1 Contributory Pension SchemeMembers’ Meeting 6 March 2016
2 Agenda Chairman’s introductory remarks Howard JacobsUniversity Pension Arrangements Responsible investment CUACPS Summary Funding Statement Sue Curryer CUACPS overview CUADCPS (SEI Master Trust) overview David Snowdon, SEI Round up and final Q&A All
3 University Pension Arrangements - overviewAssistant Staff Cambridge University Assistants’ Contributory Pension Scheme Cambridge University Assistants’ Defined Contribution Pension Scheme Academic and Academic Related Staff Universities Superannuation Scheme NHS (clinical staff only)
4 University Pension Arrangements – joined after 31 December 2012Hybrid pension arrangement Cambridge University Assistants’ Contributory Pension Scheme (CUACPS) Cambridge University Assistants’ Defined Contribution Pension Scheme (CUADCPS)
5 CPS Benefit Statement
6 Your DC Master Trust Annual Benefit Statement
7 Scheme Funding Statement
8 Scheme Funding
9 Annual Benefit Statement - Members joined Pre 2013
10 Annual Benefit Statement - Members joined Pre 2013
11 Annual Benefit Statement - Members joined Post 2013
12 CPS Guides and Factsheets
13 List of detailed factsheets available from the Pensions Office or website1. Eligibility 2. Retirement benefits 3. Defined contribution basics 4. Defined contribution provider 5. Defined contribution fund factsheets 6. Defined contribution investment guide 7. Defined contribution retirement guide 8. Contributions 9. Salary sacrifice 10. Additional Voluntary Contributions 11. Early retirement 12. Late retirement 13. Pension increases 14. Death benefits 15. Leaving service benefits 16. Ill health benefits 17. Transfers 18. Divorce 19. State benefits 20. Disputes and complaints
14 Any Questions?
15 Cambridge University Assistants’ Defined Contribution Pension Scheme - the SEI Master TrustMembers’ Meeting March 2017
16 CUA DC Pension Scheme: the SEI Master TrustWho are SEI? How does the Master Trust work? What can be paid in What can be paid out Investment options More information Questions
17 Who are SEI? 1968 Founded 300 Investment Experts 25 Participating Employers Access to over 100 managers 499 Institutional clients worldwide £216bn Assets Under Management* (2016) Number of participating employers: 23 Number of members: 15000 Assets : £235m No Debt. Taken on 2-3 schemes per year The Master Trust has been running for 9 years. It is our only DC offering Master Trust Assurance since 2015, Type 2 in May 2016, approved by tPR *As at 30 September 2016 (2015)
18 How does the Master Trust work?While you are working The University pays into your account… …and you pay less tax if you save too! When you retire You can take up to 25% as a lump sum tax free The rest can provide you with extra income and/or be taken as lump sums(s)
19 Tax relief on your contributions - example1. Employer contribution £2,000 x 5% (ER) = £100 p/m 2. Employee contribution £2,000 x 5% (EE) = £100 p/m Less tax relief at 20% -£20 p/m Reduction in your take home pay £80 p/m Illustration assumes that member is a basic rate tax payer with a pensionable salary of £24,000 pa
20 Your DC Master Trust annual benefit statement
21 Where do the contributions show?Your contributions University contributions Total paid in since joining
22 What your benefits could be at your selected retirement ageWhat your DC Account could be worth at your selected retirement age Your ‘selected’ retirement age (you can change this at any time) What you might get at your selected retirement age from an annuity. 5% of your fund taken as an annual income Average life expectancy for someone born in the same year as you
