DEFAULT INVESTMENT STRATEGIES
Scottish Widows Pension Investment Approaches (PIAs) are designed to offer a low cost, flexible option while targeting a number of retirement outcomes.
The Scottish Widows Master Trust uses the Balanced PIA 'Targeting Flexible Access' as the core default investment option. The Scottish Widows Pension Investment Approaches are home to more than £40bn of assets, including £3bn invested in Environmental, Social and Governance through the BlackRock ACS Climate Transition World Equity Fund. Trustee monitoring aims to ensure that the asset allocation reflects members’ best interests. The default is available to members of any section, unless their employer has selected a different solution, subject to agreement with the Trustees.
The default investment option includes:
- Optimal asset mix and allocation stochastically modelled by experts Moody’s
- Inclusion of 15-year lifestyle glidepath with smooth automatic monthly switching
- Automatic quarterly rebalancing.
In addition to the default investment option, the Trustees also aim to offer an appropriate range of alternative options for members who wish to make their own investment choices.
Alternative default investment options:
There are two alternative "default" investment options available for an employer to select if deemed more appropriate for their employees' needs. Subject to agreement with the Trustees.
- Balanced PIA - Targeting Annuity – suited to members expecting to buy an annuity
- Balanced PIA - Targeting Encashment – suited to members expecting to take their retirement benefits as cash.
Alternative Self-Select Lifestyles:
Members can also self-select from eleven alternative lifestyle strategies (including the two alternative default options described above), based on their attitude to risk or desired outcome at retirement. The de-risking element of most of these strategies is identical to the default investment options, with a 15-year glidepath, monthly switching and quarterly rebalancing.