked about Legal & General’s plan to sell the Mature Savings business and the Group Personal Pension Plan 2000 to ReAssure. For this sale to go ahead, the Court must legally approve the transfer of a business from one insurance company to another. This legal process is still ongoing. Originally, we expected the transfer to complete in 2019, but it’s been delayed. At the time of writing, it is due to complete in April 2020.

We’re still providing oversight and governance for Mature Savings members. Throughout the year, we concentrated on making sure the transfer of the business goes smoothly. We asked Legal & General to give us regular progress reports on the transfer. The Chief Executive Officer of Mature Savings came to one of the IGC meetings to answer questions about the transfer to ReAssure.

An independent expert analysed the impact of the transfer on membersLegal & General appointed an independent expert who was approved by the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA). The independent expert analysed and reported on the likely impact of the proposed transfer on members and concluded that it would have no material adverse effect on those transferring to ReAssure. You can find the reports at legalandgeneral.com/policytransfer

Legal & General shared its member communications strategy for the transfer with usIn July and August 2019, Legal & General sent a policy transfer pack to members affected by the transfer. They created this pack after extensive research with current members. It was reviewed by the independent expert and by the regulators before being sent to the High Court for the Directions Hearing.

Engagement with the RegulatorMature Savings has engaged with the regulators throughout 2019. The Sanctions hearing was held between the 10th & 12th of March and we are now awaiting the court judgment. The regulators did not object to the transfer.

Data security remains a top priorityMature Savings have confirmed that all data will be transferred from Legal & General to ReAssure in strict compliance with the group’s data protection and security policies. Data is being shared across a dedicated, securely encrypted network connection.

http://www.legalandgeneral.com/policytransfer


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Appendix 1: Meet your IGC

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Dermot Courtier, Independent ChairDermot became the Independent Chair of the Legal & General IGC in March 2017. He also acts as Independent Chair of the Legal & General WorkSave Mastertrust.

Dermot has a wealth of experience in the pensions sector. As well as being our Chair, he’s also Head of Group Pensions at Kingfisher plc and Secretary to Kingfisher Pension Trustee Limited. Since 2007, Dermot has had an executive role in the governance of the Kingfisher Pension Scheme (KPS) – including overseeing a high-impact initiative to reduce risk and enhance defined contribution (DC) benefit structures and investment funds. KPS has won numerous awards for this work, and for its pioneering financial education programme for DC members.

Dermot’s experience includes senior pension roles at Hachette Livre Group, Towers Perrin HR Services (now Willis Towers Watson) and Royal Mail Group. He’s also a past member of the Pensions and Lifetime Savings Association DC Council. He has an ongoing interest in local community and infrastructure, which is reflected in his past role as the Vice Chair of Curo Group, a social and affordable housing group in the Bath & Bristol area.

Dermot has a degree in Economics from the University of Bath and a MBA specialising in Industrial Relations from the University of Bradford Management Centre and he is passionate about team sports and is a rugby enthusiast. He holds a Bath Rugby Union season ticket and his local team sports club is Keynsham RFC Rugby Football Club Limited.

Joanne Segars OBE, Independent IGC member Joanne holds a number of non-executive, trustee and consultancy roles.

She joined the IGC in January 2019, the same year she became Chair of NOW: Pensions, one of the UK’s largest auto-enrolment pension providers. Joanne is also Chair of the Joint Expert Panel on the Universities Superannuation Scheme. In May 2017, she became the first Chair of LGPS Central Ltd, the asset manager for 9 Midlands-based local authority pension funds.

Currently a director of the Pensions Policy Institute, Joanne has held many other high-profile roles. These include Board memberships of the Environment Agency, PensionsEurope and the Pensions Infrastructure Platform. She’s also been Chair of these last two organisations, as well as an expert adviser to the CERN pension fund working group and Chief Executive of the Pensions and Lifetime Savings Association (formerly the NAPF). She joined that organisation from the Association of British Insurers where she was Head of Pensions and Savings.

As well as a degree in economics from John Moores University, Joanne has an MA in Industrial Relations from the University of Warwick. She was awarded an OBE for services to pensions in the 2003 Queen’s Birthday Honours.

Joanne is a keen traveller and photographer – especially documentary, street and portrait photography – and is currently taking a Higher National Certificate in photography.


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Daniel Godfrey, Independent IGC memberDaniel studied Economics at The University of Manchester and went on to become Marketing Director of Robert Fleming (now JP Morgan Asset Management).

He’s worked in various senior positions including Chairman of pfeg (Personal Finance Education Group), Director General of The Association of Investment Companies and Director of Corporate Communications at Phoenix Group Holdings Plc. He was Chief Executive of the Investment Association between 2012 and 2015, where he was responsible for a team that significantly grew the organisation’s voice in governance and stewardship.

Daniel is currently a Non-Executive Director of Digital Moneybox, a FinTech start-up. He’s also a Senior Adviser to Federated Hermes International and a Consultant to the Institute for Economics & Peace. Daniel is a Member of the Advisory Board of the IoD’s Centre for Corporate Governance and of the City of London’s Sustainable Development Capital Initiative.

He enjoys watching football, eating good food, and going to the theatre and cinema.

Rachel Brougham, Independent IGC memberRachel is a trustee executive at BESTrustees Limited. Rachel qualified as an actuary and has worked in the pensions industry since 1988.

Her experience includes advising both defined benefit (DB) and defined contribution (DC) trustee boards, and the governance committees of various contract-based DC arrangements. This experience has helped her build a detailed knowledge of the regulatory environment.

At her previous employer, the global consultant Mercer, Rachel led a number of national initiatives including pension fund governance (both DB and DC) and pensions automatic enrolment.

Since she joined BESTrustees in 2014, Rachel has held appointments on two master trust boards and two independent governance committees and has had a particular focus on member engagement. She also works with a number of DB schemes.

Away from pensions, music is a big part of Rachel’s life. She sings with a North West based choral society that has performed in St Paul’s Cathedral, and with Lesley Garrett and Russell Watson. For 15 years, Rachel was a chair of school governors at two local primary schools. She also enjoys walking and baking.

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Ali Toutounchi, IGC memberAli has over 30 years of experience in investments. He was formerly Managing Director of Legal & General Investment Management’s (LGIM) Global Index Funds, overseeing the management of over £275 billion of assets on behalf of pension funds, institutional and retail investors. In this role, he was also closely involved with a number of large UK corporate and public pension fund schemes.

Ali joined Legal & General in 1995 from NatWest Securities. He’s held senior roles at UBS Asset Management and Wood Mackenzie Stockbrokers. He has a first-class honours degree in economics and statistics from University College, London, and a PhD in actuarial mathematics from Heriot-Watt University, Edinburgh.

Ali’s diverse and extensive experience of investment, trade execution and working with pension fund clients is of great value to the IGC.

Ali is a founding trustee of a newly established charity that aims to make sure all young adults with learning disabilities have a choice in where and how they want to live.

Despite years of disappointment and heartbreak, Ali remains an Arsenal supporter.

Steve Carrodus, Independent IGC memberSteve is a Client Director with PTL Governance Ltd.

He has over 40 years’ experience dealing with employers and trustees in connection with workplace pensions. After 1988 this included advising employers on contract-based pension arrangements.

Through his professional trustee role, Steve has extensive experience of governance responsibility relating to pensions and has recent experience with DC master trusts and one other IGC.

Steve sings in a local choir that performs regularly for charity. He also chairs a local charity that helps children with disabilities.


42

Andrew Fairhurst, Secretary to the IGCAndrew worked on the launch of the IGC and has been Secretary to the IGC since it began. He makes sure it operates efficiently and effectively to the highest governance standards, and that it fully embraces its position at the forefront of changing governance practice.

Andrew reports to the independent Chair of the IGC and also has an independent non-operational reporting line to the Group General Counsel.

Andrew has held a number of senior company secretarial roles within Legal & General Group and is Head of the Company Secretariat. He is a Fellow of the Institute of Chartered Secretaries, and a member of the ICSA’s Company Secretaries forum.

Gaby Renault, Assistant Secretary to the IGCGaby has provided company secretarial support to the IGC since 2019. She supports Andrew Fairhurst in making sure the IGC fulfils its role in looking after members’ interests.

Gaby joined Legal & General in 2019 as an Assistant Company Secretary, having completed a number of company secretarial secondments at Eversheds Sutherland. Gaby has a degree in Law with Sociology LLB from Cardiff University and is due to complete the Chartered Governance Qualifying Programme with the Institute of Chartered Secretaries and Administrators (ICSA) this year.

