MANAGED PENSION FUNDS LIMITED. State Street Global Advisors UK-domiciled pooled fund range

Transcription

1 MANAGED PENSION FUNDS LIMITED State Street Global Advisors UK-domiciled pooled fund range

2 Managed Pension Funds Limited KEY FACTS If you have any queries about Managed Pension Funds Limited (MPF) please contact your Relationship Manager or: Investors Transaction and Dealing Enquiries European Shareholder Services T +44 (0) F +44 (0) Life Company Investment Manager Custodian Domicile Fund Structure Holding Type In-Specie Transfer Capabilities Auditor Managed Pension Funds Limited State Street Global Advisors Limited State Street Bank and Trust United Kingdom Pooled fund structure Unit-linked life policy Yes (please contact SSGA) Ernst & Young LLP Clients General Enquiries Client Relationship Management T +44 (0) londoncrm@statestreet.com Consultants Consultant Relations T +44 (0) ConsultantRelationsLondon@ssga.com Accounting Year-end Date 31 December Investment Styles Index, Smart Beta, Active, Enhanced, Currency Hedged, Target Retirement, Diversified, Liability-driven Investing, Cash. Pricing Basis Dealing Frequency Notification Deadline Mid/Bid/Offer, except 'As of' (historically) priced funds which use single swinging pricing Daily One day before dealing date, by 9.30am* Valuation Point Relevant market close* Settlement Timeframes Contributions and Redemptions: Dealing day +3* Registered Office 20 Churchill Place, Canary Wharf, London E14 5HJ +44 (0) * 'As of' (historically) priced funds may vary. Please refer to the Policy Document for details. This document is intended to provide a general overview of Managed Pension Funds Limited and is not a legally binding document. Investors should consult with their legal, tax and financial advisors before investing. Unless otherwise stated, this document is accurate as at 31 December 2015, but is subject to change.

3 State Street Global Advisors AT A GLANCE State Street Global Advisors is a leading provider of investment management services and one of the world s largest institutional asset managers with over 1.45 trillion in assets under management. 1 We have investment centres in London, Boston, Dublin, Hong Kong, Paris, San Francisco, Singapore, Sydney and Tokyo, and offices in 26 cities worldwide. 1 We have been operating in London since 1990 and now rank as one of the major investment managers in the UK. 2 The ultimate parent company for State Street Global Advisors Limited is State Street Corporation. State Street Corporation is listed on the New York Stock Exchange (NYSE: STT). You can learn more about us and our range of investment offerings and research at ssga.com BN Pension Fund Clients 1 MPF Assets Under Management 1 GLOBAL REACH + LOCAL MARKET EXPERTISE State Street Global Advisors is a leading provider of investment management services with over 1.45 trillion in assets under management. 1 We have 26 offices and 9 investment centres across five continents. DEDICATED INVESTMENT PROFESSIONALS Over 30 years, we ve built experienced teams in index and active equity, fixed income, currency management, cash management, multi-asset class solutions, liability-driven investing and alternative investments. CLIENT-FOCUSED APPROACH In the UK we work with a diverse client base including defined benefit and defined contribution pension schemes, fund platforms, public funds, third-party distributors and charities to meet a variety of investment objectives. DIVERSE INVESTMENT CAPABILITIES Our investment services cover a wide range of asset classes, investment approaches and styles, implemented through both pooled and segregated structures. We also partner with clients and their consultants to provide customised investment solutions. 1 Source: State Street Global Advisors. AUM reflects approx bn (as of 31 December 2015) with respect to which State Street Global Markets, LLC (SSGM) serves as marketing agent; SSGM and State Street Global Advisors are affiliated. 2 Source: Investments & Pensions Europe, June 2015.

4 OVERVIEW Managed Pension Funds Limited (MPF) is State Street Global Advisors flagship UK-domiciled pooled fund vehicle for pension fund investors including both defined benefit and defined contribution schemes. MPF is generally available to pension schemes registered with HM Revenue and Customs for the purposes of Chapter 2 of Part IV of the Finance Act In the case of non-uk pension schemes, MPF is available to those schemes which satisfy the applicable requirements set out in the Pension Schemes (Categories of Country and Requirements for Overseas Pension Schemes and Recognised Overseas Pension Schemes) Regulations The vehicle offers a suite of pooled funds across the major asset classes and provides investors with cost-effective access to a broad range of investment strategies. As of 31 December 2015, MPF had 31.6 billion under management for 182 pension fund clients. 4 MPF is a limited liability insurance company of which State Street Corporation is the sole shareholder. Investors become policyholders of MPF. MPF assigns investment management, marketing and client relationship functions to State Street Global Advisors Limited. Custody and fund pricing services are provided to MPF by State Street Bank and Trust, while securities lending services are provided to MPF by State Street Bank GmbH. MPF has six Board members (including three independent Non-Executive Directors), an Actuarial Function Holder and a Compliance Officer. MPF is authorised by the Prudential Regulation Authority (PRA) and regulated by the Financial Conduct Authority (FCA) and PRA. It is subject to periodic reviews and is required to maintain a high quality governance framework in adherence to PRA and FCA requirements. Investment Strategies in MPF MPF is designed to provide defined benefit and defined contribution schemes and fund platforms with costeffective access to a broad range of investment strategies. MPF offers funds across a range of asset classes and investment styles, including index equity and fixed income, cash, enhanced equity, active equity, currency-hedged index equity, fund of funds and diversified growth. Specialist default solutions for defined contribution plans are also available, including our suite of Timewise Target Retirement Funds. We can provide flexible asset allocation across the sub-funds to help clients build diversified portfolios tailored to their investment objectives. The pooled structure of MPF means the asset class components can be used as building blocks to created bespoke solutions for pension schemes. Expanding the Opportunity Set Exchange Traded Funds We have added to MPF a new suite of pooled funds that aim to provide cost effective passive exposure to an even broader range of investments including previously difficult to access asset classes such as dividend tilted equities. Access to these asset classes is gained by wrapping ETF assets within the designated MPF sub-funds. This solutions-oriented approach means that UK pension funds can access the ETF asset classes without the need to trade them directly or the need for a custodial account (as MPF has the custody arrangements for holding ETFs). Investors simply invest in MPF as they would for any other sub-funds available in the vehicle. The ETFs accessed are State Street Global Advisors highly regarded SPDR ETF funds. Smart Beta Always at the forefront, we continue to evolve indexing expertise and capabilities most recently through innovations in systematic, rules-based Smart Beta strategies. With these strategies investors can venture beyond simple market capitalization-weighted approaches to explore other sources of return or express specific investment views. These strategies are designed to maintain the low cost and transparency of traditional passive investing. Within MPF, investors can currently choose from Fundamental Index funds that target low price-tofundamental factor stocks, or a proprietary passive strategy that is designed to identify high quality and low volatility stocks across both developed and emerging markets. 4 Source: State Street Global Advisors, as at 31 December 2015.

