CSC Computer Sciences Ltd Pension Scheme (“the Scheme”)

Chair’s Statement of DC Governance for the period from 1 July 2019 to 30 June 2020 I am pleased to present the Trustee’s statement of governance, covering the period 1 July 2019 to 30 June 2020 for the money purchase benefits in the Scheme. This statement describes how the Trustee seeks to ensure that the Scheme is well-managed and delivers excellent services to members. The statement examines four key areas of the Trustee’s governance, namely:

• The investment strategy relating to the Scheme’s default arrangement; • The processing of core financial transactions; • Charges and transaction costs within the Scheme including the pounds and pence illustration of the compounding effect of charges; and • The Trustee’s compliance with the statutory knowledge and understanding requirements. In doing so, we provide the various statutory disclosures required by the Occupational Pension Schemes (Charges and Governance) Regulations 2015. Monitoring the overall quality of the Scheme arrangements is a complex task that the Trustee takes seriously. The Trustee is supported in this process, as well as the day-to-day business of running the Scheme, by Willis Towers Watson (the provider of administration and communications services for the Scheme), Premier Pensions (Scheme Secretary) and Mercer Limited (an independent advisor, covering governance, investment advice and wider Defined Contribution (‘DC’) matters). Post year-end Scheme merger Following the merger of Computer Sciences Corporation and the Enterprise Services business of Hewlett Packard Enterprise, DXC Technology Inc. (the ultimate parent company of the Principal Company), has been examining how the governance arrangements of the group’s pension schemes, including the CSC Computer Sciences Ltd Pension Scheme, can be improved and operating costs reduced. As a consequence of this review, DXC Technology put forward a proposal to the Trustee to merge the CSC Computer Sciences Ltd Pension Scheme into the CSC Computer Sciences Ltd 2005 Pension Scheme. Following careful due diligence and a review of its legal obligations, the Trustee agreed to the proposed merger with all assets, liabilities and responsibilities relating to the CSC Computer Sciences Ltd Pension Scheme transferring to the CSC Computer Sciences Ltd 2005 Pension Scheme. The merger completed on 12 October 2020 with work now underway to wind-up the trust of the CSC Computer Sciences Ltd Pension Scheme. Members of the Defined Contribution Section will see no change to their benefits or current investment arrangements as a consequence of the merger, with the Defined Contribution Section having effectively been ‘lifted and dropped’ into the post-merged Scheme. In addition, the corporate Trustee that governs the Scheme also governs the CSC Computer Sciences Ltd 2005 Pension Scheme so there will be a consistency in the governance approach.

The Scheme’s Default investment strategy The Statement of Investment Principles (SIP) The SIP sets out the aims and objectives of the Scheme’s investment strategy. In particular, it covers the Trustee’s investment policy for the Money Purchase assets, including objectives, risk and expected return and the design of the default investment strategy. A copy of the latest agreed SIP dated 16 September 2020 is attached as an appendix. The performance of all the funds, including those underlying the default investment strategy, is reviewed by the Trustee each quarter. The default investment strategy The current default investment strategy is a lifestyle arrangement, which is invested as follows: CSC Multi-Asset Default Fund, which invests Asset allocation during 75% LGIM* Global Equity Fixed Weight 30:70 Index Fund accumulation phase (75% GBP currency hedging for overseas funds) 25% LGIM* Diversified Fund Consolidation phase start 8 years before Target Retirement Age date 75% CSC Diversified Growth Fund (which invests 100% Asset allocation at end of in the LGIM Diversified Fund) and 25% CSC Targeting consolidation phase Cash Fund (which invests 100% in the LGIM Sterling Liquidity Fund) *LGIM = Legal & General Investment Management A formal review of the investment strategy of the default arrangement was undertaken on 15 August 2019. The following formed part of this review:

• The performance of the default investment strategy against the objectives and aims contained in the Statement of Investment Principles. • The design of the growth phase and de-risking phase of the default investment strategy. • The at-retirement allocation in the default. • The self-select fund range including the alternative lifestyle strategies that are available to members. • Implementation considerations. Following this review, the Trustee concluded that the arrangements in place remained suitable and no immediate changes would be made. Other investment strategies In addition to the default lifestyle arrangement, members have the option to select from two additional lifestyle strategies, one suitable for a member wishing to target an annuity purchase at retirement and one suitable for a member wishing to use their individual member account to provide one or more cash lump sums. Full details are included in the SIP. Other funds that regulations require to be treated as default arrangements There are four additional funds that are deemed a “default arrangement” due to previous mapping exercises carried out by the Trustee and where members have not subsequently re-affirmed the investment selection. These funds are listed below:

• CSC All Shares Adventurous Fund (Active) • CSC Targeting Cash (following a mapping exercise in August 2020) • CSC AVC Multi-Asset Fund (following a mapping exercise in August 2020) • CSC Liquidity AVC Fund (following a mapping exercise in August 2020) Whilst these funds are not part of the Scheme’s default investment strategy, the Trustee administers the fund as technically constituting a default arrangement and in line with the governance requirements that relate to such arrangements, including an annual cap on charges (excluding transaction costs) of 0.75% of assets and the duty to review the fund at least every three years.