Kim Brown, Pension Scheme DirectorKim joined Legal & General as Pension Scheme Director in February 2020 and reports to the Independent Chair of the IGC. Before that, she worked for the Pensions Regulator for 12 years in a number of roles. Most recently, Kim was responsible for both the design and delivery of master trust authorisation and supervision. Her extensive experience in DC pensions will be of great help to the IGC in delivering value for members and in making sure governance is of the highest standard. Kim heads up a dedicated IGC support team that includes Tessa Watson and Sarah Pengilley.

In her spare time, Kim enjoys playing netball with a very amateur but determined local side. Living in Brighton, she enjoys the outdoor life, both in her garden and by the pebbly seaside.

Support team for the IGC

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Sarah Pengilley, Pension Scheme ManagerSarah joined Legal & General as the IGC’s Pension Scheme Manager in January 2020. Sarah reports to the Independent Chair of the IGC and to Kim Brown, Pension Scheme Director. She brings wide-ranging industry experience having held previous pensions roles at Sainsbury’s, Barclays and the Post Office.

Sarah holds a BA (Hons) degree in History from Cardiff University. In her spare time, she likes going to gigs and festivals.

Tessa Watson, Pension Scheme ManagerTessa joined Legal & General in September 2018 as Pension Scheme Manager to the IGC. She reports to the Independent Chair of the IGC and to Kim Brown, the Pension Scheme Manager.

Before joining Legal & General, Tessa worked for nine years at Rothschild & Co, most recently as the Assistant Pensions Manager for their workplace pension scheme.

Tessa studied Economics at the University of Sheffield and holds a Diploma in Retirement Provision from the Pensions Management Institute. In her spare time, she enjoys long walks in the country with her dog, Harry.


44

Appendix 2: Fund costs and performance

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45

There are a number of different fund generations. The different generations of funds reflect a different pricing series but invest in the same underlying funds. Members can match the exact fund name against the funds available under their scheme.

All performance data is as at 30th September 2019 unless otherwise stated.

The fund charges are shown as at January 2020 in order to take into consideration the most up to date additional expense figures. The annual fund charge shown includes the investment management charges and any additional expenses.

The benchmark performance is shown gross, before the deduction of charges and fees.

Implicit transaction costs have been calculated as the difference between the price at which a deal was struck and the price of the instrument at previous market close. This is consistent with the implicit cost calculation methods allowed under PRIIPS. Indirect transaction costs have been calculated assuming a static fund structure as at 30 September 2019.

Important: Past performance is not a guide to future returns. The value of an investment and any income taken from it is not guaranteed and may go up and down. Investors could get back less than they invest.


46

Generation 3 Funds for Workplace Pension Plan

Fund name

Active (A)

Passive (P)

1 Year Performance

3 Year Annualised Performance


Maximum Scheme Annual

Management Charge

Annual Fund

Charge

Transaction Costs

Fund Benchmark Fund Benchmark Fund BenchmarkImplicit Costs

Explicit Costs

Total Costs

Legal & General Default Funds

L&G PMC Cash 3 A 0.7% 0.0% 0.5% -0.2% 0.5% -0.2% 0.37% 0.09% -0.03% 0.00% -0.03%

L&G PMC Multi-Asset 3 A 9.8% 3.7% 7.1% 5.7% 8.9% 6.6% 0.37% 0.13% 0.02% 0.01% 0.03%

L&G PMC Over 15 Year Gilts Index 3 P 22.2% 22.3% 4.6% 4.6% 10.3% 10.4% 0.37% 0.08% -0.26% 0.00% -0.26%

Legal & General Self Select Funds

L&G PMC 2015 - 2020 Pathway Fund 3 A 5.5% 3.7% n/a n/a n/a n/a 0.37% 0.15% 0.00% 0.02% 0.01%











L&G PMC AAA-AA Fixed Int O15 Yr Target Duration 3 P 19.9% 20.1% 4.6% 4.3% 9.4% 9.0% 0.37% 0.12% -0.05% 0.00% -0.05%

L&G PMC AAA-AA Fxd Int All Stks Target Duration 3 P 13.7% 8.4% 3.3% 2.7% 6.3% 4.5% 0.37% 0.12% 0.00% 0.00% 0.00%

L&G PMC AAA-AA-A Corp Bond All Stocks Index 3 P 10.1% 9.6% 2.7% 2.6% 5.6% 5.4% 0.37% 0.12% -0.03% 0.00% -0.03%

L&G PMC AAA-AA-A Corp Bond Over 15 Yr Index 3 P 20.3% 19.4% 3.9% 4.3% 8.7% 9.0% 0.37% 0.12% 0.01% 0.00% 0.01%

L&G PMC All Stocks Gilts Index 3 P 12.9% 13.0% 2.8% 2.8% 6.0% 6.1% 0.37% 0.08% 0.05% 0.00% 0.05%

L&G PMC All Stocks Index Linked Gilts Index 3 P 19.3% 18.8% 4.2% 4.0% 9.6% 9.7% 0.37% 0.08% 0.07% 0.00% 0.07%

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47

Fund name

Active (A)

Passive (P)

1 Year Performance




Management Charge

Annual Fund

Charge

Transaction Costs


Explicit Costs

Total Costs

L&G PMC Artemis Income 3 A 5.4% 2.7% 7.0% 6.8% 6.9% 6.8% 0.37% 0.75% 0.11% 0.10% 0.21%

L&G PMC Asia Pacific (ExJap) Dev Equity Index 3 P 4.2% 3.9% 7.6% 8.0% 9.5% 9.5% 0.37% 0.14% -0.02% 0.04% 0.02%

L&G PMC Asia Pacific Ex Jap Equity Index 3 P 3.6% 3.9% 8.3% 8.7% 9.8% 9.8% 0.37% 0.14% -0.03% 0.04% 0.01%

L&G PMC Asian Income Fund 3 A 5.9% 4.1% 6.5% 8.2% 7.2% 10.0% 0.37% 0.85% -0.06% 0.06% 0.00%

L&G PMC BMO Responsible Global Equity Fund 3

A 6.3% 7.8% 13.0% 12.2% 14.5% 13.2% 0.37% 0.75% 0.00% 0.13% 0.13%

L&G PMC BMO Responsible UK Income Fund 3

A 3.9% 2.7% 5.8% 6.8% 7.0% 6.8% 0.37% 0.75% 0.00% 0.17% 0.17%

L&G PMC Consensus Index 3 P 6.5% 3.7% 7.6% 5.7% 8.7% 6.6% 0.37% 0.11% -0.01% 0.01% 0.00%

L&G PMC Distribution 3 A 5.0% 3.6% 5.4% 3.6% 6.5% 4.6% 0.37% 0.37% 0.07% 0.04% 0.11%

L&G PMC Diversified 3 A 9.1% 4.4% 7.2% 11.6% 8.8% 10.8% 0.37% 0.28% -0.07% 0.03% -0.04%

L&G PMC Dynamic Bond 3 A 6.1% 5.6% 1.3% 3.0% 1.0% 3.4% 0.37% 0.63% 0.61% 0.04% 0.65%

L&G PMC Dynamic Diversified Fund 3 A 8.6% 5.3% 6.7% 5.0% 7.3% 5.0% 0.37% 0.52% 0.12% 0.04% 0.15%

L&G PMC Equity 3 A -0.7% 2.7% 6.5% 7.0% 6.2% 6.7% 0.37% 0.22% 0.03% 0.06% 0.09%

L&G PMC Ethical Global Equity Index 3 P 9.1% 9.3% 13.0% 13.5% 13.3% 13.6% 0.37% 0.30% -0.02% 0.03% 0.01%

L&G PMC Ethical UK Equity Index 3 P 5.0% 5.8% 7.9% 8.1% 7.1% 7.3% 0.37% 0.20% 0.01% 0.01% 0.02%

L&G PMC Europe (Ex-UK) Equity Index 3 P 5.9% 6.1% 9.9% 10.5% 9.8% 9.8% 0.37% 0.12% -0.01% 0.01% 0.01%

L&G PMC European 3 A -7.6% 6.4% 5.4% 10.0% 6.9% 9.8% 0.37% 0.31% 0.00% 0.08% 0.08%

L&G PMC Far Eastern 3 A 2.9% 3.6% 8.4% 8.2% 10.2% 10.2% 0.37% 0.31% -0.03% 0.04% 0.01%