5 Opportunities for Defined Contribution Schemes We recognise the unique requirements of defined contribution (DC) pension savers, schemes and fund platforms. This is why our philosophy in developing funds for the DC sector is to create investment strategies that are sophisticated in their assumptions and design, yet straightforward and clear for investors. For trustees and scheme sponsors our Timewise Target Retirement FundsTM are designed as a comprehensive default investment option. With an intelligently devised and value driven combination of assets, which adapt and evolve over time, the funds can offer a powerful and flexible investment solution for people in workplace pension schemes. Investment design is informed by our ongoing research and engagement into plan and member needs. Asset allocation within the Timewise funds is based on State Street Global Advisors investment insights. We assess a range of factors to determine what combination of investments we believe are typically appropriate for investors looking to retire on the target retirement date of each fund. Glide path helps to manage risk. Our glide path and built-in risk management tools are designed to help address the common risks members face when investing for retirement including shortfall, inflation and market volatility risks. Broad asset class exposure improves diversification. As a result of diversification, members investments can benefit from reduced volatility with the potential to improve the risk-return trade off over time. Continual asset class evolution. We design portfolio asset allocations using our proprietary macroeconomic forecasts combined with our decades of institutional portfolio management experience. More value for workplace savers. A foundation of index investments, combined with our own investment architecture, is designed to provide increased value for workplace pension schemes. Within MPF, we also offer a range of funds that are structured specifically to suit DC platform models, as well as a suite of net funds for DC schemes that invest in MPF either directly or via an administrator. The net funds deduct management fees from the unit price to facilitate ease of administration in relation to fees and fund costs.

6 INVESTMENT EXPERTISE We can provide flexible asset allocation across the sub-funds to help clients build diversified portfolios tailored to their investment objectives. The pooled structure of MPF means the asset class components can be used as building blocks to created bespoke solutions for pension schemes. Index Equity Equity funds that seek to track their designated index with low tracking error volatility relative to the benchmark The trade-off between tracking error and transaction costs is managed to optimise performance Fund range includes global, regional and country index tracking opportunities An additional selection of dividend-tilted index funds that access SSGA s SPDR Exchange Traded Funds as underlying assets Index Fixed Income Fixed income funds that seek to track their designated index with low tracking error volatility relative to the benchmark Well-defined and transparent indices Manage risk across currency, duration, yield curve, sector and issuer in accordance with the benchmark Use index replication for UK gilts; stratified sampling for corporate bonds Enhanced Equity Seek to outperform their benchmark, using quantitative stock-selection techniques Invest in a sample of equities with characteristics similar to the benchmark, while seeking to limit unintended risk exposures Model-driven stock evaluation process, using fundamental (value, growth, and quality) and technical (sentiment) factors Low turnover to minimise transaction costs Active Equity A selection of funds that target returns above the benchmark index Quantitative stock-selection strategy provides core exposure to designated developed and emerging market equities Model-driven stock evaluation process, using fundamental (value and growth) and technical (sentiment) factors More concentrated than enhanced equity portfolios, with fewer holdings and larger positions Smart Beta Our Smart Beta funds represent passive investment opportunities beyond those that track traditional market cap-weighted indices Fundamental Index funds utilise an alternative approach to security weighting, targeting low price-to-fundamental factor stocks A proprietary strategy designed to identify both high quality and low volatility stocks across developed and emerging markets Emerging Markets Index and active approaches to emerging markets equities Emerging Markets Select Equity Fund uses a proprietary stock selection model to build a concentrated portfolio of stocks