Processing core financial transactions The Trustee has a specific duty to ensure that core financial transactions in relation to money purchase benefits are processed promptly and accurately. The Pensions Regulator lists core financial transactions as including:

• Receipt and investment of contributions

• Transfer of member assets into and out of the Scheme

• Transfers between different investments within the Scheme

• Payments to and in respect of members During the last Scheme year, the Trustee ensured the core financial transactions of the Scheme were processed promptly and accurately by:

• Appointing a professional third party administrator, Willis Towers Watson, to undertake all administration and record keeping duties. As part of that model, Willis Towers Watson undertakes a daily reconciliation of all bank transactions. They also have a system of authorised signatories in force to control payments from the Trustee’s bank account. No banking errors were identified for the year in question. • Having an agreement with their administration service provider (Willis Towers Watson) committing them to Scheme specific service level agreements (“SLAs”) and having the service provider report on their performance quarterly against the SLAs above. SLAs relating to core financial transactions included: Event SLA (days) Deaths 5 Retirement Settlements 5 Transfer Out Completion 5 Transfer In Completion 10 Pension Sharing 5 Investment Decision 5

The SLA performance over the year was 81% in Q3 2019, 87% in Q4 2019, 91% in Q1 2020 and 85% in Q2 2020. The Trustee view is that the administration performance was on an improving trend during the year, but the final quarter of the Scheme year (Q2 2020) was impacted by COVID-19 and the need for the administrator to prioritise key financial transactions at the expense of some regular services, such as for handling transfer and retirement enquiries and general correspondence. The administrators have transferred work to a specialist DC team following the Scheme year-end and the Trustee anticipates a return to target service levels during the next Scheme year and will monitor performance closely. • However, the level of member complaints has been low and monthly processes have been completed in a timely and accurate manner. In addition, the administrators have confirmed that no statutory deadlines relating to core financial transactions have been breached. • Ensuring that appropriate internal controls are in place with Willis Towers Watson by receiving and reviewing AAF01/06 audit reports. The latest report for the year to 30 September 2019, which was shared with the Secretary to the Trustee in October 2020, confirmed that the administrator’s description of their control procedures covering their administration and governance activities was fairly presented and that controls were suitably designed. There are 15 instances of control objective exceptions highlighted in the AAF report, 9 which are unique and 6 are in respect of controls that are replicated and applicable across multiple control areas; however, these exceptions were minor and would not be considered to have a direct impact on the Scheme. o A number of the internal controls rely on the administrator and payroll systems in place that perform tasks automatically. In addition, there are a number of manual checks carried out by the administrator; these include: . Contributions due are agreed to the cash received into the trustee bank account each monthly. . Monthly reconciliations between the contribution remittance and the schedule of contribution or payment schedule are performed by the Cash Management team for completeness. . Initial pension payment calculations and allocation of funds for drawdown are independently reviewed within the administration team for accuracy. . Forecast payments using prior month data are used as a sense check for the current month. . Actual pension payments are reconciled to payments payable monthly by the Payroll team. . Member payments and the allocation of funds for drawdown are reviewed for completeness and accuracy by a senior administrator or team leader. . A number of payments receive a second level review. These include plan payments over £250,000 and payments where there is more than one payment for the same member in the same period. . Lump sum payment calculations are reviewed by either automated system controls or by designated management against HMRC payment thresholds. Furthermore, the following controls are in place to ensure core financial transactions are processed promptly and accurately:

• Core financial transactions are audited annually by a third party, Deloitte. The audit undertaken for the Scheme year reported no issues with core financial transactions. • The Company play a key role in ensuring core financial transactions are processed promptly and accurately. The Company agree a monthly timetable for the contribution process with Willis Towers Watson each year, which sets the planned dates for contribution payments, interface delivery, reconciliation of queries and the investment with the fund managers. The Company also have internal controls around its contribution payment process and its engagement with the Willis Towers Watson interface team over the monthly reconciliation of queries does ensure any necessary adjustments are made for subsequent data/contribution records.

Based on the above, the Trustee is satisfied that the requirement to process core financial transactions promptly and accurately has been met during the year in relation to the money purchase benefits provided by the Scheme. AVC arrangements The Scheme does not receive any new member contributions into the AVC arrangements with LGIM, SEI and Equitable Life (now with Utmost Life and Pensions). Members can switch their non Equitable Life/Utmost funds using the investment tool on Mercer OneView. Mercer trades with LGIM for investments, fund sales and switches using the industry standard Via Nova straight through processing method, enabling full automation of the instruction to LGIM, the return of the trade details from LGIM, the update of the member record following completion of the trade and the reconciliation of the unit holdings between Mercer and LGIM systems. SEI are unable to trade using straight through processing, as they require instructions to be sent by fax. The confirmation of trade details is returned to Mercer by email and are updated manually. Mercer have controls within their systems to ensure that the trades are progressed and completed timely, with a monthly unit reconciliation being completed to ensure that all trades have been completed correctly. From 30 June 2019 to 31 December 2019, the Scheme held assets in the Equitable Life With Profits Fund. The holdings with Equitable Life were invested in a ‘With Profits’ non- unitised fund and, as a result, there was no Straight Through Processing or unit reconciliation and sales/closures of member policies were placed manually. Mercer’s leaver processing functionality indicated where an Equitable Life policy needed to be sold for a member, and the member settlement could only be completed once the sale details had been updated. At the start of 2020, the assets held in the Equitable Life With Profits Fund were transferred into the Utmost Life Secure Cash Fund. This occurred as part of the transfer of the Equitable Life Assurance Society’s UK policies to Utmost Life and Pensions Limited. The Trustee received investment suitability advice from the Scheme’s investment consultant prior to this investment. From 1 July 2020, the assets began gradually moving into the Utmost Life Money Market Fund as an interim step, following advice from the Scheme’s investment consultant. The long term plan for these assets was to move them to the AVC funds managed by LGIM. The transition to the AVCs managed by LGIM was subsequently completed in August 2020 following advice from the Scheme’s investment consultant. This process was undertaken by Mercer’s DC administration projects team and following the change, members could switch funds using the investment tool functionality on Mercer OneView described above.