L&G PMC Fixed Interest 3 A 14.1% 13.0% 3.1% 2.8% 6.2% 6.1% 0.37% 0.09% 0.11% 0.02% 0.13%

L&G PMC Future World Fund 3 P 8.6% 8.7% n/a n/a n/a n/a 0.37% 0.24% 0.04% 0.04% 0.08%

L&G PMC Global Eqty Fixed Weights 50:50 Index 3

P 4.1% 4.5% 9.2% 9.3% 9.6% 9.7% 0.37% 0.10% -0.02% 0.01% 0.00%

L&G PMC Global Eqty Fixed Weights 60:40 Index 3

P 3.7% 4.2% 8.5% 8.9% 9.2% 9.1% 0.37% 0.10% -0.02% 0.01% 0.00%

L&G PMC Global Equity 70:30 Index 3 P 4.5% 4.3% 8.6% 8.7% 8.8% 8.7% 0.37% 0.10% -0.02% 0.01% -0.01%

L&G PMC Global Equity Market Weights 30:70 Index 3

P 2.7% 3.1% 9.4% 9.9% 8.7% 8.7% 0.37% 0.14% 0.03% 0.01% 0.04%


48

Fund name

Active (A)

Passive (P)

1 Year Performance




Management Charge

Annual Fund

Charge

Transaction Costs


Explicit Costs

Total Costs

L&G PMC Global FW 50:50 Idx GBP Currency Hedged 3

P 1.6% 2.0% 8.3% 8.7% 7.0% 7.2% 0.37% 0.15% 0.00% 0.02% 0.02%

L&G PMC Global Real Estate Equity Index 3 P n/a n/a n/a n/a n/a n/a 0.37% 0.19% 0.03% 0.02% 0.05%

L&G PMC Growth 3 A -2.1% 2.7% 6.6% 6.8% 9.8% 6.8% 0.37% 0.75% 0.72% 0.21% 0.92%

L&G PMC Henderson Diversified Alternatives 3 A n/a n/a n/a n/a n/a n/a 0.37% 0.74% 0.00% 0.35% 0.35%

L&G PMC High Income 3 A 3.2% 1.3% 4.3% 1.0% 4.7% 1.1% 0.37% 0.31% 0.72% 0.01% 0.73%

L&G PMC HSBC Islamic Global Equity Index Fund 3 P 12.0% 12.1% 14.4% 14.5% 14.1% 15.4% 0.37% 0.35% 0.00% 0.13% 0.13%

L&G PMC Index-Linked Gilt 3 A 20.4% 20.7% 4.5% 4.3% 10.5% 10.7% 0.37% 0.09% 0.00% 0.01% 0.02%

L&G PMC International 3 A 7.3% 5.2% 11.0% 9.8% 11.4% 10.7% 0.37% 0.33% -0.01% 0.03% 0.02%

L&G PMC Janus Henderson Preference & Bond Fund 3

A 10.8% 5.6% 5.2% 3.0% 5.7% 3.4% 0.37% 0.65% 0.00% 0.30% 0.30%

L&G PMC Japan Equity Index 3 P 0.4% 0.5% 8.0% 8.4% 12.0% 12.2% 0.37% 0.12% -0.02% 0.01% -0.01%

L&G PMC Kames Ethical Equity 3 A -5.0% 2.7% 2.4% 6.8% 5.2% 6.8% 0.37% 0.55% 0.00% 0.24% 0.24%

L&G PMC Kames High Yield Bond 3 A n/a 4.4% n/a 3.8% n/a 4.5% 0.37% 0.59% 0.00% 0.44% 0.44%

L&G PMC Kames Strategic Bond 3 A n/a n/a n/a n/a n/a n/a 0.37% 0.60% 0.00% 0.68% 0.68%

L&G PMC Lazard Emerging Markets 3 A n/a n/a n/a n/a n/a n/a 0.37% 0.98% 0.00% 0.07% 0.07%

L&G PMC M&G PP All Stocks Corporate Bond 3 A n/a n/a n/a n/a n/a n/a 0.37% 0.36% 0.00% -0.05% -0.05%

L&G PMC Majedie UK Equity 3 A n/a n/a n/a n/a n/a n/a 0.37% 0.72% 0.00% 0.07% 0.07%

L&G PMC Managed 3 A 6.2% 3.7% 7.4% 5.7% 8.0% 6.6% 0.37% 0.18% 0.03% 0.03% 0.06%

L&G PMC MFS Meridian Global Equity 3 A n/a n/a n/a n/a n/a n/a 0.37% 0.71% 0.00% 0.04% 0.04%

L&G PMC Newton Global Income 3 A 14.3% 7.9% 10.4% 12.5% 13.8% 13.5% 0.37% 0.85% 0.00% 0.03% 0.03%

L&G PMC Newton Real Return Fund 3 A 8.6% 4.8% 2.3% 4.5% 3.5% 4.5% 0.37% 0.85% 0.00% 0.08% 0.08%

L&G PMC North America Equity Index 3 P 9.9% 10.0% 15.2% 15.2% 16.3% 16.2% 0.37% 0.12% -0.01% 0.00% -0.01%

L&G PMC North American 3 A 17.1% 7.8% 15.9% 13.6% 17.6% 14.6% 0.37% 0.31% 0.01% 0.00% 0.01%

L&G PMC Over 5 Year Index Linked Gilts Index 3 P 21.3% 20.7% 4.5% 4.3% 10.7% 10.7% 0.37% 0.08% 0.07% 0.00% 0.07%

L&G PMC Overseas Bond Index 3 P 15.2% 15.4% 3.0% 3.0% 7.9% 8.0% 0.37% 0.15% 0.00% 0.00% 0.00%

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49

Fund name

Active (A)

Passive (P)

1 Year Performance




Management Charge

Annual Fund

Charge

Transaction Costs


Explicit Costs

Total Costs

L&G PMC Overseas Equity Consensus Index 3 P 7.8% 7.8% 12.5% 12.6% 13.1% 13.1% 0.37% 0.14% -0.01% 0.01% 0.00%

L&G PMC Pre-Retirement 3 P 15.9% 15.2% 3.5% 3.6% 7.7% 7.8% 0.37% 0.12% 0.00% 0.00% 0.00%

L&G PMC Pre-Retirement Inflation Linked Fund 3 P 17.6% 17.4% 4.2% 4.1% 8.8% 8.9% 0.37% 0.13% 0.02% 0.00% 0.02%

L&G PMC Pre-Retirement Inflation Sensitive 3 P 15.0% 14.7% 3.6% 3.7% n/a n/a 0.37% 0.12% 0.16% 0.00% 0.16%

L&G PMC Property 3 A 1.0% 0.5% 6.3% 5.0% 7.0% 4.9% 0.37% 0.91% -0.56% 0.01% -0.55%

L&G PMC Real Income Builder 3 A 4.3% 6.1% 5.7% 6.2% n/a n/a 0.37% 0.55% 0.20% 0.13% 0.32%

L&G PMC Retirement Income Multi-Asset 3 A 7.5% 4.2% 5.6% 4.0% n/a n/a 0.37% 0.31% -0.05% 0.04% -0.01%

L&G PMC Standard Life Global Abs Return Strat 3 A 4.5% 6.0% 1.3% 5.7% 1.4% 5.7% 0.37% 0.76% 0.00% 0.31% 0.31%

L&G PMC Sterling Liquidity 3 A 0.7% 0.6% 0.7% 0.4% n/a n/a 0.37% 0.11% -0.02% 0.00% -0.02%

L&G PMC Stewart Investors Asia Pacific Leaders 3

A 5.2% 4.0% 7.3% 8.4% 10.0% 9.9% 0.37% 0.83% 0.00% 0.16% 0.16%

L&G PMC Stewart Investors Glbl Emrg Mkt Ldrs 3

A 0.3% 3.7% 3.0% 7.8% 5.9% 8.1% 0.37% 0.84% 0.00% 0.23% 0.23%

L&G PMC Threadneedle Global Select 3 A 12.1% 7.3% 14.2% 11.7% 15.2% 12.7% 0.37% 0.51% 0.00% 0.29% 0.29%

L&G PMC Threadneedle Managed Equity 3 A 5.6% 7.9% 7.8% 12.5% 9.0% 13.5% 0.37% 0.55% 0.00% 0.24% 0.24%