23 How the contributions are being investedFund Names Value invested in each Fund Invested in the Default Strategy?
24 Default Lifestyle Strategy = “Decide on my behalf”Where the 5% employer contribution is automatically invested when you join Where 99% of members are invested Remain in this strategy or switch into other funds at any time Total investment management charge of 0.50% Built around selected retirement age (65 as default) Automatically switches into lower risk funds as you get older Inform us if you decide to retire early/later
25 Total Investment ChargeFlexible fund choices = “I want to choose” Fund name Asset Class Total Investment Charge Risk level SEI Sterling Liquidity Fund Money Market 0.20% Conservative SEI Defensive Fund Multi-asset 0.68% SEI UK Core Fixed Interest Fund UK bonds 0.50% Conservative-Moderate SEI Moderate Fund 0.73% SEI Core Fund 0.78% Moderate SEI Growth Fund 0.83% Moderate-Aggressive SEI Aggressive Fund Equities 0.88% Aggressive SSgA Global Equity 50:50 Index 0.12% Build Your Own Portfolio (You do the work) SSgA Global Equity 50/50 Index Fund SEI Global Developed World Equity Fund SSgA UK Equity Index Fund SEI UK Equity Fund SEI Emerging Market Equity Fund SEI UK Core Fixed Interest SEI Index Linked Gilts Index Fund SEI Sterling Liquidity Fund * SSgA Funds have a bid/offer spread 8 funds from low to high risk. Standalone Cash and Bond funds mostly used in the run up to retirement as low risk. Range selected with employer to provide the right degree of choice but if you need more then we will review. 5 risk rated strategy funds (Moderate to Aggressive) for you to choose from. Each one is a multi asset fund investing in a wide range of different asset classes – allocation reviewed on an ongoing basis by the managers and amended (eg if Europe bad place to invest – invest less in Europe!) Those of you with PPs may think 8 is a short list of funds. To give you a feel for what is going on underneath, the Core fund for example has 66 different fund managers responsible for running parts of the fund (Shares, Bonds, UK, US, Europe etc). If we feel we need to replace any of them of them for any reason we do so immediately. 25
26 Where can I get more information?All the information from your statement and a lot more at: hartlinkonline.co.uk/sei ‘What if’ tools, factsheets and newsletters ‘Online valuations, projections and fund switching SEI Master Trust Member helpdesk: T: E:
27 Any Questions? Draft v1.0 for Review
28 Important informationThis information is being provided on behalf of SEI Trustees Limited (the “Trustee”) in your capacity as a member of the SEI Master Trust, an occupational pension scheme (the “Scheme”). This document is not intended to constitute an offer to buy or sell, or a solicitation of an offer to buy or sell any particular product. Please note, in addition, that any investment products described in this document are only available in relation to your and/or your employer’s contributions to the Scheme – you may not be able to invest in these products directly. The information in this document is for general information purposes only and does not constitute investment advice. You should read all the investment information and details on the funds before making investment choices. If you are in any doubt about how to invest, you should seek independent advice before making any decisions. Neither this document nor any part of its contents may be reproduced or redistributed without the written consent of the Trustee. Past performance is not a guarantee of future performance. Investment in the range of the SEI Master Trust’s funds is intended as a long-term investment. The value of an investment and any income from it can go down as well as up. Investors may not get back the original amount invested. SEI Trustees Limited, 1st floor, Alphabeta, Finsbury Square, London EC2A 1BR, United Kingdom +44 (0)
29 Appendix Performance of funds underlying the default strategy
30 Fund Performance Asset Allocation Funds Return Fixed Income Return3 Months 1 Year 3 Years SEI GAF Aggressive Fund - GBP Inst 6.43% 24.88% 12.57% Aggressive Strategic Portfolio Benchmark 5.44% 24.17% 11.34% SEI GAF Core Fund - GBP Inst 2.95% 17.59% 8.58% Core Strategic Portfolio Benchmark 2.09% 14.75% 7.98% SEI GAF Moderate Fund - GBP Inst 1.30% 14.20% 7.14% Moderate Strategic Portfolio Benchmark 0.72% 10.24% 6.63% SEI GAF Defensive Fund - GBP Inst -0.05% 5.45% Defensive Strategic Portfolio Benchmark 0.02% 4.78% 3.76% Fixed Income Return 3 Months 1 Year 3 Year SEI GMF UK Core Fixed Interest GBP Inst -3.14% 10.96% 8.54% BofA Merrill Lynch Sterling Broad Market Index (GBP) -3.36% 10.61% 8.20% Cash and Equivalents Return 3 Months 1 Year 3 Year SEI GMF Sterling Liquidity Fund - GBP Inst 0.05% 0.40% 0.38% BofA Merrill Lynch British Pound LIBID 1-Month Average (GBP) 0.04% 0.30% 0.35% Other Return 3 Months 1 Year 3 Year State Street Global Equity (50:50) Index Fund 4.83% 21.67% 9.56% Blended Benchmark 4.85% 9.53% Performance shown is gross of fees. Performance shown to 31 December 2016