Charges, transaction costs and value for money The Trustee is required to report on the charges and transaction costs experienced by members for the fund choice available and assess the extent to which the charges and costs represent good value for members. The charge a member pays is split between investment charges and administration charges. These charges are set out below. In relation to transaction costs, we note that when buying and selling investments, transaction costs can be incurred. Transaction costs are not explicitly deducted from a fund but are captured in its investment performance (in other words, the higher the transaction costs, the lower the returns produced by a fund). The Financial Conduct Authority (“FCA”) has provided guidance (in Policy Statement 17/20) to investment managers regarding calculations and disclosures of transaction costs. Due to the way in which transaction costs are required to be calculated, they can be negative or positive in nature; a negative figure is effectively a gain (on average) from trading activity, whilst a positive figure is effectively a cost from trading activity. The tables below show the total expense ratio (TER) and the total transaction costs for each of the funds underlying the Scheme’s default investment arrangements and self select funds. The overall charge being deducted from a member’s fund, if in the default investment arrangements, will reflect the member’s allocations in each of the underlying funds. In addition, the administration costs will depend on the member’s fund value. Charges Administration Since January 2015, the Scheme has been responsible for meeting its running costs, other than investment advisory and annuity purchase services, which continue to be met by the Company. To cover these costs, an administration charge is deducted from every individual member account (IMA). The charge ranges from 0.08% to 0.14% per annum depending on the value of the IMA. 25% of the relevant annual charge is deducted each quarter from the IMA. The Company and Trustee keep the charge under review. Investment The constituent investment funds that make up the default investment option along with associated charges are set out in the table below:

Total Expense Ratio Transaction costs for Fund name (% of account value per year to 30 June 2020 annum) (p.a.)* CSC Multi Asset Default 0.16% 0.04% CSC Diversified Growth 0.32% -0.01% CSC Targeting Cash 0.10% -0.02% * for the CSC Multi Asset Default, a proportion of the costs of each of the underlying funds has been used to calculate overall blended costs Allowing for the weightings of the underlying funds in accordance with the agreed phasing matrix, the TER charge profile for the lifestyle strategy ranges from 0.16% p.a. during the accumulation phase up to circa 0.27% p.a. [i.e. blended from 75% at 0.32% and 25% at 0.10%] at retirement. As noted earlier in this Statement, there are four funds that are deemed to be a “default arrangement” due to mapping exercises carried out by the Trustee and where members have not subsequently re-affirmed the investment selection. However, three of these funds were only deemed defaults following a mapping exercise undertaken after the Scheme year end (August 2020). The charges in respect of the fund deemed a default at year end has been listed below for completeness:

Total Expense Ratio Transaction costs for Fund name (% of account value per year to 30 June 2020 annum) (p.a.) CSC All Shares Adventurous Fund 0.65% 0.41% (Active)

Factoring in administration costs, the overall member fee for the CSC All Shares Adventurous Fund (Active) (including administration costs) would range from 0.73% p.a. to 0.79% p.a. depending on the member’s pot size. In October 2020, following negotiation with SEI, the investment fee was reduced to 0.61% p.a. bringing the overall maximum member charge to 0.75% p.a. As part of this process, the Trustee received the required legal advice on how to approach and correct this issue. The Trustee also makes available two additional lifestyle strategies and a range of risk- graded self-select funds which may be chosen by members. These strategies and funds allow members to take a more tailored approach to managing their own pension investments. The fees and transaction costs relating to these investments are set out in the table below.

Total Expense Ratio Transaction costs for Fund name (% of account value per year to 30 June 2020 annum) (p.a.)* CSC All Share Adventurous 0.11% 0.06% CSC All Share Adventurous (Active) 0.65% 0.41% CSC Multi Asset Adventurous (Active) 0.83% 0.34% CSC Multi Asset Default 0.16% 0.04% CSC Multi Asset Moderate 0.13% 0.04% CSC Multi Asset Moderate (Active) 0.77% 0.25% CSC Diversified Growth 0.32% -0.01% CSC Targeting Drawdown 0.37% 0.06% CSC Targeting Annuity 0.05% -0.01% CSC Targeting Cash 0.10% -0.02% * for the CSC Multi Asset Default and CSC Multi Asset Moderate a proportion of the costs of each of the underlying funds has been used to calculate overall blended costs

• Based on the proportions held in the underlying funds, the TER charges for the two additional lifestyle investment strategies available are 0.06% p.a. to 0.10% p.a. at retirement. The TER is 0.16% p.a. in the growth phase of both additional lifestyle strategies.

• The self-select funds have TER charges ranging from 0.05% p.a. to 0.83% p.a.

AVC arrangements

Equitable Life data presented below has been produced as at 31 December 2019. As the Scheme disinvested from the Equitable Life fund 6 months into the Scheme year, the total charges impact for members is less than the full-annualised impact presented above.

Equitable Equitable Fund Annual OEIC Net Life Fund Annual Life Fund Management Transaction Stocklending Total Fund Name Reporting Transaction Charge (% cost (% (% p.a.) Charges Period Cost (% p.a.) p.a.) Impact p.a.) (% p.a.)

With-Profits 1.00 31/12/2019 n/a 0.00391 1.035577 2.04 Fund

Following the disinvestment from the With Profits fund and subsequent transfer to Utmost Life and Pensions in January 2020, assets were invested in the Utmost Life Secure Cash Fund between 1 January 2020 and 30 June 2020. The Total Expense Ratio for this fund was 0.50% p.a. Information relating to transaction costs for this fund were requested but were unavailable at the time of writing.