L&G PMC UK Alpha 3 A -25.5% 2.7% -6.2% 6.8% -3.8% 6.8% 0.37% 0.73% 1.60% 0.06% 1.66%

L&G PMC UK Equity 5% Capped Passive 3 P 2.6% 3.4% 6.6% 7.0% 6.8% 6.9% 0.37% 0.10% 0.00% 0.02% 0.01%

L&G PMC UK Equity Index 3 P 2.2% 2.7% 6.8% 7.0% 6.8% 6.7% 0.37% 0.10% -0.03% 0.01% -0.02%

L&G PMC UK Recovery 3 A -7.4% 2.7% 1.2% 6.8% 6.7% 6.8% 0.37% 0.24% 0.67% 0.24% 0.91%

L&G PMC UK Smaller Companies 3 A -5.2% -4.1% 4.2% 5.3% 5.5% 6.9% 0.37% 0.25% 0.59% 0.02% 0.61%

L&G PMC UK Smaller Companies Index 3 P n/a n/a n/a n/a n/a n/a 0.37% 0.17% -0.16% 0.13% -0.03%

L&G PMC World (Ex-UK) Equity Index 3 P 8.5% 8.0% 12.8% 12.9% 13.9% 13.8% 0.37% 0.12% -0.01% 0.01% 0.00%

L&G PMC World Emerging Markets Equity Index 3 P 7.1% 7.1% 7.8% 8.1% 8.1% 8.4% 0.37% 0.25% -0.01% 0.03% 0.02%

The fund performance is calculated after all fund charges but other product charges such as the annual management charges are not included.

The Pathway Funds have received a reduction in Annual Fund Charge from 0.19% to 0.15% from January 2020 and this is reflected in the table.

n/a performance data is not available because the share class had not been in existence for the required amount of time


50

Generation 25 Funds for Workplace Pension Plan

Fund name

Active (A)

Passive (P)

1 Year Performance




Management Charge

Annual Fund

Charge

Transaction Costs


Explicit Costs

Total Costs


L&G PMC Cash Fund G25 A 0.6% 0.0% 0.4% -0.2% 0.4% -0.2% 0.27% 0.20% -0.03% 0.00% -0.03%

L&G PMC Multi-Asset G25 A 9.7% 3.7% 6.9% 5.7% 8.7% 6.6% 0.27% 0.23% 0.02% 0.01% 0.03%

L&G PMC Over 15 Year Gilts Index Fund G25 P 23.6% 22.3% 4.7% 4.6% 10.3% 10.4% 0.27% 0.20% -0.26% 0.00% -0.26%


L&G PMC 2015 - 2020 Pathway Fund G25 A 5.3% 3.7% n/a n/a n/a n/a 0.27% 0.25% 0.00% 0.02% 0.01%











L&G PMC UK Equity Index G25 P 0.7% 2.7% 6.2% 7.0% 6.4% 6.7% 0.27% 0.15% -0.03% 0.01% -0.02%

L&G PMC AAA-AA Fxd Int All Stk Target Duration G25

P 13.4% 8.5% 3.2% 2.8% 6.1% 4.5% 0.27% 0.20% 0.00% 0.00% 0.00%

L&G PMC AAA-AA Fxd Int O15 Yr Target Duration G25

P 19.4% 20.1% 4.3% 4.3% 9.2% 9.0% 0.27% 0.20% -0.05% 0.00% -0.05%

L&G PMC AAA-AA-A Corp Bond All Stocks Index G25 P 10.2% 9.6% 2.7% 2.6% 5.5% 5.4% 0.27% 0.20% -0.03% 0.00% -0.03%

L&G PMC AAA-AA-A Corp Bond Over 15 Year Index G25

P 22.1% 19.5% 4.4% 4.3% 8.9% 9.0% 0.27% 0.20% 0.01% 0.00% 0.01%

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51

Fund name

Active (A)

Passive (P)

1 Year Performance




Management Charge

Annual Fund

Charge

Transaction Costs


Explicit Costs

Total Costs

L&G PMC All Stocks Gilts Index Fund G25 P 13.6% 13.0% 2.8% 2.8% 5.9% 6.1% 0.27% 0.20% 0.05% 0.00% 0.05%

L&G PMC All Stocks Index-Linked Gilts Index G25

P 19.5% 18.8% 4.1% 4.0% 9.5% 9.7% 0.27% 0.20% 0.07% 0.00% 0.07%

L&G PMC Consensus Index Fund G25 P 6.1% 3.7% 7.2% 5.7% 8.5% 6.6% 0.27% 0.21% -0.01% 0.01% 0.00%

L&G PMC Europe (ex UK) Equity Index G25 P 3.8% 6.1% 9.4% 10.5% 9.5% 9.8% 0.27% 0.20% -0.01% 0.01% 0.01%

L&G PMC Fixed Interest Fund G25 A 14.0% 13.0% 3.0% 2.8% 6.1% 6.1% 0.27% 0.20% 0.11% 0.02% 0.13%

L&G PMC Global Equity 70:30 Index Fund G25 P 2.8% 4.3% 8.0% 8.7% 8.4% 8.7% 0.27% 0.20% -0.02% 0.01% -0.01%

L&G PMC Global Equity FW 50:50 Index Fund G25 P 3.2% 4.5% 8.6% 9.3% 9.2% 9.7% 0.27% 0.20% -0.02% 0.01% 0.00%

L&G PMC Global Equity FW 60:40 Index Fund G25 P 2.7% 4.2% 7.9% 8.9% 8.8% 9.1% 0.27% 0.20% -0.02% 0.01% 0.00%

L&G PMC Global Equity MW 30:70 Index G25 P 2.1% 3.1% 9.1% 9.9% 8.4% 8.7% 0.27% 0.20% 0.03% 0.01% 0.04%

L&G PMC High Income Fund G25 A 2.7% 0.7% 4.2% 0.5% 4.7% 0.5% 0.27% 0.21% 0.38% 0.01% 0.39%

L&G PMC Index-Linked Gilt Fund G25 A 20.3% 20.7% 4.4% 4.3% 10.4% 10.7% 0.27% 0.20% 0.00% 0.01% 0.02%

L&G PMC Japan Equity Index G25 P 0.4% 0.5% 7.4% 8.4% 11.6% 12.2% 0.27% 0.20% -0.02% 0.01% -0.01%

L&G PMC North America Equity Index G25 P 11.0% 10.0% 15.2% 15.2% 16.3% 16.2% 0.27% 0.20% -0.01% 0.00% -0.01%

L&G PMC Over 5 Year Index Linked Gilts Index G25

P 21.5% 20.7% 4.5% 4.3% 10.7% 10.7% 0.27% 0.20% 0.07% 0.00% 0.07%

L&G PMC Overseas Bond Index Fund G25 P 16.0% 15.5% 3.1% 3.0% 7.9% 8.0% 0.27% 0.20% 0.00% 0.00% 0.00%

L&G PMC Overseas Equity Consensus Index Fund G25

P 7.9% 7.8% 12.3% 12.6% 13.0% 13.1% 0.27% 0.20% -0.01% 0.01% 0.00%

L&G PMC Pre-Retirement Fund G25 P 16.7% 15.2% 3.7% 3.6% 7.7% 7.8% 0.27% 0.20% 0.00% 0.00% 0.00%

L&G PMC Pre-Retirement Inflation Sensitive G25 P 14.9% 14.7% 3.5% 3.7% n/a n/a 0.27% 0.20% 0.01% 0.00% 0.01%

L&G PMC Sterling Liquidity G25 A 0.6% 0.6% 0.6% 0.4% n/a n/a 0.27% 0.21% -0.02% 0.00% -0.02%

L&G PMC UK Equity 5% Capped Passive Fund G25 P 1.1% 3.4% 6.0% 7.0% 6.4% 6.9% 0.27% 0.20% 0.01% 0.02% 0.02%

L&G PMC World (Ex-UK) Equity Index Fund G25 P 8.1% 8.0% 12.6% 12.9% 13.7% 13.8% 0.27% 0.20% -0.01% 0.01% 0.00%

L&G PMC Pre-Retirement Inflation Linked Fund G25 P 18.7% 17.4% 4.3% 4.1% 8.8% 8.9% 0.27% 0.23% 0.02% 0.00% 0.02%


52

Fund name

Active (A)

Passive (P)

