Statpro Group Plc Executive Pension Plan (the “Scheme”)
Introduction
Defined Contribution (DC) pension schemes are required by law to produce an annual Chair’s Statement that covers:
- The scheme’s default arrangements
- The processing of core financial transactions
- Net investment returns
- Costs and charges
- Trustee knowledge and understanding
- The assessment of value for members
- This is the Chair’s Statement for the Scheme for the year ended 15 December 2024.
This Scheme is exempt approved and registered with the Registrar of Occupational and Personal Pension Schemes – registration number 10275584.
The Sponsoring Employer of the Scheme is:
StatPro Group Plc,
4th Floor, 4 St. Paul’s Churchyard,
London EC4M 8AY
This report is for noting. You do not need to take any action.
Any enquiries concerning the Scheme should be addressed to Maryanne Fernandez at Statpro Ltd at the above address.
The Scheme is closed, and no contributions have been paid or payable since March 2006.
As at the date of this statement there are 5 deferred members of the Scheme.
The Scheme is currently being wound up.
Default Arrangements
The Scheme’s assets comprise unit-linked funds held under insurance policies with Scottish Widows. Scottish Widows is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
The Scheme is not used as a Qualifying Workplace Pension Scheme for the purposes of the automatic enrolment requirements of the Pensions Act 2008 and there is no default investment fund.
The Scheme has fewer than 100 members and is not required to publish a Statement of Investment Principles (SIP) under regulation 2 of the Occupational Pension Schemes (Investment) Regulations 2005.
Core Financial Transactions
As the Scheme is closed, transactions are now primarily restricted to the drawing of members’ benefits on retirement, any transfers requested by members and any claims in the event of a member’s death.
The Scheme is fully insured, and all transactions are processed by Scottish Widows. There have been no transactions under the Scheme in the year under review.
Net Investment Returns
The Scheme holds investments in the form of Scottish Widows Series 2 fund units. The investment returns, net of member-borne charges for each of the funds in which members are invested are shown below. Figures are shown to the 31 December 2024, which is the nearest quarterly reporting date to the Scheme year end.
| Fund | 1 year (%) | 3 years (% p.a.) | 5 years (% p.a.) |
|---|---|---|---|
| Emerging Markets | 11.11 | 1.20 | 2.64 |
| Cautious Managed Pension | 5.17 | -0.29 | 2.00 |
| BlackRock Gold & General | 15.38 | 2.75 | 4.26 |
| Opportunities Portfolio | 12.69 | 5.05 | 6.91 |
| Fidelity 50:50 Special Situations | 14.44 | 5.51 | 7.40 |
| UK Equity | 9.00 | 4.42 | 3.06 |
| Royal London UK Equity Income | 6.53 | 5.79 | 3.77 |
| Schroder Gilt & Fixed Interest | -4.02 | -9.96 | -5.84 |
| Fixed Interest | -4.37 | -9.67 | -5.48 |
Costs and Charges
Members may choose from a range of unit-linked funds managed by or for Scottish Widows.
The standard Annual Management Charge (AMC) for the basic range of Scottish Widows funds is 0.73%. Higher AMCs apply to more specialist funds and those managed by external investment managers.
The Total Annual Fund Charge (TAFC) borne by members is the sum of:
a) the Scottish Widows AMC,
b) if applicable, an External Fund Management Charge,
c) an allowance for any Other Expenses.
Scottish Widows has not been able to provide details of the Transaction Costs for all of the funds, but the Independent Governance Committee (IGC) has reported that these costs are comparable with those of competitors for similar funds.
The AMC levied by Scottish Widows and the TAFC for each fund in which members have invested are shown below.
| Fund | AMC (%) | TAFC (%) |
|---|---|---|
| Emerging Markets | 0.73 | 0.93 |
| Cautious Managed Pension | 0.93 | 0.99 |
| BlackRock Gold & General | 0.73 | 1.74 |
| Opportunities Portfolio | 0.73 | 0.78 |
| Fidelity 50:50 Special Situations | 0.73 | 1.65 |
| UK Equity | 0.73 | 0.73 |
| Royal London UK Equity Income | 0.73 | 1.45 |
| Schroder Gilt & Fixed Interest | 0.73 | 1.06 |
| Fixed Interest | 0.73 | 0.73 |
Trustee Knowledge and Understanding
The trustees’ relevant knowledge and understanding has been assessed where necessary. The trustees have a working knowledge of the trust deed and rules governing the Scheme and of the insured arrangements with Scottish Widows.
The trustees also maintain knowledge through information, updates and guidance from HMRC, The Pensions Regulator (TPR), Scottish Widows and professional advisers.
Value for Members
The trustees have a duty to ensure that the Scheme provides good value for members.
The Occupational Pension Schemes (Scheme Administration) Regulations 1996 require the trustees to make an assessment of charges and transactions costs borne by the Scheme members and the extent to which those charges and costs represent good value for money for members.
As the Scheme is in the process of winding up, the trustees are not required to conduct a detailed Value for Members assessment as required under the Occupational Pension Schemes (Administration, Investment, Charges and Governance) (Amendment) Regulations 2021.
Given that the Scheme is being wound up and the charges are in line with market standards for this type of policy, the Trustees are sufficiently comfortable that the costs and charges of the Scheme represent good value for money for the members.
Investment funds are selected by the members. The trustees, therefore, have concluded that the Scheme’s assets should remain invested in their current funds until the Scheme is wound up.
For and on behalf of the Trustees of the Scheme