Charges and costs relating to the remaining AVCs within the Scheme are set out below.

Total Expense Ratio Transaction costs for Fund name (% of account value per year to 30 June 2020 annum) (p.a.)* Aggressive 0.65% 0.41% Balanced 0.10% 0.00% Global Equity (60:40) Index 0.085% 0.00% Fixed Interest Gilts (Over 15 Years) 0.07% 0.05% Sterling Non-Gilts (Over 15 Years) 0.085% -0.01% Liquidity 0.085% -0.02% AVC Multi-Asset 0.15% 0.04% Adventurous Core (SMS) 0.07% 0.01% Balanced Core (SMS) 0.07% 0.00% Global Equity (30:70) Index (SMS) 0.095% 0.06% Sterling Non-Gilts (SMS) 0.07% -0.05% Index-Linked Gilts (Over 5 Years) 0.07% 0.13% (SMS) Diversified (SMS) 0.30% -0.01% * for the Balanced and Balanced Core a proportion of the costs of each of the underlying funds has been used to calculate overall blended cost

Impact of costs and charges on pot size The Trustee has prepared the following illustrative examples of the cumulative effect of costs and charges on members’ investments over time. In doing, so we have had regard to guidance produced by the Department of Work and Pensions. Please note that these are illustrative examples which should help you understand the impact on your savings of investment management and administration charges and transaction costs. Remember that the Trustee regularly monitors the level of charges to ensure they provide value for money.

Projected Pension pot in today’s money (£’s)

Active Member

We assume an initial pot size of £62,600, which is based on the average pot size in the Scheme using data as at 30 June 2020.

CSC Multi Asset

Default Lifestyle Adventurous (Active) CSC Targeting Annuity After all After all After all Before charges + Before charges + Before charges + Years charges costs charges costs charges costs deducted deducted deducted 1 69,880 69,648 70,144 69,234 68,473 68,349 5 99,620 98,202 101,269 95,725 91,209 90,508 10 138,228 134,719 142,404 128,736 118,006 116,413 15 178,491 172,173 186,162 161,635 143,107 140,460 20 220,480 210,590 232,712 194,420 166,617 162,781 25 264,269 249,993 282,230 227,094 188,639 183,501 30 309,936 290,408 334,907 259,655 209,266 202,734 35 357,561 331,861 390,943 292,105 228,586 220,588 40 407,227 374,379 450,553 324,443 246,683 237,160 45 446,292 405,173 513,965 356,671 263,634 252,543 48 459,965 414,523 553,937 375,954 273,285 261,238

CSC All Share

Adventurous (Active) CSC Targeting Cash After all After all Before charges + Before charges + Years charges costs charges costs deducted deducted 1 70,586 69,748 67,881 67,728 5 104,091 98,851 87,870 87,031 10 149,717 136,405 110,479 108,645 15 199,889 175,308 130,709 127,768 20 255,060 215,608 148,809 144,686 25 315,729 257,355 165,003 159,654 30 382,443 300,602 179,493 172,896 35 455,804 345,403 192,458 184,611 40 536,475 391,813 204,058 194,976 45 625,185 439,890 214,437 204,146 48 682,599 469,561 220,132 209,132

Notes 1. The projected pension pot values are shown in today's terms, and do not need to be reduced further for the effect of future inflation.

2. The assumed real terms investment returns (i.e. after allowing for future inflation) and assumed charges and costs for each of the funds illustrated are as follows:

CSC Multi CSC CSC All Share CSC Asset Default Adventuro Targeting Adventurous Targeting Lifestyle us (Active) Annuity (Active) Cash Assumed real-terms 0.84% to 1.24% -1.3% 1.92% -2.2% investment -0.55% return*: Assumed 0.29% to future 0.96% 0.18% 0.78% 0.23% 0.39% charges**: Assumed future 0.04% to 0.34% 0.00% 0.41% 0.0% transaction 0.00% costs***: * accumulation rate assumed in SMPI projections plus transaction costs minus the inflation rate (2.5%), gross of transaction costs. **the illustrations assumes the Administration charge for each fund is 0.13% throughout the members invested time horizon. ***based on average aggregate transaction cost information for the years to 30 June 2019 and 30 June 2020. A negative figure represents a positive transaction cost.

3. Initial salary is assumed to be £49,900.

4. Future inflation is assumed to be 2.5% each year.

5. The illustration assumes that further contributions will continue to be paid in. The figures show an assumed contribution of 13.48% (representing both your and your employer’s contribution, including tax relief) and increasing in line with assumed earnings inflation of 2.5% each year. 13.48% represents the approximate total average contribution rate paid as at 30 June 2020. Contributions are assumed to be paid at the end of each month.

6. The timeframe shown reflects the approximate length of time that the youngest Scheme member has to save until they reach the Scheme’s normal pension age.

7. This is not a personal illustration. The values shown are illustrations and are not guaranteed. Actual values could be significantly higher or lower than those shown in the illustrations.

Value for money The Trustee is committed to ensuring that members receive value for money (i.e. that the costs and charges provide good value in relation to the benefits and services provided) and so consider this on an on-going basis. The Trustee has concluded, following receipt of a report from their independent Defined Contribution adviser, that the Scheme offers reasonable to good value, relative to peers and alternative arrangements, in relation to member-borne deductions. However, the assessment took into consideration investment performance of the Scheme’s funds to 30 June 2020 and this included the significant equity market falls experienced in the first quarter of 2020. This affected the outcome of the assessment but the Trustee is satisfied that the Scheme does continue to provide good value for members considering this impact. The value for money assessment considered the following:

• Annual management charges • Net of cost performance • Administration service levels • Transaction costs where available.