1 Year Performance




Management Charge

Annual Fund

Charge

Transaction Costs


Explicit Costs

Total Costs

L&G PMC Asia Pacific ex Japan Dev Equity Index G25

P 3.1% 3.9% 7.3% 8.0% 9.2% 9.5% 0.27% 0.25% -0.02% 0.04% 0.02%

L&G PMC Asia Pacific ex Japan Equity Index G25 P 2.9% 3.9% 8.0% 8.7% 9.5% 9.8% 0.27% 0.25% -0.03% 0.04% 0.01%

L&G PMC Distribution Fund G25 A 5.0% 3.6% 5.4% 3.6% 6.6% 4.6% 0.27% 0.35% 0.02% 0.04% 0.05%

L&G PMC Equity Fund G25 A -0.7% 2.7% 6.4% 7.0% 6.1% 6.7% 0.27% 0.27% 0.03% 0.06% 0.09%

L&G PMC Ethical Global Equity Index Fund G25 P 9.1% 9.4% 12.9% 13.5% 13.3% 13.6% 0.27% 0.25% -0.02% 0.03% 0.01%

L&G PMC Ethical UK Equity Index Fund G25 P 4.4% 5.8% 7.6% 8.1% 6.9% 7.3% 0.27% 0.25% 0.01% 0.01% 0.02%

L&G PMC Global Emerging Markets Index Fund G25 P 2.9% 4.2% 7.1% n/a 8.2% n/a 0.27% 0.25% 0.01% 0.06% 0.07%

L&G PMC Global FW 50:50 Idx Fund GBP Hegded G25 P 0.2% 2.0% 7.8% 8.7% 6.7% 7.2% 0.27% 0.25% 0.01% 0.02% 0.02%

L&G PMC Managed Fund G25 A 6.1% 3.7% 7.3% 5.7% 7.9% 6.6% 0.27% 0.31% 0.03% 0.03% 0.06%

L&G PMC Property Fund G25 A 1.1% 0.5% 6.3% 5.0% 7.0% 4.9% 0.27% 0.86% -0.67% 0.01% -0.65%

L&G PMC UK Recovery Fund G25 A -7.8% 2.7% 1.1% 6.8% 6.6% 6.8% 0.27% 0.29% 0.16% 0.24% 0.40%

L&G PMC UK Smaller Companies Fund G25 A -5.8% -4.1% 3.9% 5.4% 5.3% 6.9% 0.27% 0.30% -0.02% 0.02% 0.00%

L&G PMC Future World Multi-Asset Fund G25 A n/a n/a n/a n/a n/a n/a 0.27% 0.26% 0.05% 0.02% 0.06%

L&G PMC UK Smaller Companies Index G25 P n/a n/a n/a n/a n/a n/a 0.27% 0.27% -0.16% 0.13% -0.03%

L&G PMC Global Real Estate Equity Index G25 P n/a n/a n/a n/a n/a n/a 0.27% 0.29% 0.03% 0.02% 0.05%

L&G PMC European Fund G25 A -7.6% 6.4% 5.4% 10.0% 6.9% 9.8% 0.27% 0.31% 0.00% 0.08% 0.08%

L&G PMC Far Eastern Fund G25 A 2.9% 3.6% 8.4% 8.2% 10.3% 10.2% 0.27% 0.31% -0.03% 0.04% 0.00%

L&G PMC International Fund G25 A 7.3% 5.2% 11.0% 9.8% 11.4% 10.7% 0.27% 0.33% -0.02% 0.03% 0.01%

L&G PMC North American Fund G25 A 17.1% 7.9% 15.9% 13.6% 17.6% 14.6% 0.27% 0.31% 0.00% 0.00% 0.00%

L&G PMC Future World Fund G25 P 8.5% 8.7% n/a n/a n/a n/a 0.27% 0.34% 0.04% 0.04% 0.08%

L&G PMC Diversified Fund G25 A 9.0% 4.4% 7.1% 11.6% 8.7% 10.8% 0.27% 0.38% -0.07% 0.03% 0.04%

L&G PMC Retirement Income Multi-Asset G25 A 7.4% 4.3% 5.6% 4.0% n/a n/a 0.27% 0.38% -0.04% 0.04% 0.00%

L&G PMC HSBC Islamic Global Equity Index Fund G25

P 11.9% 12.1% 14.0% 14.5% 14.6% 15.4% 0.27% 0.45% 0.00% 0.13% 0.13%

Annual Report 2020

53

Fund name

Active (A)

Passive (P)

1 Year Performance




Management Charge

Annual Fund

Charge

Transaction Costs


Explicit Costs

Total Costs

L&G PMC M&G PP All Stocks Corporate Bond G25

A n/a n/a n/a n/a n/a n/a 0.27% 0.46% 0.00% -0.05% -0.05%

L&G PMC Threadneedle Managed Equity G25 A 5.4% 7.9% 7.4% 12.5% 8.6% 13.5% 0.27% 0.65% 0.00% 0.24% 0.24%

L&G PMC Threadneedle Global Select G25 A 11.9% 7.3% 13.9% 11.7% 14.8% 12.7% 0.27% 0.61% 0.00% 0.29% 0.29%

L&G PMC World Emerging Markets Equity Index G25 P 5.6% 7.1% 7.1% 8.1% 7.7% 8.4% 0.27% 0.55% -0.01% 0.03% 0.02%

L&G PMC Dynamic Diversified Fund G25 A 8.5% 5.3% 6.6% 5.0% 7.2% 5.0% 0.27% 0.64% 0.12% 0.03% 0.15%

L&G PMC Kames Ethical Equity G25 A -5.2% 2.7% 1.9% 6.8% 4.6% 6.8% 0.27% 0.65% 0.00% 0.24% 0.24%

L&G PMC Henderson Diversified Alternatives G25

A n/a n/a n/a n/a n/a n/a 0.27% 0.84% 0.00% 0.35% 0.35%

L&G PMC Kames Ethical Corporate Bond G25 A 9.5% 10.9% 3.2% 3.6% 4.9% 6.0% 0.27% 0.69% 0.00% 0.17% 0.17%

L&G PMC Kames High Yield Bond G25 A 7.4% 4.4% 4.8% 3.8% 4.3% 4.5% 0.27% 0.69% 0.00% 0.44% 0.44%

L&G PMC Kames Strategic Bond G25 A 7.8% 8.7% 4.0% 2.2% 3.3% 3.3% 0.27% 0.70% 0.00% 0.68% 0.68%

L&G PMC Threadneedle Dynamic Real Return G25 A n/a n/a n/a n/a n/a n/a 0.27% 0.65% 0.00% 0.02% 0.02%

L&G PMC Janus Henderson Preference & Bond G25

A 10.7% 5.6% 4.9% 3.0% 5.4% 3.4% 0.27% 0.75% 0.00% 0.30% 0.30%

L&G PMC Dynamic Bond Fund G25 A 5.5% 5.6% 1.0% 3.0% 0.7% 3.4% 0.27% 0.78% 0.32% 0.04% 0.36%

L&G PMC MFS Meridian Global Equity G25 A n/a n/a n/a n/a n/a n/a 0.27% 0.81% 0.00% 0.04% 0.04%

L&G PMC Artemis Income G25 A 5.3% 2.7% 6.7% 6.8% 6.6% 6.8% 0.27% 0.85% 0.11% 0.10% 0.21%

L&G PMC BMO Responsible Global Equity Fund G25

A 6.2% 7.8% 12.6% 12.2% 14.0% 13.2% 0.27% 0.85% 0.00% 0.13% 0.13%

L&G PMC BMO Responsible UK Income Fund G25

A 3.8% 2.7% 5.5% 6.8% 6.7% 6.8% 0.27% 0.85% 0.00% 0.17% 0.17%

L&G PMC Majedie UK Equity G25 A n/a n/a n/a n/a n/a n/a 0.27% 0.82% 0.00% 0.07% 0.07%

L&G PMC Asian Income Fund G25 A 5.9% 4.1% 6.4% 8.2% 7.1% 10.0% 0.27% 0.95% -0.13% 0.06% -0.07%

L&G PMC Standard Life Global Abs Return Strat G25

A 4.2% 6.0% 0.9% 5.7% 0.4% 5.7% 0.27% 0.86% 0.00% 0.29% 0.29%

L&G PMC Newton Global Income G25 A 14.1% 7.9% 10.2% 12.5% 13.5% 13.5% 0.27% 0.95% 0.00% 0.03% 0.03%


54

Fund name

Active (A)

Passive (P)