7 Liability-Driven Investing Single Stock Gilt Funds offer exposure to long-duration gilts, to help extend portfolio duration and hedge inflation The funds are designed to be a simple, liquid and cost effective way to extend the duration of asset portfolios to achieve a better match between scheme assets and liabilities Can be used in tailored combinations with Leveraged Gilt and Swap Funds (available to qualifying investors) to suit the objectives and risk tolerances of the scheme The funds can also complement conventional bond index funds to help structure stable and cost effective hedging portfolios Currency Hedged Equity Currency volatility, a by-product of investing in international assets, can be reduced through currency hedging using forward foreign exchange contracts an approach which is available within a number of index equity funds in MPF Passive hedges of 50%, 75% and 100% to Sterling available Dynamic strategic currency hedging also available seeking to reduce currency losses without necessarily eliminating currency gains Dynamic strategic hedging systematically adjusts the currency hedge ratio to Sterling or Euro between 0% 100% Cash Preservation of capital is paramount across cash management strategies MPF cash funds invest in high-quality money market instruments, as rated by external ratings agencies Specialist credit research analysts approve and monitor all issuers Diversified Diversified Beta and Diversified Alternatives seek to reduce the risk of exposure to a single asset class by offering a portfolio of traditional equities and bonds as well as property, hedge funds, commodities, high yield and emerging market debt, infrastructure and other alternative asset classes The portfolios are structured with passively implemented strategies in order to target lower costs A Dynamic Diversified Fund (DDF) is also available this is an absolute return fund that proactively switches between defensive, medium and higherrisk assets based on market conditions, targeting timely and profitable exposure to the right assets at the right time Investors can use the DDF as the growth-seeking asset in their portfolio in place of a traditional equity allocation, as a complement to an LDI-type strategy or as a core, default investment through the accumulation phase of a DC plan Timewise Target Retirement Funds Timewise Target Retirement Funds are designed to be a comprehensive default investment option for DC scheme members Asset allocation for the funds is based on our proprietary investment glidepath that seeks to ensure DC scheme members are invested in the right asset classes at the right time throughout all the phases of their working lives With an intelligently devised and value driven combination of assets, the funds can offer a powerful and flexible investment solution for people in workplace pension schemes The Timewise Target Retirement Choice Fund provides flexibility for members choosing to remain invested beyond retirement.

8 ADMINISTRATION BENEFITS Cost Effective The economies of scale that can be gained from investors pooling their assets has been accepted by pension funds for many years. Within MPF, transaction costs are kept low by seeking to deal in a cost-effective way. This can involve using the internal State Street crossing network, as well as other trading strategies. We seek to match buyers and sellers at the unit level, allowing them to cross with each other at no cost. We do not set a minimum size for clients to access this crossing opportunity. Clients invest in MPF by means of an insurance contract and because of this, management fees are not generally subject to VAT. Tax Efficient Assets held within MPF s unit-linked funds are classified as pension business for UK tax purposes. Any dividends received and capital gains arising are therefore exempt from UK tax. You should consult with your tax or financial advisor to ensure that your scheme qualifies to invest in MPF s range of funds. Securities Lending The State Street securities lending programme covers equity and fixed income assets around the world. MPF funds participate in the programme, providing the potential to generate incremental returns for investors in a risk controlled manner. The programme is managed by State Street Securities Finance (SSSF), a division of State Street s Global Markets area. SSSF is a key global player in securities lending, with lendable assets of approximately $3.24 trillion, 131 borrower relationships and more than 258 employees dedicated to securities lending activities. 5 At present, lending in relation to which State Street acts as lending agent for MPF is collateralised by non-cash collateral with a margin of 102% 110%. 6 The loans are marked to market on a daily basis. Collateral types and collateralisation levels are under continual review. MPF benefits from a counterparty default indemnity from State Street Bank & Trust Company. Revenue generated from securities lending is allocated 70% to MPF in respect of the investors and 30% to State Street, which pays all costs associated with the lending programme. Please contact us to find more about the potential benefits of securities lending within MPF, as well as our risk management process. Proxy Voting and Corporate Governance We believe companies that adopt robust and progressive governance and sustainability practices should be better positioned to generate long-term value and manage risk. The informed exercise of voting rights, coupled with targeted and value-driven engagement, is a critical mechanism of creating value for our clients and fulfilling our fiduciary responsibilities. We regularly engage with companies to address topics of strategy, board governance and risk management, including material social and environmental considerations, and exercise our full voting rights in an informed and considered manner based upon global and market specific best practice. Pension schemes invested in segregated mandates can implement their own voting policies or designate SSGA to exercise voting rights in accordance with our guidelines. Our Proxy Voting and Corporate Governance Policy, Stewardship Compliance Statement and annual and quarterly reviews are available on a dedicated section of our website, ssga.com. In-Specie Contributions The life policy structure of MPF may enable investors to transfer stock into and out of the fund free of UK stamp duty. Any resulting reduction in entry and exit costs can be a major competitive advantage over other pooled vehicles. Transferring assets in-specie may significantly reduce the potential for performance drag for institutional investors when they change asset managers. It may help investors to minimise costs when changing their asset managers, while retaining market exposure. Investors should obtain their own tax advice before investing in MPF. Transition Management Making the decision to change investment managers is often only the beginning of the process. The practical steps to implement a change in asset allocation strategy or investment manager can sometimes be complex, timeconsuming and costly for investors. We have significant experience in organising portfolio conversions and aim to make the process as straight forward and cost effective as possible. Whether you make direct in-specie transfers into our pooled funds (conversions), or you require major portfolio restructuring, State Street can provide the support you need in relation to legal requirements, portfolio analysis, cost minimisation, asset allocation and co-ordination with the out-going manager. Once you have decided on your investment strategy, we will review the transition management options with you and work to ensure a smooth transition. 5 As at 31 December Not all borrower relationships are used in relation to the lending of MPF s securities. 6 As at 31 December 2015.