The value for money assessment concluded that the Scheme’s money purchase benefits, services and options represent reasonable to good value for money for members as:

• Members have access to a variety of well-designed investment options which the Trustee regularly monitors and updates and which should meet the membership’s different returns/risks and income preferences.

• Members have access to institutional-priced investment fund management at charges which are competitive. Generally, the charges were found to be below the average of their peer group and fund performance has been in line with the Trustee’s expectations for the Scheme’s assets that are managed using a passive approach. However, performance has been disappointing for the three actively managed SEI funds and the CSC Multi-Asset Default Fund and Diversified Growth Fund, both managed by LGIM, over the three year period. Following the coronavirus outbreak in early 2020, growth assets plummeted in the first quarter of 2020 and this has significantly impacted the three-year performance of these funds and consequently the performance aspect of this year’s value for members’ assessment. The Trustee continues to closely monitor performance.

• Members receive a comprehensive and high-quality administration service with on-line access to their accounts. Administration performance is reviewed by the Trustee on a quarterly basis. The administration performance was on an improving trend during the year, but the final quarter was impacted by COVID-19 and the need for the administrator to prioritise key financial transactions at the expense of some regular services, such as for handling transfer and retirement enquiries and general correspondence. The administrators have transferred work to a specialist DC team following the Scheme’s year end and the Trustee anticipates a return to target service levels during the next Scheme year.

• Members receive good communication material and a high level of governance and Trustee oversight. • In relation to transaction costs, the Trustee notes a number of challenges to assess these costs: o No industry-wide benchmarks for transaction costs exist. o The methodology leads to some curious results, most notably “negative” transaction costs. o Explicit transaction costs are already taken into account when investment returns are reporting, so any assessment must also be mindful of the return side of the costs.

AVC arrangements Utmost Life from 1 January 2020 (formerly Equitable Life)

As mentioned, at the start of 2020, the assets previously held in the Equitable Life With Profits Fund were transferred into the Utmost Life Secure Cash Fund. This occurred as part of the transfer of the Equitable Life Assurance Society’s UK policies to Utmost Life and Pensions Limited. The Trustee received investment suitability advice from the Scheme’s investment consultant prior to this investment. This took into account, amongst other aspects, the uplifts members received on disinvesting from Equitable Life, the guarantee attached to the previous investments the member held and the guarantee that would be in place whilst members were invested in the Utmost Life Secure Cash Fund. It was believed that the guarantee embedded in the Utmost Life Secure Cash Fund would be of value, at least initially, to these members given the guarantees that were previously in place in the With Profit Fund. The charge for this fund is 0.5% p.a.; however, a charge was only applied if it did not cause a fall in asset value. From 1 July 2020, the assets began gradually moving into the Utmost Life Money Market Fund as an interim step, following advice from the Scheme’s investment consultant. The long term plan for these assets was to move them to the AVC funds managed by LGIM. The transition to the AVCs managed by LGIM was subsequently completed in August 2020. The Scheme also has a number of Additional Voluntary Contribution (AVC) arrangements in the Defined Benefit section and SMS section with underlying funds managed by LGIM and SEI. A number of the AVC funds are broadly equivalent to the previous arrangements in the Money Purchase section (prior to the changes in 2017) with a small number of additional funds managed by Legal & General. The Trustee plans to review the Scheme’s AVC arrangements with the intention to harmonise the arrangements. This was initially planned for this Scheme year but delayed due to the Scheme merger with the CSC Computer Sciences Limited 2005 Pension Scheme which was completed in October 2020. However, the performance of the AVC funds with LGIM has been line with expectations and prices appear to be competitively priced and comparable to the Money Purchase section fees. The SEI AVC fund has the same underlying fund as the CSC All Share Adventurous Fund in the Money Purchase section and this has been assessed in the main Value assessment noted above.

Maintaining the Trustee’s knowledge and understanding (TKU) Requirements In accordance with section 247 of the Pensions Act 2004, the Trustee Directors are required to maintain an appropriate level of knowledge and understanding which, together with professional advice that is available to them, enables them to properly exercise their functions and duties in relation to the Scheme. The Trustee Directors are also required to explain how their combined knowledge and understanding, together with the advice which is available to them, enables them to properly exercise their functions as trustees of the Scheme. The Trustee Directors must also be conversant with the Scheme’s own documentation, including the trust deed and rules and statement of investment principles. The Trustee Directors must also be conversant with any other document recording current policy relating to the administration of the Scheme generally. The Pensions Regulator interprets ‘conversant’ as having a working knowledge of those documents such that the Trustee Directors are able to use them effectively when they are required to do so in the course of carrying out their duties on behalf of the Trustee. In addition, Trustee Directors are also required to have a knowledge and understanding of the law relating to trusts and pensions. How the Trustee Directors have met these requirements New Trustee Directors are expected to complete the Pension Regulator’s Trustee Toolkit within three months of their appointment. No new Trustee Directors were appointed during the Scheme year. All current trustees have completed or are in good progress in completing the Pension Regulator’s Trustee Toolkit. The Trustee assesses its training needs annually in light of their business plan priorities and with regard to the statutory requirements. Following the introduction of a new committee structure at the beginning of 2019, each committee chair will also now discuss training requirements with the Scheme Secretary when agreeing each meeting agenda. In addition, the Trustee’s advisers also suggest training sessions they feel would be beneficial to the Trustee’s knowledge and understanding. A number of training sessions were undertaken during the year to ensure the Trustee was up to date with the latest developments in pension law and industry trends. Training session items included:

• The CMA Order and the requirements for setting objectives for the Scheme’s investment consultant. • New requirements on the SIP relating to the Trustee’s policies on their arrangements with the Scheme’s investment managers. This training also covered the requirements on SIP Implementation Statements and timelines. • The Trustee also received and considered a current topics paper on a quarterly basis from the Scheme’s DC Consultant, covering such items as industry trends and important legislative requirements relating to DC schemes. • Investment training on private markets provided by the Scheme’s Defined Benefit investment consultant. • Investment training on secured income and asset backed securities by the Scheme’s Defined Benefit investment consultant. • General training on Wind Up Lump Sums in advance of the post year-end Scheme merger. • Current regulatory and legislative developments provided by the Scheme’s legal advisers. In addition to the above, the Trustee undertook training in relation to the DC governance landscape, the wider DC landscape where the Scheme fits within this, a training session from the Scheme’s Money Purchase section administrator and a training session from Premier’s Wealth Planning. These sessions were undertaken in October 2020 primarily as an introduction to new Trustee Directors who joined the Board after the Scheme merger; however, all Trustee Directors attended these sessions. The Trustee undertook a number of additional activities during the year that involved giving detailed consideration to pensions and trust law, the Scheme’s governing documents and investment principles. This allowed them to exercise their knowledge and understanding and to further strengthen their capabilities. These included:

• Balance of Powers training from their legal advisers. • The Statement of Investment Principles was updated just after year end to reflect the new requirements on the Trustee’s policies in relation to the arrangements with the Scheme’s asset managers and how their incentivise the Scheme’s asset managers to align their strategy with the Trustee’ policies. The final Statement was signed on 16 September 2019 and published online as required by legislation. • Various legal aspects relating to the merger with the CSC Computer Sciences Ltd 2005 Pension Scheme were worked through with the assistance of the Scheme’s legal advisers. In addition to the above, the Scheme’s legal advisers regularly attend Trustee meetings (either in person or by conference call) and provide ongoing support to the Trustee Directors in relation to legal matters and the interpretation of the Scheme’s documentation. The Trustee secretariat function is outsourced to professional advisers. Consequently, the Trustee’s agendas and sub-committee agendas are prepared by professional advisers who do so with a view to ensuring compliance and best practice. There were no board effectiveness surveys undertaken during the year. However, this is informally picked up between the Chair of Trustee and Trustee Secretary when discussing each quarterly board meeting agenda. In November 2020, the Chair had individual conversations with the Trustee Directors covering a review of the year and a discussion on areas for training. In addition, the Trustee requested feedback from the Scheme’s key advisers on their view on how effectively the Board were functioning and whether the current decision making and governance framework was working well. The Trustee is currently considering this feedback to determine if these aspects could be improved further. The Trustee Directors believe they have a good range of different skillsets and expertise. The Trustee’s combined knowledge and understanding complements this and, together with the advice available to them from a range of appointed professional advisers, gives them a broad base of knowledge and experience in order to identify and analyse issues, and recognise where further advice may be required, so as to properly exercise their functions as a Trustee of the Scheme. Taking account of actions taken individually and as a Trustee body, together with the professional advice available to them, the Trustee considers they are able to exercise their function as Trustee appropriately.

The Chair’s Statement regarding money purchase benefits governance was approved by the Trustee on 28 January 2021 and signed on its behalf by:

MARK GREENHALGH Date: 28 January 2021 Mark Greenhalgh CSC Pension Trustees Ltd - Chair

CSC Computer Sciences Ltd Pension Scheme – Money Purchase section

Statement of Investment Principles

1. Introduction

1.1 The purpose of this Statement of Investment Principles (“the Statement”) is to document the principles and policies governing decisions about the investment of the assets of the CSC Computer Sciences Ltd Pension Scheme – Money Purchase section (“the Scheme”). This statement has been prepared by the Trustee of the Scheme (“the Trustee”). It sets out the Trustee’s policy for complying with

− The Pensions Act 1995, as amended by the Pensions Act 2004; − The Occupational Pension Schemes (Investment) Regulations 2005, as amended by the Occupational Pension Schemes (Charges and Governance) Regulations 2015; and, − Subsequent legislation.

1.2 The Trustee has consulted DXC Technology (“the Company”) on the Statement, and the Trustee has received written advice from the Scheme’s investment consultants, Mercer Limited (“Mercer”), which is regulated by the Financial Conduct Authority (“FCA”) in relation to investment services.

1.3 The Trustee maintains an Investment Policy Implementation Document (“IPID”), which contains more detail on the Scheme’s investment arrangements. This document, whilst complementing the Statement, does not form part of the Statement and therefore the principal employer is not consulted in relation to changes to this document.

1.4 A copy of this Statement will be sent to the Scheme’s investment managers. The Trustee is committed to review the Statement at least once every three years and without delay upon a material change to the Scheme or the Company.

1.5 This Statement covers the Money Purchase Section and the Additional Voluntary Contribution arrangements for the Final Salary and the Segregated SMS Section only. A separate Statement of Investment Principles has been prepared in respect of the Defined Benefit arrangements for the Final Salary Section and the Segregated SMS Section.

2. Objectives of the Scheme

The Trustee recognises that individual members have differing investment needs and that these may change during the course of a member’s working life. The Trustee also recognises that members have different attitudes to risk. The Trustee believes that members should be allowed to make their own investment decisions based on their individual circumstances.

In order to encompass these factors the Trustee has agreed the following objectives:

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− To make available a range of CSC labelled investment options that should enable members to tailor their own investment strategy to meet their own individual needs.

− To offer funds which allow diversification of risk and long-term capital growth.