1 Year Performance




Management Charge

Annual Fund

Charge

Transaction Costs


Explicit Costs

Total Costs

L&G PMC Newton Real Return G25 A 8.5% 4.8% 1.9% 4.5% 3.1% 4.5% 0.27% 0.95% 0.00% 0.08% 0.08%

L&G PMC Stewart Investors Asia Pacific Leaders G25

A 5.1% 4.0% 7.1% 8.4% 9.8% 9.9% 0.27% 0.93% 0.00% 0.16% 0.16%

L&G PMC Stewart Investors Glbl Emrg Mkt Ldrs G25

A 0.1% 3.7% 2.7% 7.9% 5.7% 8.1% 0.27% 0.94% 0.00% 0.23% 0.23%

L&G PMC Growth Fund G25 A -2.0% 2.7% 6.5% 6.8% 9.6% 6.8% 0.27% 1.00% 0.26% 0.21% 0.47%

L&G PMC UK Alpha Fund G25 A -26.8% 2.7% -6.9% 6.8% -4.3% 6.8% 0.27% 0.98% -0.14% 0.06% -0.08%

L&G PMC Lazard Emerging Markets G25 A 7.2% 3.7% 4.3% 7.9% 5.3% 8.1% 0.27% 1.08% 0.00% 0.07% 0.07%

The fund performance is calculated after all fund charges but other product charges such as the annual management charges are not included.

The Pathway Funds have received a reduction in Annual Fund Charge from 0.29% to 0.25% from January 2020 and this is reflected in the table.

n/a performance data is not available because the share class had not been in existence for the required amount of time.

Annual Report 2020

55

Generation 17 Funds for the Group Stakeholder Pension Scheme

Fund name

Active (A)

Passive (P)

1 Year Performance




Management Charge

Annual Fund

Charge

Transaction Costs


Explicit Costs

Total Costs



L&G PMC Cash Fund G17 A 0.8% 0.0% 0.6% -0.2% 0.6% -0.2% 0.50% 0.00% -0.03% 0.00% -0.03%

L&G PMC Fixed Interest Fund G17 A 14.3% 13.0% 3.3% 2.8% 6.3% 6.1% 0.50% 0.00% 0.11% 0.02% 0.13%

L&G PMC Over 15 Year Gilts Index Fund G17 P 22.2% 22.3% 4.6% 4.6% 10.4% 10.4% 0.50% 0.00% -0.21% 0.00% -0.21%

L&G PMC UK Equity Index G17 P 2.6% 2.7% 7.1% 7.0% 6.8% 6.7% 0.50% 0.00% -0.11% 0.01% -0.09%


L&G PMC Aberdeen Life Global (ex UK) Equity G17 A 10.3% 6.3% 10.8% 11.4% 9.9% 12.7% 0.50% 0.15% 0.00% 0.06% 0.06%

L&G PMC Aberdeen Life Multi-Asset G17 A 7.6% 4.1% 9.1% 7.2% 8.2% 7.6% 0.50% 0.15% 0.00% 0.13% 0.13%

L&G PMC Aberdeen Life UK Equity Fund G17 A 8.2% 2.7% 8.9% 6.8% 7.5% 6.8% 0.50% 0.15% 0.00% 0.23% 0.23%

L&G PMC Aberdeen Life UK Global 50:50 Equity G17

A 7.9% 4.5% 10.3% 9.1% 8.7% 9.8% 0.50% 0.15% 0.00% 0.20% 0.20%

L&G PMC Consensus Fund G17 A 8.1% 3.7% 8.3% 5.7% 9.0% 6.6% 0.50% 0.00% -0.03% 0.01% -0.02%

L&G PMC Distribution Fund G17 A 5.3% 3.6% 5.7% 3.6% 6.9% 4.6% 0.50% 0.00% 0.04% 0.04% 0.07%

L&G PMC Equity Fund G17 A -0.5% 2.7% 6.7% 7.0% 6.4% 6.7% 0.50% 0.00% 0.03% 0.06% 0.09%

L&G PMC Ethical Fund G17 A 4.8% 2.9% 6.5% 6.7% 6.5% 6.7% 0.50% 0.00% -0.04% 0.07% 0.03%

L&G PMC European Equity Index Fund G17 P 5.9% 6.4% 10.1% 10.0% 9.4% 9.8% 0.50% 0.00% -0.01% 0.02% 0.01%

L&G PMC European Fund G17 A -7.3% 6.4% 5.7% 10.0% 7.2% 9.8% 0.50% 0.00% -0.01% 0.08% 0.07%

L&G PMC Far Eastern Fund G17 A 3.2% 3.6% 8.8% 8.2% 10.6% 10.2% 0.50% 0.00% -0.04% 0.04% 0.00%

L&G PMC Global Equity 70:30 Index Fund G17 P 4.6% 4.3% 8.9% 8.7% 8.8% 8.7% 0.50% 0.00% -0.07% 0.01% -0.06%

L&G PMC Global Equity FW 50:50 Index G17 P 4.4% 4.5% 9.2% 9.3% 9.6% 9.7% 0.50% 0.00% -0.05% 0.01% -0.04%

L&G PMC Global Equity FW 60:40 Index G17 P 4.4% 4.2% 8.9% 8.9% 9.0% 9.1% 0.50% 0.00% -0.06% 0.01% -0.05%

L&G PMC Index Linked Gilt Fund G17 A 20.6% 20.7% 4.6% 4.3% 10.6% 10.7% 0.50% 0.00% 0.00% 0.01% 0.02%


56

Fund name

Active (A)

Passive (P)

1 Year Performance




Management Charge

Annual Fund

Charge

Transaction Costs


Explicit Costs

Total Costs

L&G PMC International Fund G17 A 7.6% 5.2% 11.3% 9.8% 11.7% 10.7% 0.50% 0.00% -0.02% 0.03% 0.01%

L&G PMC Japanese Equity Index Fund G17 P 0.7% 0.5% 8.2% 8.4% 11.9% 12.2% 0.50% 0.00% -0.10% 0.01% -0.09%

L&G PMC JPM Life Balanced Fund G17 A 2.9% 3.7% 8.3% 8.0% 8.8% 6.8% 0.50% 0.15% 0.00% 0.40% 0.40%

L&G PMC JPM Life Diversified Equity Fund G17

A 6.4% 7.3% 11.3% 11.7% 11.9% 12.7% 0.50% 0.15% 0.00% 0.67% 0.67%

L&G PMC Man GLG Continental European Growth G17

A -0.1% 6.4% 9.9% 10.0% 17.3% 9.8% 0.50% 0.15% 0.00% 0.34% 0.34%

L&G PMC Man Stockmarket Managed Fund G17

A 2.5% 4.8% 8.4% 5.5% 8.0% 4.6% 0.50% 0.15% 0.00% 0.57% 0.57%

L&G PMC Managed Fund G17 A 6.4% 3.7% 7.6% 5.7% 8.1% 6.6% 0.50% 0.00% 0.02% 0.03% 0.05%

L&G PMC BNY Mellon Global Equity Fund G17 A 8.5% 7.3% 11.2% 11.7% 13.3% 12.7% 0.50% 0.15% 0.00% 0.08% 0.08%

L&G PMC BNY Mellon UK Equity Fund G17 A 6.9% 2.7% 6.8% 6.8% 9.5% 6.8% 0.50% 0.15% 0.00% 0.06% 0.06%

L&G PMC BNY Mellon UK Income Fund G17 A 6.5% 2.7% 5.1% 6.8% 8.2% 6.8% 0.50% 0.15% 0.00% 0.17% 0.17%

L&G PMC North American Fund G17 A 17.4% 7.9% 16.3% 13.6% 18.0% 14.6% 0.50% 0.00% 0.00% 0.00% 0.01%

L&G PMC Property Fund G17 A 1.1% 0.5% 6.5% 5.0% 7.3% 4.9% 0.50% 0.00% -0.38% 0.01% -0.37%

L&G PMC UK Recovery Fund G17 A -7.5% 2.7% 1.5% 6.8% 6.9% 6.8% 0.50% 0.00% -0.08% 0.24% 0.16%

L&G PMC UK Smaller Companies Fund G17 A -5.5% -4.1% 4.2% 5.4% 5.7% 6.9% 0.50% 0.00% -0.04% 0.02% -0.02%

L&G PMC US Equity Index Fund G17 P 12.4% 10.2% 16.0% 15.4% 17.0% 17.0% 0.50% 0.00% -0.02% 0.01% -0.01%

Fund performance is calculated gross before the deduction of fund charges and other fees. Please note that not all funds may be available under your plan and fund charges may vary.