31 Strategic Portfolio BenchmarksSGAF AGGRESSIVE FUND SGAF MODERATE FUND Until 31/12/2015 From 1/1/2016 38% FTSE All Share Index 40% FTSE All Share Index 20% FTSE All Share Index 10% FTSE All Share Index 62% MSCI World Index (Net) 60% MSCI ACWI IMI 23% MSCI World Index (Net) 20% MSCI ACWI IMI 18% BofA ML Sterling Broad Market Index 25% Barclays Sterling Aggregate Index SGAF GROWTH FUND 30% Barclays Global Aggregate (GBP Hedged) 45% Barclays Global Treasury 1-3 yrs (GBP Hedged) 9% BofA ML LIBID 3 Month Average Coupon 37% FTSE All Share Index 30% FTSE All Share Index 45% MSCI World Index (Net) 55% MSCI ACWI IMI SGAF DEFENSIVE FUND 2% BofA ML Sterling Broad Market Index 10% Barclays Sterling Aggregate Index 16% Barclays Global Aggregate (GBP Hedged) 5% Barclays Global Treasury 1-3 yrs (GBP Hedged) 10% MSCI World Index (Net) 10% MSCI AC World Index (Net) 16% BofA ML Sterling Broad Market Index 15% Barclays Sterling aggregate Index SGAF CORE FUND 24% Barclays Global Aggregate (GBP Hedged) 50% Barclays Global Treasury 1-3 yrs (GBP Hedged) 50% BofA ML LIBID 3 Month Average Coupon 25% BofA ML LIBID 3 Month Average Coupon 26% FTSE All Share Index 15% FTSE All Share Index 26% MSCI World Index (Net) 35% MSCI ACWI IMI 14% BofA ML Sterling Broad Market Index 20% Barclays Sterling Aggregate Index 27% Barclays Global Aggregate (GBP Hedged) 30% Barclays Global Treasury 1-3 yrs (GBP Hedged) 7% BofA ML LIBID 3 Month Average Coupon
32 Example: SEI Core Fund Holdings information as at 30 June 2016For illustrative purposes only
33 ESG overlay with BMO F&CResponsible Engagement Overlay (REO) SEI’s approach to voting & engagement ESG overlay with BMO F&C Greater value for Fiduciaries Risk reduction Better company management Sustained and constructive dialogue Rigorous in-house Research Active Engagement Global capability Customised approach Communication with company management Robust Proxy Voting Equity and corporate bonds NO IMPACT ON THE PORTFOLIO CONSTRUCTION OR INVESTMENT STYLE Trustees can exert a lot more influence by participating in a powerful and professional engagement overlay manager than by negative screening Negative screening typically limited to weapons and sometimes child labour, engagement covers a much wider spectrum Responsible Engagement can be effectively implemented with neutral or positive performance impact A diverse and specialised ESG competency team is needed with ability to dialogue in multiple languages, maintain deep understanding of industry challenges, local cultures and operating climate Engagement requires a degree of scale (share representation) to gain the attention of senior management of portfolio holdings Draft v1.0 for Review * Source: F&C
34 Important informationThis information is being provided on behalf of SEI Trustees Limited (the “Trustee”) in your capacity as a member of the SEI Master Trust, an occupational pension scheme (the “Scheme”). This document is not intended to constitute an offer to buy or sell, or a solicitation of an offer to buy or sell any particular product. Please note, in addition, that any investment products described in this document are only available in relation to your and/or your employer’s contributions to the Scheme – you may not be able to invest in these products directly. The information in this document is for general information purposes only and does not constitute investment advice. You should read all the investment information and details on the funds before making investment choices. If you are in any doubt about how to invest, you should seek independent advice before making any decisions. Neither this document nor any part of its contents may be reproduced or redistributed without the written consent of the Trustee. Past performance is not a guarantee of future performance. Investment in the range of the SEI Master Trust’s funds is intended as a long-term investment. The value of an investment and any income from it can go down as well as up. Investors may not get back the original amount invested. SEI Trustees Limited, 1st floor, Alphabeta, Finsbury Square, London EC2A 1BR, United Kingdom +44 (0)