− To provide a default investment option for members who do not make their own investment decisions. This is designed to be broadly appropriate for the needs of the majority of the membership.

The Trustee undertakes to review the Scheme’s fund choices offered to members and the investment manager arrangements on a regular basis.

3. Investment Policies

The Trustee has made available a range of individual self-select fund options for investment in addition to the default investment option. A range of asset classes has been made available, including: equities, diversified growth funds, a number of blended multi-asset funds, money market investments, gilts and pre-retirement (annuity targeting) funds. It is the Trustee’s policy to offer both active and passive management options to members where appropriate, depending on asset class.

In selecting assets, the Trustee considers the liquidity of the investments in the context of the likely needs of members. All assets are daily dealing and therefore should be realisable based on member demand. In addition, assets are mainly invested on regulated markets.

The Trustee’s policy in relation to the balance between the different kinds of investment is set out in the ‘Investment Options’ section. Further details of the funds and lifestyle strategies used in the Scheme are set out in the IPID. Members also have the option to combine the funds in any proportion in order to determine the expected return on a member’s assets and should relate to the member’s own risk appetite and tolerances.

The Trustee’s policy in relation to expected return is to make funds available to members that are spread across the expected risk/return spectrum. Each fund used in the Scheme has an associated benchmark or target return which the Trustee views as the expected return. The expected return targeted by each is shown in the IPID. This includes assets that target long term growth in real terms and assets that are expected to be less risky and more defensive in nature.

The Trustee recognises that “risk” in the context of a defined contribution pension plan is multi-faceted. In broad terms, it’s regarded as the likelihood of failing to achieve the objectives set out in the previous section and have, on the advice of Mercer, taken several measures which are set out in this Statement to mitigate these risks, so far as is possible. The list below is not exhaustive but covers the main risks that the Trustee considers and how they are managed.

Risk How it is managed How it is measured

The Trustee provides members Considering the real with a range of funds, across returns (i.e. return Inflation Risk various asset classes, with the above inflation) of majority expected to keep pace the funds, with

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The real value (i.e. post inflation) with inflation (with the exception positive values value of members’ accounts of the money market and fixed indicating returns decreases. interest bond funds). that have kept pace with inflation. Members are able to set their own investment allocations, in line with their risk tolerances.

The Trustee makes available three lifestyling strategies for DC members, each targeting either cash, drawdown or annuity. Considering the Lifestyle strategies returns of the funds automatically switch member used within the assets as they approach switching phase of Pension Conversion retirement into investments that the lifestyle strategy Risk are expected to be less volatile both in absolute Member’s investments do not relative to how they wish to terms as well as match how they would like to access their pension savings. relative to inflation, use their pots in retirement. These lifestyling strategies cash or annuity increase the proportion of prices (depending on assets that more closely match their selected the chosen retirement retirement destination as members destination). approach retirement. This aims to reduce the risk of a substantial fall in the purchasing power of their accumulated savings near retirement.

The Trustee provides members with a range of funds, across various asset classes. Members are able to set their own investment strategy in line with Market Risk their risk tolerances. Monitoring the The value of securities, including performance of equities and interest bearing For the multi-asset funds which assets, can go down as well as investment funds on up. are targeting non-market a quarterly basis. benchmarks (e.g. CSC Targeting Drawdown and CSC Diversified Growth funds), this is delegated to investment managers.

Delegated to investment Counterparty Risk managers. Monitoring the A counterparty, either an performance of underlying holding or pooled Members are able to set their arrangement, cannot meet its investment funds on obligation. own investment allocations, in a quarterly basis. line with their risk tolerances.

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Monitoring the performance of The Trustee provides diversified Currency Risk investment funds on investment options that invest in The value of an investment in a quarterly basis. the member’s base currency local as well as overseas may change as a result of markets and currencies. Consideration to the fluctuating foreign exchange movements in Delegated to investment rates. foreign currencies managers. relative to pound sterling

Consideration to the ratings of investment Trustee considers manager Operational Risk strategies from their research which includes A lack of robust internal investment operational aspects from their processes, people and systems. consultant and investment consultant. monitoring these on a quarterly basis.

The pricing and Liquidity Risk The Trustee accesses daily dealing terms of the Assets may not be readily dealt and daily priced pooled funds underlying the marketable when required. funds. unit-linked insurance contract

Section 4 of this Environmental, Social Statement also and Governance Risk covers how the ESG factors can have a The Trustee’s policy on ESG Trustee monitors the significant effect on the risks is set out in Section 4 of extent to which performance of the investments held by the Scheme e.g. this Statement. managers integrate extreme weather events, poor ESG factors and governance. active ownership into their core processes.

The Trustee makes available a The Trustee number of actively managed considers the ratings funds to DC members where of investment they deem appropriate; for strategies from their example, multi-asset funds with investment Manager Skill / Alpha Legal & General and SEI. consultant during the Risk selection process. Returns from active investment The performance of these funds management may not meet is monitored by the Trustee and Trustee monitors expectations, leading to lower their investment consultant. performance and than expected returns to members. The investment consultant also rating of funds on an provides manager ratings which ongoing basis examine the forward looking relative to the fund’s expectations of the fund benchmark and meeting objectives (where the stated funds are researched). targets/objective

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The risks identified in the above table are considered by the Trustee to be ‘financially material considerations’. The Trustee believes the appropriate time horizon for which to assess these considerations within should be viewed at a member level. This will be dependent on the member’s age and their selected retirement age. It is for this reason that a number of lifestyle options have been made available to members.

Member views on non-financial matters are not taken into account in the selection, retention and realisation of investments.