Annual Report 2020

57

Generation 17 Funds for the Group Personal Pension Scheme

Fund name

Active (A)

Passive (P)

1 Year Performance




Management Charge

Annual Fund

Charge

Transaction Costs


Explicit Costs

Total Costs



L&G Cash G17 A 0.8% 0.2% 0.6% 0.0% 0.6% 0.0% 0.50% 0.00% -0.03% 0.00% -0.03%

L&G Fixed Interest G17 A 13.2% 12.2% 2.9% 2.1% 6.1% 5.3% 0.50% 0.00% 0.00% 0.01% 0.01%

L&G Over 15 Year Gilts Index G17 P 22.3% 23.0% 4.6% 5.3% 10.4% 10.4% 0.50% 0.00% -0.03% 0.00% -0.03%

L&G UK Equity Index G17 P 2.7% 2.7% 7.1% 6.8% 6.8% 6.8% 0.50% 0.00% 0.00% 0.01% 0.01%


L&G Allianz Strategic Bond G17 A 18.2% 9.6% 4.9% 3.0% 5.8% 3.7% 0.50% 0.85% 0.00% 0.15% 0.15%

L&G ASI Life Global ex UK Equity G17 A 10.3% 6.3% 10.8% 11.4% 9.9% 12.7% 0.50% 0.15% 0.00% 0.06% 0.06%

L&G ASI Life Multi-Asset G17 A 7.8% 4.1% 9.2% 7.2% 8.2% 7.6% 0.50% 0.15% 0.00% 0.13% 0.13%

L&G ASI Life UK & Global (50/50) Equity G17 A 7.9% 4.5% 10.3% 9.1% 8.7% 9.8% 0.50% 0.15% 0.00% 0.20% 0.20%

L&G ASI Life UK Equity G17 A 8.2% 2.7% 8.9% 6.8% 7.5% 6.8% 0.50% 0.15% 0.00% 0.23% 0.23%

L&G Consensus G17 P 6.7% n/a 7.8% n/a 8.8% n/a 0.50% 0.00% -0.01% 0.01% 0.00%

L&G Distribution G17 A 4.4% 4.1% 5.4% 3.8% 6.7% 4.7% 0.50% 0.00% 0.19% 0.04% 0.23%

L&G Equity G17 A -1.1% -1.1% 6.5% 5.1% 6.3% 5.7% 0.50% 0.00% 0.07% 0.06% 0.12%

L&G Ethical G17 P 5.0% 2.9% 6.6% 6.8% 6.5% 6.8% 0.50% 0.00% -0.04% 0.07% 0.03%

L&G European G17 A -4.8% 2.0% 6.7% 8.1% 7.8% 9.3% 0.50% 0.00% 0.01% 0.06% 0.07%

L&G European Equity Index G17 P 5.7% 6.4% 10.1% 10.0% 9.4% 9.8% 0.50% 0.00% 0.00% 0.02% 0.01%

L&G Far Eastern G17 A 3.4% 3.1% 8.8% 8.1% 10.6% 10.1% 0.50% 0.00% -0.04% 0.05% 0.00%

L&G Global Equity 70:30 Index G17 P 4.2% 5.5% 8.7% 9.9% 8.7% 10.8% 0.50% 0.00% -0.01% 0.01% 0.00%

L&G Global Equity Fixed Weights 50:50 Index G17 P 4.0% 5.5% 9.1% 9.9% 9.5% 10.8% 0.50% 0.00% -0.02% 0.01% 0.00%

L&G Global Equity Fixed Weights 60:40 Index G17 P 4.1% 5.5% 8.8% 9.9% 8.9% 10.8% 0.50% 0.00% -0.01% 0.01% 0.01%

L&G Index Linked Gilt G17 A 20.1% 18.8% 4.5% 3.8% 10.5% 9.4% 0.50% 0.00% 0.00% 0.01% 0.01%

L&G International G17 A 5.4% 5.5% 10.6% 9.9% 11.3% 10.8% 0.50% 0.00% 0.00% 0.03% 0.02%

L&G Investec American G17 A 18.0% 9.7% 22.6% 14.7% 20.6% 16.4% 0.50% 0.85% 0.00% 0.05% 0.05%


58

Fund name

Active (A)

Passive (P)

1 Year Performance




Management Charge

Annual Fund

Charge

Transaction Costs


Explicit Costs

Total Costs

L&G Investec Cautious Managed G17 A 0.2% 4.7% 3.1% 5.4% 4.1% 4.6% 0.50% 0.75% 0.00% 0.07% 0.07%

L&G Investec Global Energy G17 A -5.3% -11.2% 1.2% 2.9% -4.0% 1.5% 0.50% 0.85% 0.00% 0.45% 0.45%

L&G Investec Global Strategic Equity G17 A 3.7% 7.9% 12.6% 12.3% 13.0% 13.3% 0.50% 0.95% 0.00% 0.10% 0.10%

L&G Janus Henderson European Growth G17 A 1.2% 6.4% 8.2% 10.0% 12.0% 9.8% 0.50% 1.00% 0.00% 0.11% 0.11%

L&G Janus Henderson Global Equity Income G17 A 5.3% 5.5% 9.0% 9.9% 11.2% 10.8% 0.50% 0.90% 0.00% 0.00% 0.00%

L&G Janus Henderson Sterling Bond G17 A 10.2% 9.0% 4.2% 3.2% 6.6% 5.1% 0.50% 0.75% -0.15% 0.08% -0.07%

L&G Janus Henderson UK Alpha G17 A -4.1% -1.1% 7.2% 5.1% 9.2% 5.7% 0.50% 1.10% 0.00% 0.19% 0.19%

L&G Japanese Equity Index G17 P 0.2% 0.3% 8.0% 8.4% 11.7% 12.2% 0.50% 0.00% -0.09% 0.02% -0.07%

L&G JPM Life Balanced G17 A 2.9% 2.9% 8.3% 6.7% 8.7% 7.6% 0.50% 0.15% 0.00% 0.40% 0.40%

L&G JPM Life Diversified Equity G17 A 6.4% n/a 11.3% n/a 11.9% n/a 0.50% 0.15% 0.00% 0.65% 0.65%

L&G Man GLG Continental European Growth G17 A -0.1% 6.4% 9.9% 10.0% 17.3% 9.8% 0.50% 0.15% 0.00% 0.34% 0.34%

L&G Man GLG Stockmarket Managed G17

A 2.2% 3.2% 8.3% 6.4% 7.9% 7.0% 0.50% 0.15% 0.00% 0.57% 0.57%

L&G Managed G17 A 5.6% 4.5% 7.3% 6.0% 8.0% 6.7% 0.50% 0.00% 0.07% 0.03% 0.10%

L&G North American G17 A 14.0% 7.6% 15.1% 13.4% 17.3% 14.5% 0.50% 0.00% 0.01% 0.01% 0.02%

L&G Property G17 A 2.8% 0.5% 7.1% 5.1% 7.7% 4.9% 0.50% 0.00% -0.13% 0.03% -0.10%

L&G Schroder Tokyo G17 A -2.2% -0.3% 7.4% 8.2% 11.8% 12.2% 0.50% 0.90% 0.00% 0.08% 0.08%

L&G Schroder UK Alpha Plus G17 A 0.3% 2.7% 5.9% 6.8% 5.9% 6.8% 0.50% 0.95% 0.00% 0.68% 0.68%

L&G Schroder UK Mid 250 G17 A -5.8% 0.2% 6.1% 6.0% 5.2% 7.9% 0.50% 1.10% 0.00% 0.06% 0.06%

L&G Schroder UK Smaller Companies G17 A -10.3% -7.8% 6.9% 3.0% 9.7% 5.7% 0.50% 1.05% 0.00% -0.02% -0.02%

L&G UK Recovery G17 A -7.3% -1.1% 1.5% 5.1% 7.0% 5.7% 0.50% 0.00% 0.13% 0.24% 0.37%

L&G UK Smaller Companies G17 A -4.9% -7.8% 4.5% 3.0% 5.8% 5.7% 0.50% 0.00% -0.14% 0.02% -0.12%

L&G US Equity Index G17 P 9.7% 10.2% 15.1% 15.4% 16.4% 16.9% 0.50% 0.00% -0.02% 0.00% -0.01%

Fund performance is calculated gross before the deduction of fund charges and other fees. Please note that not all funds may be available under your plan and fund charges may vary.

n/a performance data is not available because the share class had not been in existence for the required amount of time.