9 INVESTING AND DEALING Investing Once you have decided to invest in MPF, we send you the legal documentation, including an instruction letter, which tells us the funds you wish to invest in, and how you want your portfolio to be managed. Any questions or issues that may arise with the documentation can be discussed with your Client Relationship Manager. Where necessary, our dedicated New Business Team will initiate transfer arrangements including communication with the outgoing investment manager. Fees Please contact your relationship manager for details about fees. In addition to the Policy Charge other costs are incurred by the MPF sub-funds. Details of these costs are set out in the legal documentation and on the Client s Corner section of ssga.com Unit Allocation and Dealing Spreads MPF allocates notional units to the policyholders based on the underlying notional unit buy (offer) price. This is calculated using the middle market price plus transaction costs. The redemption of units is based on the underlying notional unit sell (bid) price, that is, the middle market price minus transaction costs. The dealing spread the difference between the buy and sell price is affected by market conditions. For information on the latest indicative spreads, please contact your relationship manager. In the case of as of (historically priced) MPF funds, depending on the net direction of the investors flows, the dealing price for investors in the fund will swing to offer (if net subscriptions) or bid (if net redemptions). Crossing When there are buyers and sellers of units, we seek to match them in a process called crossing. Buyers and sellers are allocated the middle market price, without the addition (deduction) of dealing expenses on the portion of the trade that is crossed. The uncrossed portion is charged at normal spreads. A single contribution may therefore include a crossed element (called a swap buy ) and an uncrossed element (a buy ). Crossing is applied on a weighted basis across all transactions for all clients. MPF does not receive any fee nor retain any profits from crossing transactions. In-specie transfers We welcome in-specie transfers for new investments. Whenever possible, we will transfer the stock to the appropriate funds, valued at middle market prices, unless the fund manager believes that a direct transfer would affect the fund s ability to meets its performance objectives. We work with the client to maximise the number of stocks transferred and propose trading strategies for any stock that cannot be absorbed. There may be associated costs, which are charged to the incoming client. When a client makes a redemption, we may be able to give the new manager an in-specie stock transfer that is representative of the fund. This will depend on market conditions and the size of the transfer. In these instances, the client would generally bear the custodian costs. Valuations Middle market prices are used to calculate valuations and investment performance, except for some bond funds. All sub-funds are priced at close of business. Bid-based reporting can be provided on request. Settlement Sell and buy orders settle on the dealing date plus three working days. The late arrival of monies to purchase notional units, or the early settlement of redemptions, may be subject to an interest charge. Notification deadline For all funds except 'As of' or historic-priced funds, instructions to buy or sell notional units must be received by 9:30am, one day prior to the dealing date. Please refer to the Policy Document for details relating to 'As of' funds.

10 INVESTOR COMMUNICATIONS Client Service Our dedicated Shareholder Services team is available to answer questions, take dealing instructions and process transactions. Responsive and flexible, they aim to handle all client queries within 24 hours. Shareholder Services is able to address most transactional issues. However, when investors wish to discuss investment updates, strategy changes, asset allocation, benchmarks or legal matters, a dedicated Client Relationship Manager should be the first point of contact. Client Relationship Managers also update investors on fund developments and attend trustee meetings when requested. Contact information is provided on the inside front cover of this document. Client Reporting Every quarter, clients receive a detailed report about their investment. Fund factsheets provide performance data, a performance review, an asset allocation summary and relevant market reviews. LIABILITY DRIVEN INVESTMENT State Street Global Advisors combines transparency and value with expert partnership for a complete liability matching solution. This information is also available online at ssga.com Online Access Clients can view their fund information and other data online via our website, ssga.com. This allows access to Client s Corner, a password-protected area containing investment data, as well as information on our products and research not available on our public website. With their clients consent, consultants may also access this data via Consultant s Corner. The following information and facilities are available: View portfolio value, transaction history and investment performance Obtain the most recent Embedded Costs and Spreads applicable for the Funds THINKING DIFFERENTLY Ideas for a Low-Growth World OUTLOOK What does 2016 hold for the world s economies and markets? MORE FROM YOUR CORE How to shape your portfolio for the world ahead. MASTERING VOLATILITY Volatility will be here for a while yet. What happens next? EUROPE OUTPERFORMS Conditions are good for European growth. How can you profit from it? TOO EARLY TO CALL TIME US earnings appear to have stalled but there s still room for growth. KEYS TO IGNITION A trio of factors hold the key to success in Emerging Markets. CREDIT WHERE IT S DUE Investment grade and high yield hold promise for Submit requests for bespoke reports Download data to incorporate into other documents View and print factsheets Access information on our investment capabilities, thought leadership and in-house research in various media formats, including video links to the Shareholder Services team and your Client Relationship Manager

