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Group Personal Pension Scheme

Introducing Aegon’s

Workplace SIPP platform

Presented by

Patterson-Mills in conjunction with Aegon

19 October 2018

Presenters

Frank Meaden, Edward Mills, Chris Rathbone

❑Aegon Workplace ARC SIPP – reducing your costs now and for the future

❑Your existing funds – ongoing investment and mechanics of switch to the new scheme

❑Enhancing returns – using Patterson-Mills’ actively managed pension portfolios

❑At retirement flexibility - all from one place

❑Your ARC a/c – adding ISAs and GIAs and Patterson-Mills can also advise

❑Online tools – using Aegon’s Retiready platform

❑Your questions answered

Agenda

3

My name is Frank Meaden and I’m an employee of Aegon.

Dentsu Aegis Network, in partnership with Patterson Mills, their advisers and

Aegon, your pension provider, will soon move your workplace retirement

savings scheme to Aegon's retirement savings platform - Aegon Retirement

Choices (ARC). I’m here to let you know about that change and to answer your

questions about it.

This is not intended to be financial advice, if you’re unsure whether this is right

for you or need advice, please speak to the Advisors at Patterson-Mills who are

paid by Dentsu Aegis Network to advise you.

4

Aegon Retirement Choices (ARC) puts you in control of your

financial futures. Our award-winning platform provides you with

the flexibility to manage wealth accumulation, workplace

savings and retirement income through one single online

solution.

The range of products and investments can adapt with your

changing financial needs, as you progress through your working

life into retirement. And, by bringing all your savings together,

you could benefit from lower charges and control of your whole

portfolio in one place.

Aegon Retirement Choices (ARC)

Aegon Retirement Choices (ARC)Our investment platform

ARC lets you buy, sell and hold most of your investments online, all in one place.

5

The flexibility of a SIPP allows you to spread the risk, especially if some investments perform badly. However, these may have

higher costs than a standard pension and active management is essential to maximise the benefits of the wider investment

choice on offer. For these reasons, they will not be suitable for everybody and generally, only those who are fairly experienced

at actively managing their investment, or those taking investment advice, should consider this type of investment. The value

of a SIPP can fall as well as rise. You may get back less than amount invested.

A short comparison

New Vs oldNow you get a whole lot more

Vs

Personal Pension

Paper comms and signed forms

Change plan to access income

Scheme adviser

Self-invested Personal Pension (SIPP)

Digital

One plan - save and income

Scheme and personal adviser

ISA

Other savings

6

Current price New price

Investment charge for default fund n/a 0.05%

0.25% 0.12%

Total annual charge 0.25%

Charges

So the maximum annual service charge you would be subject to is £300 if you have £250,000 or more invested with

us. This tiered pricing option is attractive for pension consolidation and other assets such as an ISA.

Pricing reviewTowards increased transparency

Service charge

• For fund value up to £250,000 – 0.12%

• For fund value over £250,000 – 0%

You may incur other charges which will vary depending on the investment solution you adopt.

These charges may vary in future

Policy fee £2.05 £2.05

0.17%

7

Your future payroll contributionsYour investment strategy

For advice as to whether a fund is suitable for you, please speak to your financial adviser.

• Your contribution will be paid into the scheme

default fund.

• If you’ve selected your own funds, we will, if

possible, replicate that choice.

• You can select new funds as soon as you have

access.

All payroll pension contributions will be paid into the new plan from November 2018 pay

What next?

8

‘No worse off’ test

No offer to transfer

We can’t evidence it’s in

your best interests.

You can transfer yourself if

you wish.

We’ll move your

fund for youWe expect to be able to do

this for most employees.

You can opt out.

Existing moniesYour GPP fund with Aegon

It’s marginal

We’ll move your money for

you, but will required a

signature from you.

What next?

9

TimelineWhat will happen and when

Presentations

delivered –

18th October

Retiready

activation

email – 3rd

October

Transfer

direct offer

closes – 31st

October

What next?

First

contributions

– November

payroll

❑Target age-based and risk-based asset / funds mix➢ standard company pension objective - aka “lifestyling”

➢ aiming for cash / bonds at selected age (e.g. 65)

➢PM advice assesses ideal asset mix choices, revised annually

❑Limited fund range in GPP product➢ choosing appropriate actively managed funds portfolio very difficult

➢most appropriate alternative active funds often not available

➢ passive funds (Blackrock) represent most suitable option within constraints

❑Passive funds used / recommended:➢ avoids “stock-picking” - the buy / sell timing dilemma

➢minimises management costs

➢ assures specific asset-class / market driven returns

Current investment portfolio design - GPP

*Brinson, Hood and Beebower 1986 and subsequent papers by Ibbotson and Kaplan in 2000, updated by Xiong, Ibbotson, Idzorek & Chen 2010 for CFA Institute of North America