Annual Report 2020

59

Funds for the Mature Savings Group Personal Pension No 1. Scheme

Fund name

Active (A)

Passive (P)

1 Year Performance


5 Year Annualised Performance Annual

Fund Charge

Transaction Costs


Explicit Costs

Total Costs

Funds With Most Assets

L&G Managed G5 A 4.8% 4.5% 6.5% 6.0% 7.2% 6.7% 0.81% 0.03% 0.07% 0.10%

L&G Managed G6 A 5.1% 4.5% 6.8% 6.0% 7.4% 6.7% 0.56% 0.03% 0.07% 0.10%

With Profits A 7.6% N/A 5.8% N/A 7.5% N/A 0.15% 0.11% 0.04% 0.15%

Other Available Funds

L&G Aggressive Growth G5 A 3.2% 2.9% 7.3% 6.7% 7.4% 7.6% 1.05% 0.03% 0.00% 0.03%

L&G Aggressive Growth G6 A 3.4% 2.9% 7.6% 6.7% 7.7% 7.6% 0.80% 0.03% 0.00% 0.03%

L&G Cash G5 A 0.1% 0.2% -0.2% 0.0% -0.2% 0.0% 0.76% 0.00% -0.03% -0.03%

L&G Cash G6 A 0.3% 0.2% 0.1% 0.0% 0.1% 0.0% 0.51% 0.00% -0.03% -0.03%

L&G Consensus G5 P 5.9% n/a 7.0% n/a 7.9% n/a 0.82% 0.01% -0.01% -0.01%

L&G Consensus G6 P 6.1% n/a 7.2% n/a 8.2% n/a 0.57% 0.01% -0.01% -0.01%

L&G Distribution G5 A 3.6% 4.1% 4.6% 3.8% 5.8% 4.7% 0.88% 0.04% 0.19% 0.23%

L&G Distribution G6 A 3.9% 4.1% 4.8% 3.8% 6.1% 4.7% 0.63% 0.04% 0.19% 0.23%

L&G Equity G5 A -1.9% -1.1% 5.7% 5.1% 5.5% 5.7% 0.77% 0.06% 0.06% 0.12%

L&G Equity G6 A -1.6% -1.1% 5.9% 5.1% 5.7% 5.7% 0.52% 0.06% 0.06% 0.12%

L&G Ethical G5 P 4.2% 2.9% 5.8% 6.8% 5.7% 6.8% 0.79% 0.07% -0.04% 0.02%

L&G Ethical G6 P 4.5% 2.9% 6.1% 6.8% 6.0% 6.8% 0.54% 0.07% -0.04% 0.02%

L&G European G5 A -5.5% 2.0% 5.9% 8.1% 7.0% 9.3% 0.76% 0.06% 0.01% 0.07%

L&G European G6 A -5.3% 2.0% 6.1% 8.1% 7.3% 9.3% 0.51% 0.06% 0.01% 0.07%

L&G European Equity Index G5 P 4.9% 6.4% 9.2% 10.0% 8.5% 9.8% 0.82% 0.02% -0.01% 0.01%

L&G European Equity Index G6 P 5.1% 6.4% 9.5% 10.0% 8.8% 9.8% 0.57% 0.02% -0.01% 0.01%

L&G Far Eastern G5 A 2.6% 3.1% 8.0% 8.1% 9.8% 10.1% 0.79% 0.05% -0.05% 0.00%

L&G Far Eastern G6 A 2.8% 3.1% 8.2% 8.1% 10.0% 10.1% 0.54% 0.05% -0.05% 0.00%

L&G Fixed Interest G5 A 12.4% 12.2% 2.2% 2.1% 5.3% 5.3% 0.76% 0.01% 0.00% 0.01%

L&G Fixed Interest G6 A 12.6% 12.2% 2.4% 2.1% 5.6% 5.3% 0.51% 0.01% 0.00% 0.01%

L&G Index Linked Gilt G5 A 19.3% 18.8% 3.7% 3.8% 9.7% 9.4% 0.76% 0.01% 0.00% 0.01%

L&G Index Linked Gilt G6 A 19.5% 18.8% 4.0% 3.8% 10.0% 9.4% 0.51% 0.01% 0.00% 0.01%

L&G International G5 A 4.6% 5.5% 9.7% 9.9% 10.4% 10.8% 0.80% 0.03% -0.01% 0.02%

L&G International G6 A 4.9% 5.5% 10.0% 9.9% 10.7% 10.8% 0.55% 0.03% -0.01% 0.02%


60

Fund name

Active (A)

Passive (P)

1 Year Performance


5 Year Annualised Performance Annual

Fund Charge

Transaction Costs


Explicit Costs

Total Costs

L&G Japanese Equity Index G5 P -0.6% 0.3% 7.1% 8.4% 10.9% 12.2% 0.82% 0.02% -0.07% -0.05%

L&G Japanese Equity Index G6 P -0.3% 0.3% 7.4% 8.4% 11.1% 12.2% 0.57% 0.02% -0.07% -0.05%

L&G North American G5 A 13.2% 7.6% 14.3% 13.4% 16.4% 14.5% 0.82% 0.01% 0.01% 0.02%

L&G North American G6 A 13.5% 7.6% 14.6% 13.4% 16.7% 14.5% 0.57% 0.01% 0.01% 0.02%

L&G Property G5 A 2.1% 0.5% 6.3% 5.1% 6.8% 4.9% 1.53% 0.04% -0.13% -0.09%

L&G Property G6 A 2.3% 0.5% 6.6% 5.1% 7.1% 4.9% 1.28% 0.04% -0.13% -0.09%

L&G UK Equity Index Fund G5 P 2.1% 2.7% 6.5% 6.8% 6.3% 6.8% 0.51% 0.01% 0.00% 0.01%

L&G UK Equity Index Fund G6 P 2.1% 2.7% 6.5% 6.8% 6.3% 6.8% 0.51% 0.01% 0.00% 0.01%

L&G UK Recovery G5 A -8.0% -1.1% 0.6% 5.1% 6.1% 5.7% 0.80% 0.24% 0.13% 0.37%

L&G UK Recovery G6 A -7.8% -1.1% 0.9% 5.1% 6.3% 5.7% 0.85% 0.24% 0.13% 0.37%

L&G UK Smaller Companies G5 A -5.6% -7.8% 3.6% 3.0% 4.9% 5.7% 0.80% 0.02% -0.14% -0.12%

L&G UK Smaller Companies G6 A -5.4% -7.8% 3.9% 3.0% 5.2% 5.7% 0.55% 0.02% -0.14% -0.12%

L&G US Equity Index G5 P 8.8% 10.2% 14.2% 15.4% 15.5% 16.9% 0.80% 0.00% -0.02% -0.01%

L&G US Equity Index G6 P 9.1% 10.2% 14.5% 15.4% 15.8% 16.9% 0.55% 0.00% -0.02% -0.01%

The performance shown is after the deduction of the annual management charge, other charges may apply depending on your plan.

Annual Report 2020

61

Important notesThe total transaction cost figure includes explicit costs of transaction taxes and broker commissions, and the implicit costs of market spread and market impact after any anti-dilution offsets for the year ending 30th September 2019, unless otherwise stated.

The fund performance for Generations 3 and 25 is provided after all fund charges have been taken, but doesn’t include any other product charges, such as the annual management charge. Please see the product literature for more information on charges.

The fund performance for Generation 17 for Group Stakeholder Pension Plan and Group Personal Pension Plan 2000 funds is provided gross. Your charge and therefore your fund performance may be different from this.

The benchmark/sector performance is gross (with no fees/charges deducted).

The benchmarks/sectors have been provided by L&G in conjunction with independent investment advisers Dean Wetton Advisory.

Please bear in mind that past performance is not a guide to future returns. The value of an investment and any income taken from it is not guaranteed and may go up and down. Investors could get back less than they invest.

Implicit transaction costs have been calculated as the difference between the price at which a deal was struck and the price of the instrument at previous market close. This is consistent with the implicit cost calculation methods allowable prior to 2018 under PRIIPS guidance, which allows firms to assume there is no intra-day data available. Indirect transaction costs have been calculated assuming a static fund structure as at 30th September 2019.

Independent Governa

nce

Co

mm

ittee

the legal & general independent governance committee (igc) · 2020-04-02 · annual report 2020...

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