11 Clients can view their fund information and other data online via our website at ssga.com

12 FUND RANGE Our range of MPF funds is shown below and these can be used in any combination. Further information about each of the funds, including investment policies and latest performance data can be found in the quarterly fund factsheets, accessible online at ssga.com This section is accurate as at 31 December 2015, but is subject to change. Please contact us to find out the current position regarding information in this section. Index Equity Funds Benchmark 1 Indexation Methodology 2 UK Equity FTSE All Share Replication World UK Equity FTSE All-World UK Replication North America Equity FTSE All-World Developed North America Replication Europe ex UK Equity FTSE All-World Developed Europe ex UK Replication Japan Equity FTSE All-World Japan Replication Asia Pacific ex Japan Equity FTSE All-World Developed Asia Pacific ex Japan Replication Middle-East and Africa Equity FTSE All-World Developed Middle-East and Africa Replication Emerging Markets Equity FTSE All-World All Emerging Replication/ Stratified Sampling Advanced Emerging Markets Equity FTSE All-World Advanced Emerging Replication/ Stratified Sampling Smart Beta Funds Benchmark 1 Indexation Methodology 2 Fundamental Index Global Equity FTSE RAFI All-World 3000 Optimised Sampling Fundamental Index World FTSE RAFI Developed 1000 Optimised Sampling Developed Equity All World Equity (Hedged) Low Volatility / SSGA Global Low Volatility/High Quality Screened High Quality Screened Index Multi-Factor Global Equity Index Sub-Fund SSGA Global Developed Multi-Factor Index Fixed Income Funds Benchmark 1 Indexation Methodology 2 UK Conventional Gilts All Stocks FTSE Actuaries UK Gilts British Government All Stocks Replication UK Conventional Gilts Over 15 Years FTSE Actuaries UK Gilts British Government Over 15 Years Replication UK Index Linked Gilts All Stocks FTSE Actuaries UK Gilts British Government Index Linked All Stocks Replication UK Index Linked Gilts Over 5 Years FTSE Actuaries UK Gilts British Government Index Linked Over 5 Years Replication UK Index Linked Gilts Over 15 Years FTSE Actuaries UK Gilts British Government Index Linked Over 15 Years Replication Sterling Non Gilts Bond All Stocks Barclays Sterling Aggregate 100mm Non Gilts Stratified Sampling Sterling Non Gilts Bond Over 15 Years Barclays Sterling Aggregate Sterling 100mm Non Gilts Over 15 Years Stratified Sampling Benchmark 1 Structure Emerging Markets Dividend S&P Emerging Markets Dividend Opportunities (ETF) Euro Dividend Aristocrats S&P Euro High Yield Dividend Aristocrats (ETF) UK Dividend Aristocrats S&P UK High Yield Dividend Aristocrats (ETF) US Dividend Aristocrats S&P High Yield Dividend Aristocrats (ETF) Global Dividend Aristocrats S&P Global Dividend Aristocrats (ETF) Emerging Markets Corporate Bond BofA Merrill Lynch Emerging Markets Diversified Corporate ex-144a (ETF) Emerging Markets Inflation Linked Barclays Emerging Markets Inflation Linked 20% Capped (ETF) Local Bond Index Emerging Markets Local Bond Barclays Emerging Markets Local Currency Liquid Government (ETF) All World Developed Equity Hedged 90% FTSE All World Developed Index, with 50% of the non-sterling Target Volatility currency exposure hedged back to Sterling; 10% 7-Day LIBID GBP Emerging Markets Equity Target Volatility FTSE All World All Emerging Index GBP 7-day LIBID Asia Pacific Equity FTSE All-World Developed Asia Pacific

13 Fund Range (continued) Balanced 80% Global Equity (50/50), 6% UK Conventional Gilts All Stocks, 6% Sterling Non Gilts All Stocks, 3% UK Index Linked Gilts All Stocks, 5% Sterling Liquidity Global Equity (70/30) 70% FTSE All Share and 30% FTSE World ex UK Global Equity (50/50) 50% UK Equity Index; 16.7% North America Equity Index ;16.7% Europe ex UK Equity Index; 8.3% Japan Equity Index and 8.3% Asia Pacific ex Japan Equity Index sub-fund International Equity FTSE World ex UK All World Developed Equity FTSE All-World Developed All World Equity FTSE All-World Diversified Funds Benchmark 1 Structure Dynamic Diversified Libor 1 Month GBP Diversified Beta 60% FTSE All-World Developed 40% FTSE Gilts All Stocks Diversified Alternatives GBP 7-day LIBID Active Equity Funds Benchmark 1 Emerging Markets Select MSCI Emerging Markets Free North America Active Equity FTSE All-World Developed North America Europe ex UK Active Equity FTSE All-World Developed Europe ex UK Enhanced Equity Funds Benchmark 1 Asia Pacific Enhanced Equity FTSE All-World Developed Asia Pacific Europe ex UK Enhanced Equity Index FTSE All-World Developed Europe ex UK Cash Funds Benchmark 1 Structure Sterling Liquidity GBP 7-day LIBID (Sterling London Interbank 7 Day Deposit Rate) Euro Liquidity EUR 7-day LIBID (Euro London Interbank 7 Day Deposit Rate) Currency Hedged Index Funds Benchmark 1 Structure North America Equity (100% Hedged) FTSE All-World Developed North America (100% Hedged to Sterling) + North America Equity (75% Hedged) FTSE All-World Developed North America (75% Hedged to Sterling) North America Equity (50% Hedged) FTSE All-World Developed North America (50% Hedged to Sterling) Europe ex UK Equity (100% Hedged) FTSE All-World Developed Europe ex UK (100% Hedged to Sterling) + Europe ex UK Equity (75% Hedged) FTSE All-World Developed Europe ex UK (75% Hedged to Sterling) Europe ex UK Equity (50% Hedged) FTSE All-World Developed Europe ex UK (50% Hedged to Sterling) Japan Equity (100% Hedged) FTSE All-World Japan (100% Hedged to Sterling) + Japan Equity (75% Hedged) FTSE All-World Japan (75% Hedged to Sterling) Japan Equity (50% Hedged) FTSE All-World Japan (50% Hedged to Sterling) Asia Pacific ex Japan Equity (100% Hedged) FTSE All-World Developed Asia Pacific ex Japan (100% Hedged to Sterling) + Asia Pacific ex Japan Equity (75% Hedged) FTSE All-World Developed Asia Pacific ex Japan (75% Hedged to Sterling) Asia Pacific ex Japan Equity (50% Hedged) FTSE All-World Developed Asia Pacific ex Japan (50% Hedged to Sterling) Middle-East and Africa Equity (100% Hedged) FTSE All-World Developed Middle-East and Africa (100% Hedged to Sterling) + Middle-East and Africa Equity (75% Hedged) FTSE All-World Developed Middle-East and Africa (75% Hedged to Sterling) Middle-East and Africa Equity (50% Hedged) FTSE All-World Developed Middle-East and Africa (50% Hedged to Sterling) Global Equity (50/50) (50% Hedged) 50% FTSE All Share, 50% FTSE World ex UK, (50% Hedged to Sterling) International Equity (100% Hedged) FTSE World ex UK (100% Hedged to Sterling) International Equity (75% Hedged) FTSE World ex UK (75% Hedged to Sterling) International Equity (50% Hedged) FTSE World ex UK (50% Hedged to Sterling) Fundamental Index Global Equity (100% Hedged) FTSE RAFI All-World 3000 (100% Hedged to Sterling) +

