Coronavirus pandemic

You will probably be aware of the significant falls that have taken place in global financial markets as a result of the Coronavirus pandemic. These falls will have an impact upon pensions and savings all over the world, and unfortunately this will include members of the Salvus Master Trust.

The Trustees of the Salvus Master Trust believe that members should not panic, but should remember that pension savings are for the long term, and that markets typically respond positively after a crisis has passed.

If you are uncertain as to how this impacts you and your investments we recommend that you seek financial advice. If your employer uses a financial adviser in connection with their scheme, you may wish to speak to them. If there is no adviser associated with your scheme, you could find an Independent Financial Advisor here.

Freestyle funds – self select investments

Workplace pensions are required to have a default investment to ensure members can be enrolled without the need to make a choice.

Details of the Salvus Master Trust default investment are available here. The default investment is subject to a regulatory charge cap, the cap is currently 0.75% annual management charge, but charges can be lower.

Should a member make an alternative investment choice, the alternative fund(s) may not be subject to the cap. Therefore anyone considering self selecting investments should consider financial advice and the potential implications of higher investment charges.

For those that decide they do want something different to the Default Fund, Freestyle Self Select is available.

Using the Aegon investment platform, Freestyle Self Select allows you to invest in alternative funds, which are:

  • Table 1 – charged at the same rate as the default investment
  • Table 2 – charges are as shown below and are not subject to the charge cap
  Table 1    
Aegon Cash    
Aegon BlackRock Corporate Bond Tracker (these are Bonds) and are invested in a mix of Sterling Corporate Bonds    
Aegon BlackRock Over 15 Years Corporate Bond Tracker (these are Bonds) and are invested in a mix of Sterling Long Bonds    
Aegon BlackRock Over 15 Years UK Gilt Tracker (these are Bonds) and are also invested in a mix of Sterling Long Bonds    
Aegon UK Gilts All-Stocks Tracker (these are Bonds) and invest in UK Gilts    
Aegon BlackRock UK Index-Linked Tracker (these are Bonds) and invest in UK index-linked Gilts .  
Aegon BlackRock World (ex UK) Equity Tracker (these are Equities) and invest in Global Equities    
Aegon BlackRock UK Equity Tracker (these are Equities) and invest in UK Companies    

Table 1, important notes:

  • your documentation on joining, annual statements and member portal all confirm the default investment charge
  • the charge of 1% on the factsheets is for information purposes only and is discounted to your appropriate investment charge
  • the factsheets are updated quarterly 
  Table 2 AMC  
Aegon BlackRock Pacific Rim Equity Tracker 0.75%  
Aegon BlackRock Emerging Markets Equity Tracker 0.75%  
Aegon Balanced Passive 0.75%  
Aegon Scot Eq Legal & General Pre-Retirement 0.80%  
Aegon Distribution 0.75%  
Aegon HSBC Life Islamic Global Equity (Amanah) 1.05%  
Aegon Ethical 1.05%  
Aegon Scot Eq M&G Recovery 1.45%  

Table 2, important notes:

  • the Annual Management Charge (AMC) is not subject to the charge cap
  • the charges are listed above, discounted from the charges shown on the factsheet
  • the factsheets are updated quarterly

The funds are continually reviewed to ensure they are suitable.

The annual management charge applicable to these funds will be shown on your documentation and in your member portal, which is hosted by our administrator HS Admin, and will be based on the arrangement agreed with your Employer when the Pension Scheme was established.

Members should consider taking advice from an FCA approved Independent Financial Adviser regarding which funds to invest in if they are not sure themselves.