Fundamental Analysis(Research & Review)

Asset Allocation

Equities / Bonds Property / Cash

PortfolioSelection

Investment Return

Key factors affectinginvestment returns*

Economic / Political / Sentiment

Causing at least70%

of market movements

Cost Type% pa

PM Passive

% pa

PM Active

% pa

Retail Active

Scheme (ARC) 0.12 0.12 0.30*

Portfolio of funds** 0.10 0.85 0.85

Adviser portfolio fee 0.00 0.30 0.65

Total cost per annum 0.22 1.27 1.85

Cost Type% pa

PM Passive

% pa

PM Active

% pa

Retail Active

Scheme (ARC) 0.00 0.00 0.30*

Portfolio of funds** 0.10 0.85 0.85

Adviser portfolio fee 0.00 0.30 0.65

Total cost per annum 0.10 1.15 1.85

PM Active Portfolio cost comparisonOn all funds on ARC platform up to £250,000

On all funds on ARC platform above £250,000

PM Active Portfolios

PM Passive Portfolios

* Competitive retail scheme platform

** Portfolio costs vary, figure shown is approximate median for our Active Portfolios, a discretionary manager would increase costs further to a total of 2.25% +

Workplace ARC SIPP - investment flexibility

Distinctive investment portfolio design within your workplace pension scheme

❑ Open architecture SIPP:

✓ complete universe of regulated investment funds (4,500+) - rare for a specific fund

not to be available

✓ enables low-cost access to Patterson-Mills’ actively managed portfolios

✓ active portfolio updating is quarterly and continues if you leave, keeping your costs low

and performance (hopefully!) enhanced

Aegon Workplace ARC SIPP

The value of units can fall as well as rise and past performance is not an indication of future returns.

Total Return Chart - ATR 4 - Moderately Adventurous (15yrs+ to TRA)

72 months to 30 September 2018 (longest period available)

Total Return Chart - Passive v Active

ATR 4 - Moderately Adventurous (15yrs+ to TRA) 72 months to 30 September 2018 (longest period available)

The value of units can fall as well as rise and past performance is not an indication of future returns.

Key Name Performance Volatility

A Model Portfolios (variable - MP7 - RSM 100%) - (R) GTR 91.11 8.08

B AFI Aggressive TR in GB 78.20 7.77

C DAN GPP - DAN GPP Aegon ATR 4 15 yrs+ (2016/17) 74.75 8.22

D FTSE All Share TR in GB 70.67 9.60

E PN Mixed Investment 40-85% Shares GTR in GB 58.30 6.67

Total Return Chart - Passive v Active

ATR 3 – Balanced Risk (15yrs+ to TRA) - 72 months to 30 September 2018 (longest period available)

The value of units can fall as well as rise and past performance is not an indication of future returns.

Key Name Performance Volatility

A Model Portfolios (variable - MP6 - RSM 100%) - (R) GTR in GB 80.02 6.87

B FTSE All Share TR in GB 70.67 9.60

C DAN GPP - DAN GPP Aegon ATR 3 15 yrs+ (2016/17) GTR in GB 65.94 7.61

D AFI Balanced TR in GB 58.33 5.98

E PN Mixed Investment 40-85% Shares GTR in GB 58.30 6.67

Pricing Spread: Bid-Bid • Currency: Pounds Sterling

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78.0

76.0

74.0

72.0

70.0

68.0

66.0

64.0

62.0

60.0

58.0

56.0

54.0

52.0

0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 6.5 7.0 8.5 9.0 9.5 10.0 10.5 11.0 11.5 12.0 12.5 13.0

erformMean nce of 5.9

MeanA nn. Vol atility of 7.61

A

B

C

D E

13.5 14.0 14.5 15.0

30/09/2012 - 30/09/2018 © FE 2018

7.58.

0Ann. Volatility

%

Perf

orm

an

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Full Ethical / SRI fund options

EdenTree Investment Management

Brown Advisory

F&C Asset Management

Kames Capital (subsidiary of AEGON NV)

Liontrust – formerly Alliance Trust

Pictet

Quilter Cheviot

Rathbone Brothers

Royal London

Sarasin & Partners

Standard Life

Stewart Investors

SVM Asset Management

Unicorn Asset Management

❑ Aegon’s own ARC SIPP funds mix – pre-set managed asset mix

❑ Or our Patterson-Mills actively managed Ethical SRI Rated Portfolios using:

Retirement flexibility - your Aegon workplace SIPP

Up to your retirement, at your retirement, throughout your retirement

Truly flexible financial planning:

➢ build-up of funds – wider whole funds universe to access

➢ at your chosen retirement date, no need to transfer as your Aegon SIPP allows:

✓ take tax-free cash as and when you choose

✓ withdraw taxable pension payments as and when you choose

✓ vary your pension payments (inc. ad-hoc amounts) as and when you choose

➢ place some of your funds into guaranteed income products should this be suitable*

* Additionally, the guarantee of an annuity option remains at any time if ongoing investment risk not suitable

Flexible Access @ retirement

Individual Savings Account (ISAs)

❑ Annual limit £20,000 each (2018/19):o regular contributions from £100pm

o Transfers-in of old ISAs, PEPs permitted (outside of allowance)

o Competitive costs with online access

❑ Flexibilityo No fund size lower limit

o Contributions can vary or stop / start

o Withdrawals can be made and re-invested later (same tax year)

❑ Investment strategyo Risk-graded model portfolios – Rayner Spencer Mills Research

o Wealth management quality active investment selection

o Low cost access within your Workplace ARC a/c

Investment ISA / GIA

Aegon Workplace ARC SIPP

Pension Contributions

Tax Relief

PM Passive Portfolios

PM Active Portfolios

Flexible Access @ retirement

Investment ISA / GIA

22

What percentage of the UK’s population are on track for the retirement they want?

13%

Retiready

Retirement readinessIs the UK on track?

Aegon UK Readiness Report, April 2017

23

The digital service that lets you

take control of your retirement

savings

Retiready

What is Retiready?Making retirement planning simple

24

The activation emailThe first step

We’ll send you an activation

email, simply follow the short

journey and you’ll have

access.

Retiready

25

Retiready

Retiready homepageWhere it all starts

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• Current workplace value.

• Last contribution received.

• Links to documents, transactions,

fund performance and fund activity.

• Links to switching, one off and

regular contribution support articles.

Retiready

Your savingsUnderstanding the value of your retirement savings

27

Retiready

Your Retiready scoreA measure of the probability of you hitting your goal

28

Retiready

Goal PlannerUsing the planner

29

The dashboardARC’s homepage

ARC

30

Your account summaryYour portfolio and transaction history

ARC

31

Use Aegon webchat

Send an email to

clientsupport@arc.aegon.co.uk

Call us on 03456 100 072

Questions

Any questions?We can answer them

32

To retirement - and through itA whole of life solution

Using Retiready will help you to take care of planning your retirement and ARC will support you

through the other two stages – growing your investments and taking an income.

ARC can help you build up your savings and

take an income when ready, offering you the

flexibility to change it if you need to.

Retiready provides account information and can

help you plan for your retirement

Planning your journey Investments now and later, income

Summary

Summary

❑Aegon Workplace ARC SIPP – reduces costs now and for the future

❑Your existing funds – automatically switched to the new scheme

❑Actively managed investment portfolios now available from Patterson-Mills (inc.

Ethical / SRI)

❑At retirement flexibility – no transfers-out, all under one roof

❑Your ARC a/c – at any time add ISAs and GIAs monies alongside (similar portfolios

available)

❑Online tools – Aegon’s Retiready platform easy to use on any device

❑Now to answer your questions

33

Aegon is a brand name of Scottish Equitable plc (No. SC144517) and Aegon Investment Solutions Ltd

(No. SC394519) registered in Scotland, registered office: Edinburgh Park, Edinburgh EH12 9SE. Both

are Aegon companies. Scottish Equitable plc is authorised by the Prudential Regulation Authority and

regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Aegon

Investment Solutions Ltd is authorised and regulated by the Financial Conduct Authority. Their

Financial Services Register numbers are 165548 and 543123 respectively. © 2018 Aegon UK plc

Thank you for listening.

Members of the Simply Biz Adviser Group and directly authorised and regulated by the

Financial Conduct Authority (ref: 774841).

Patterson-Mills Financial Planning Ltd

7 Furzton Lake, Shirwell Crescent, Furzton Milton Keynes, MK4 1GA

Tel: 01908-503741

Email: edward@pattersonmills.com

www.pattersonmills.com

This presentation summarises investment types; specific recommendations can only be made once each Member has a detailed

discussion with Edward or Chris from Patterson-Mills. It is only after discussion with you, that we can be certain of the suitability of

an investment or arrangement or for your investment strategy to be confirmed. Once such suitability has been agreed with you, you

will be sent our confirmation letter detailing our recommendations and agreed actions, including why specific recommendations are

deemed as appropriate financial decisions for your circumstances and you will be covered by the UK authorised investment

Guarantee from the FSCS for all relevant recommendations.

October 2018

Small Print

The value of investment units can fall as well as rise and past performance is not an indication of future returns.