14 Fund Range (continued) Fundamental Index Global Equity (75% Hedged) All World Equity (Hedged) Low Volatility/High Quality Screened Index Sub-Fund Multi-Factor Global Equity (Hedged) Index Sub-Fund FTSE RAFI All-World 3000 (75% Hedged to Sterling) SSGA Global Low Volatility/High Quality Screened Index (100% Hedged to Sterling) SSGA Global Developed Multi-Factor Index (100% Hedged to Sterling) + Dynamic Currency Hedged Index Funds Benchmark 1 Structure North America Equity (GBP Dynamic Currency Hedged) Europe ex UK Equity (GBP Dynamic Currency Hedged) Japan Equity (GBP Dynamic Currency Hedged) Asia Pacific ex Japan Equity (GBP Dynamic Currency Hedged) International Equity (GBP Dynamic Currency Hedged) FTSE All-World Developed North America (50% Hedged to Sterling) + FTSE All-World Developed Europe ex UK (50% Hedged to Sterling) + FTSE All-World Japan (50% Hedged to Sterling) + FTSE All-World Developed Asia Pacific ex Japan (50% Hedged to Sterling) + FTSE World ex UK (50% Hedged to Sterling) + As Of Priced Funds 3 Benchmark 1 Structure As Of Priced UK Conventional Gilts All Stocks Index As Of Priced (Net) All World Developed Equity Hedged Target Volatility Sub-Fund As Of Priced (Net) Emerging Market Equity Target Volatility Sub-Fund As Of Priced (Net) Sterling Non-Gilts Bond All Stocks Index Sub-Fund As Of Priced (Net) UK Index Linked Gilts All Stocks Index Sub-Fund As Of Priced (Net) Sterling Liquidity Sub-Fund As Of Priced (Net) UK Conventional Gilts All Stocks Index Sub-Fund As Of Priced (Net) International Equity Index Sub-Fund As Of Priced (Net) Emerging Markets Equity Index Sub-Fund As Of Priced (Net) UK Equity Index Sub-Fund As Of Priced (Net) Balanced Index Sub-Fund As Of Priced (Net) Fundamental Index Global Equity Sub-Fund As Of Priced UK Index Linked Gilts Over 5 Years FTSE Actuaries UK Gilts British Government All Stocks 90% FTSE All World Developed Index, with 50% of the non-sterling currency exposure hedged back to Sterling 10% 7-Day LIBID GBP FTSE All World All Emerging Index; 7-Day LIBID GBP Barclays Sterling Aggregate 100 mm Non Gilts FTSE Actuaries British Government Index Linked All Stocks GBP 7-day LIBID (Sterling London Interbank 7 Day Deposit Rate) FTSE Actuaries British Government All Stocks FTSE World ex UK FTSE All-World All Emerging FTSE All-Share 80% Global Equity (50/50), 6% UK Conventional Gilts All Stocks, 6% Sterling Non Gilts All Stocks, 3% UK Index Linked, Gilts All Stocks, 5% Sterling Liquidity FTSE RAFI All World 3000 FTSE Actuaries UK Gilts British Government Index Linked Over 5 Years Replication Replication As Of Priced Diversified Beta 60% FTSE All-World Developed, 40% FTSE Gilts All Stocks As Of Priced Global Equity (30/70) 30% FTSE All Share, 70% FTSE World ex UK (75% Hedged to Sterling) As Of Priced Sterling Liquidity GBP 7-day LIBID (Sterling London Interbank 7 Day Deposit Rate) As Of Priced Pre-Retirement As Of Priced All World Equity (75% Hedged) Index As Of Priced Fundamental Index Global Equity (75% Hedged) As Of Priced All World Equity (Hedged) Low Volatility/High Quality Screened Index As Of Priced Fundamental Index Global Equity (100% Hedged) 70% Sterling Non-Gilts Bonds Over 15 Years; 15% UK Conventional Gilts Over 15 Years; 5% UK Conventional Gilt 2049; 5% UK Conventional Gilt 2055 and 5% UK Conventional Gilt 2060 FTSE All World Index (75% Hedged to Sterling) FTSE RAFI All World 3000 Index (75% Hedged to Sterling) SSGA Global Low Volatility/High Quality Screened Hedged FTSE RAFI All World 3000 (100% Hedged to Sterling) As Of Priced Dynamic Diversified Libor 1 Month GBP Net Funds 4 Benchmark 1 Structure Net UK Conventional Gilts All Stocks FTSE Actuaries UK Gilts British Government All Stocks Replication Net UK Conventional Gilts Over 15 Years FTSE Actuaries UK Gilts British Government Over 15 Years Replication Net Sterling Non Gilts Bond All Stocks Barclays Sterling Aggregate 100mm Non Gilts Stratified Sampling

