Estimated Growth Rate and Unit Price Adjustments

The EGR is the annual percentage rate used, together with the fund charges, to calculate the increase to the unit prices at the end of each working day. Standard Life calculate the EGR based on long-term market growth expectations of the underlying assets. The EGR is reviewed on a quarterly basis. Historic and current rates can be found here.

Investment performance figures are shown on the client's account and historic EGRs are available here.

We have set growth rates for money market instruments (including cash), bond and equity funds which are recalculated at the start of each tax year. Each investment on the platform is aligned to one of these growth rates. The Standard Life Smoothed Return Pension Fund is a multi asset fund, which are aligned to bond growth rates. The assumed growth rate is a weighted rate and is indicative only and does not represent the real actual long-term return potential of each asset. The purpose of the illustration is to show the likely effect of cost and charges on the client's investment for year 1. The figures take account of inflation at an assumed rate of 2.00%, which has the effect of reducing the investment return. Inflation could be lower or higher than this.

You can access the changes here.

Standard Life calculate the EGR based on long-term growth expectations of the underlying fund. A review of the EGR is carried out typically on a quarterly basis, but may undergo an additional ad-hoc review if required.

If the underlying fund unit price rises to be above 110% of the unit price of the smoothed fund then we will make an adjustment. This adjustment increases the unit price of the smoothed fund to be 2.5% lower than the underlying fund’s unit price.

If the underlying fund unit price falls to be below 90% of the unit price of the smoothed fund then we will make an adjustment. This adjustment would decrease the unit price of the smoothed fund to be 2.5% higher than the underlying fund’s unit price.

We also carry out twice monthly monitoring of the unit prices of the Smoothed Fund and the Underlying Fund, which can also result in changes to the unit price of the Smoothed Fund. These twice monthly reviews take place on the 5th and 20th of the month.

If the review date is due to take place on a non-business day such as a bank holiday, we move the review to the next working day. This review is carried out after the daily monitoring review has taken place.

If the Underlying Fund unit price rises to be above 105% of the unit price of the Smoothed Fund then an adjustment will be made. This adjustment would increase the unit price of the smoothed Fund by halving the difference between the two unit prices. 

If the Underlying Fund unit price falls to be below 95% of the unit price of the Smoothed Fund then an adjustment will be made. This adjustment would decrease the unit price of the smoothed Fund by halving the difference between the two unit prices.

Current and historic EGRs and UPAs will be published here.