15 Fund Range (continued) Net Balanced Index Net Global Balanced (50/50) Net Global Equity (50% UK / 50% International) Net Global Equity (50/50) (50% Hedged) 80% MPF Global Equity 50/50, 6% MPF UK Conventional Gilts All Stocks, 6% MPF Sterling non Gilts Bond All Stocks, 3% MPF UK Index Linked Gilts All Stocks, 3% MPF Sterling Liquidity 25% FTSE All Share 25% FTSE World ex UK 50% FTSE Actuaries UK Gilts British Government Over 15 Years 50% FTSE All Share 50% FTSE World ex UK 50% FTSE All Share 50% FTSE World ex UK (50% Hedged to Sterling) Net Dynamic Diversified Libor 1 Month GBP Net International Equity Index FTSE World ex UK Net Sterling Liquidity GBP 7-day LIBID (Sterling London Interbank 7 Day Deposit Rate) Net UK Equity Index FTSE All-Share Replicated Net Index Linked Gilts Over 5 Years Index FTSE Actuaries British Government Index Linked Gilts Over 5 Years Replicated Liability-Driven Investing Benchmark 1 Structure UK Conventional Gilt Dec 2049 Barclays UKTI 4.25% Dec 49 TRI Replication UK Conventional Gilt Dec 2055 Barclays UKTI 4.25% Dec 55 TRI Replication UK Conventional Gilt Jan 2060 Barclays UKTI 4.00% Jan 60 TRI Replication UK Index Linked Gilt Nov 2027 Barclays UKTI 1.250% Nov 27 TRI Replication UK Index Linked Gilt Nov 2032 Barclays UKTI 1.250% Nov 32 TRI Replication UK Index Linked Gilt Nov 2037 Barclays UKTI 1.125% Nov 37 TRI Replication UK Index Linked Gilt Nov 2042 Barclays UKTI 0.625% Nov 42 TRI Replication UK Index Linked Gilt Nov 2047 Barclays UKTI 0.75% Nov 47 TRI Replication UK Index Linked Gilt Mar 2050 Barclays UKTI 0.500% Mar 50 TRI Replication UK Index Linked Gilt Nov 2055 Barclays UKTI 1.25% Nov 55 TRI Replication UK Index Linked Gilt Mar 2062 Barclays UKTI 0.375% Mar 62 TRI Replication UK Index Linked Gilt Mar 2068 Barclays UKTI 0.125% Mar 68 TRI Replication Pooled Swap Funds Leveraged Gilt Funds Transition Fund Please contact us for details Please contact us for details Please contact us for details Timewise Target Retirement Funds 5 Timewise Target Retirement 2015 Timewise Target Retirement 2020 Timewise Target Retirement 2025 Timewise Target Retirement 2030 Timewise Target Retirement 2035 Timewise Target Retirement 2040 Timewise Target Retirement 2045 Timewise Target Retirement 2050 Timewise Target Retirement 2055 Timewise Target Retirement 2060 Timewise Target Retirement Choice 1 Where relevant, performance is measured against a total return benchmark, net of withholding tax payable by a UK pension fund investor. 2 Indexation Methodologies: Replication This methodology builds a portfolio that mirrors the benchmark, so that the stock weights of the portfolio are almost identical to the stock weights of the index. A portfolio that is replicated should not require any trading until something changes, either in the portfolio, such as a cash flow, or in the index. This tends to be the most effective and efficient indexing approach when the portfolio has sufficient asset size and the index is liquid. Stratified Sampling When full replication is not possible we utilise a stratified sampling strategy. This involves investing in a sufficiently diversified portfolio with the aim of minimising risk exposures and limiting trading costs to achieve consistent performance and tracking error. Optimised Sampling Under this methodology, the portfolio owns a broad representative sample of the index. It analyses the historical relationship of a range of financial variables and how these factors impact security movement. The methodology is typically applied when the asset size of a portfolio is small, when the benchmark is extremely broad with many illiquid constituents, or when certain stocks or industry groups are restricted. 3 Historically priced funds available only to Defined Contribution schemes using fund platforms, enabling the policy holder to purchase and redeem units on an 'as of' (historical) priced basis basis. 4 Net-of-management fee funds available to pension schemes investing in MPF directly or via an administrator. 5 Available to Defined Contribution schemes. Policyholders can purchase and redeem units on an as of (historical) priced basis.

16 ssga.com For institutional use only. Not for use with the public. State Street Global Advisors Limited. Authorised and regulated by the Financial Conduct Authority. Registered in England. Registered No VAT No Registered office: 20 Churchill Place, Canary Wharf, London E14 5HJ. T +44 (0) F +44 (0) The views expressed are the views of Global Product and Marketing only through the period ended 31 December 2015 and are subject to change based on market and other conditions. The opinions expressed may differ from those with different investment philosophies. The information provided does not constitute investment advice as such term is defined under the Markets in Financial Instruments Directive (2004/39/EC) and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell any investment. 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Investing involves risk including the risk of loss of principal. Risk associated with equity investing include stock values which may fluctuate in response to the activities of individual companies and general market and economic conditions. International Government bonds and corporate bonds generally have more moderate shortterm price fluctuations than stocks, but provide lower potential long-term returns. The use of leverage, as part of the investment process, can multiply market movements into greater changes in an investment s value, thus resulting in increased volatility of returns. Bonds generally present less short-term risk and volatility than stocks, but contain interest rate risk (as interest rates rise bond prices usually fall); issuer default risk; issuer credit risk; liquidity risk; and inflation risk. These effects are usually pronounced for longer-term securities. Any fixed income security sold or redeemed prior to maturity may be subject to a substantial gain or loss. Asset Allocation is a method of diversification which positions assets among major investment categories. Asset Allocation may be used in an effort to manage risk and enhance returns. It does not, however, guarantee a profit or protect against loss. Diversification does not ensure a profit or guarantee against loss. Investing in foreign domiciled securities may involve risk of capital loss from unfavorable fluctuation in currency values, withholding taxes, from differences in generally accepted accounting principles or from economic or political instability in other nations. Investments in emerging or developing markets may be more volatile and less liquid than investing in developed markets and may involve exposure to economic structures that are generally less diverse and mature and to political systems which have less stability than those of more developed countries. 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The Funds may use financial derivatives instruments for currency hedging and to manage the portfolio efficiently. The Funds may purchase securities that are not denominated in the share class currency. Hedging should mitigate the impact of exchange rate fluctuations however hedges are sometimes subject to imperfect matching which could generate losses. Information represented in this piece does not constitute legal, tax, or investment advice. Investors should consult their legal, tax, and financial advisors before making any financial decisions. These investments may have difficulty in liquidating an investment position without taking a significant discount from current market value, which can be a significant problem with certain lightly traded securities. Assumptions and forecasts used by SSGA in developing the Portfolio s asset allocation glide path may not be in line with future capital market returns and participant savings activities, which could result in losses near, at or after the target date year or could result in the Portfolio not providing adequate income at and through retirement. The whole or any part of this work may not be reproduced, copied or transmitted or any of its contents disclosed to third parties without SSGA's express written consent. Actively managed funds do not seek to replicate the performance of a specified index The Fund is actively managed and may underperform its benchmarks. An investment in the Fund is not appropriate for all investors and is not intended to be a complete investment program. Investing in the Fund involves risks, including the risk that investors may receive little or no return on the investment or that investors may lose part or even all of the investment. This document should be read in conjunction with its Key Investor Information Document/Prospectus. All transactions should be based on the latest available Key Investor Information Document/Prospectus which contains more information regarding the charges, expenses and risks involved in your investment. SSGA Timewise Target Date Funds TM are designed for investors expecting to retire around the year indicated in each fund s name. When choosing a Fund, investors should consider whether they anticipate retiring significantly earlier or later than age 65 even if such investors retire on or near a funds approximate target date. There may be other considerations relevant to fund selection and investors should select the fund that best meets their individual circumstances and investment goals. The funds asset allocation strategy becomes increasingly conservative as it approaches the target date and beyond. The investment risks of each Fund change over time as its asset allocation changes. Assumptions and forecasts used by SSGA in developing the Portfolio s asset allocation glide path may not be in line with future capital market returns and participant savings activities, which could result in losses near, at or after the target date year or could result in the Portfolio not providing adequate income at and through retirement. Derivative investments may involve risks such as potential illiquidity of the markets and additional risk of loss of principal. Securities lending programs and the subsequent reinvestment of the posted collateral are subject to a number of risks, including the risk that the value of the investments held in the may decline in value and may at any point be worth less than the original cost of that investment. Currency Risk is a form of risk that arises from the change in price of one currency against another. Whenever investors or companies have assets or business operations across national borders, they face currency risk if their positions are not hedged. Managed Pension Fund Limited is not in any way sponsored, endorsed, sold or promoted by FTSE International Limited ( FTSE ) or by the London Stock Exchange Plc (the Exchange ) or by The Financial Times Limited ( FT ) and neither FTSE nor Exchange nor FT makes any warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the FTSE Indices and/or the figure at which the said Indices stands at any particular time on any particular day or otherwise. The Indices are compiled and calculated by FTSE. However, neither FTSE nor Exchange nor FT shall be liable (whether in negligence or otherwise) to any person for any error in the Index and neither FTSE or Exchange or FT shall be under any obligation to advise any person of any error therein. Distributor: State Street Global Markets, LLC, member FINRA, SIPC, a wholly owned subsidiary of State Street Corporation. References to State Street may include State Street Corporation and its affiliates. Certain State Street affiliates provide services and receive fees from the SPDR ETFs. FTSE is a trademark of the Exchange and FT and is used by FTSE under licence. All- World and All-Share, are trademarks of FTSE. Managed Pension Fund Limited is not in any way sponsored, endorsed, sold or promoted by FTSE International Limited ( FTSE ), by the London Stock Exchange Plc (the Exchange ), The Financial Times Limited ( FT ) or by Research Affiliates LLC ( RA ) (collectively the Licensor Parties ), and none of the Licensor Parties make any warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the FTSE RAFI All World 3000 Index (the Index ) and/or the figure at which the said Index stands at any particular time on any particular day or otherwise. The Index is compiled and calculated by FTSE in conjunction with RA. None of the Licensor Parties shall be liable (whether in negligence or otherwise) to any person for any error in the Index and none of the Licensor Parties shall be under any obligation to advise any person of any error therein. FTSE is a trade mark of the Exchange and the FT. Fundamental Index and RAFI All World 3000 Index trade names and patent-pending concept are the exclusive property of Research Affiliates, LLC. Patent pending: US A1, US A1, US A1, US A State Street Corporation. All Rights Reserved. ID4644-EUMKT Exp. Date: 31/01/2017