4. Responsible Investment and Corporate Governance

The Trustee believes that environmental, social and corporate governance (“ESG”) factors may have a material impact on investment risk and return outcomes. The Trustee also recognises that long-term sustainability issues, including climate change, present risks and opportunities that increasingly require explicit consideration. Details on how these are considered are set out in separately in the Trustee’s ESG Beliefs Statement.

Having considered its fiduciary duty, the Trustee has delegated the evaluation of ESG factors, including climate change considerations, and exercising voting rights and stewardship obligations attached to the investments, to the appointed investment managers in accordance with their own corporate governance policies and current best practice, including the UK Corporate Governance Code and the UK Stewardship Code. The manager’s engagement polices are expected to include all relevant matters including performance, strategy, capital structure, management of actual or potential conflicts of interest, risks, social and environmental impact and corporate governance.

The Trustee considers how ESG, climate change and stewardship is integrated within investment processes when appointing new managers and monitoring existing managers. These issues are monitored by the Trustee which takes advice from the investment consultant’s assessment of how the fund managers incorporate ESG. Monitoring is undertaken on a regular basis and is documented at least annually to assess the effectiveness of applied approaches.

The Trustee has not set any investment restrictions on the appointed investment managers in relation to particular products or activities, but may consider this in future.

Equity managers who are FCA registered are expected to report on their adherence to the UK Stewardship Code on an annual basis.

5. Arrangements with Asset Managers

5.1 The Trustee appoints investment managers based on their capabilities and, therefore the perceived likelihood of achieving the expected return and risk characteristics required for the asset class being selected. The Trustee look to its investment advisor for their forward looking assessment of a manager’s ability to outperform over a full market cycle. The advisor’s manager research ratings assist with due diligence and questioning managers during presentations to the Trustee and are used in decisions around selection, retention and realisation of manager appointments.

5.2 As the Trustee invests in pooled investment vehicles they accept that they have limited ability to influence investment managers to align their decisions with the Trustee

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policies set out in this statement. However, appropriate mandates can be selected to align with the Trustee’s overall investment strategy.

5.3 The Trustee expects investment managers to incorporate the consideration of longer term factors, such as ESG factors, into their decision making process where appropriate. Voting and engagement activity should be used by investment managers to discuss the performance of an issuer of debt or equity. The Trustee also considers the investment adviser’s assessment of how each investment manager embeds ESG into its investment process and how the manager’s responsible investment philosophy aligns with the Trustee’s responsible investment policy. The Trustee will use this assessment in decisions around selection, retention and realisation of manager appointments.

5.4 The Trustee’s focus is on longer-term performance but shorter-term performance is monitored to ensure any concerns can be identified in a timely manner. The Trustee reviews both absolute and relative performance against a portfolio or underlying investment manager’s benchmark on a quarterly basis, including assessments of both shorter and longer time horizons. The Trustee also relies upon Mercer’s manager research capabilities. The remuneration for investment managers used by the Scheme is based on assets under management; the levels of these fees are reviewed annually as part of the annual value for members assessment to ensure they continue to represent value for members. If performance is not satisfactory, the Trustee may request further action be taken, including a review of fees.

5.5 Portfolio turnover costs for each of the funds are reviewed on an annual basis as part of the annual value for members assessment. The ability to assess the appropriateness of these costs is currently limited by the availability of data and the lack of industry-wide benchmarks. The Trustee will monitor industry developments in how to assess these costs and incorporate this in future value for members assessments. Importantly, performance is reviewed net of portfolio turnover costs.

5.6 The Trustee is a long term investor. All funds are open-ended and therefore there is no set duration for manager appointments. The Trustee is responsible for the selection, appointment, monitoring and removal of the investment managers. The available fund range and Default Option are reviewed on at least a triennial basis. A manager’s appointment may be terminated if it is no longer considered to be optimal nor have a place in the default strategy or general fund range.

6. Investment Options

6.1 The Trustee offers the a range of investment options to the members. The Trustee believes that this range of options is suitable for meeting the investment objective and risk considerations detailed in Sections 2 and 3 respectively.

6.2 The range of investment options available includes three lifestyle investment options. The Lifestyle options involve investments being switched gradually over an individual’s lifetime in the Scheme from assets that target long term real growth (e.g. equities) to assets that are considered less risky and in line with how the members wishes to take their retirement savings (e.g. cash, bonds, diversified growth funds). If members wish to do this, then they will also need to select their target retirement age.

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6.3 Where members do not choose their investment option when joining the Scheme (or when there is a later need to make a choice), the Trustee will invest their contributions in the default lifestyle option, the CSC Targeting Drawdown Lifestyle Option (set out below and detailed in section 7).

6.4 The Trustees have also made available a pre-design range of growth funds with various expected risk levels as self-select options. In addition, The Trustee offers all members the choice of three funds that helps prepare for how a member wishes to access their benefits at retirement.

6.5 Further details of the funds available and their objectives are set out in the IPID.

7. Default Option – Statement of Investment Principles

The Trustee recognises that many members may not wish or feel able to make investment decisions. As such, the Trustee has made available a default investment arrangement.

The default investment arrangement, which is the CSC Targeting Drawdown Lifestyle Option, has two phases: the accumulation phase and the consolidation phase. When a member is younger, their account is invested in funds that aim for long-term growth (accumulation phase) in excess of inflation. To counter the greater impact on member outcomes of investment risk as a member’s savings grow, the default strategy seeks to reduce investment risk (by increasing the allocation to a diversified range of assets) as the member approaches retirement.

7.1 Aims and Objectives

The aims of the default option, and the ways in which the Trustee seeks to achieve these aims are detailed below:

- To generate returns in excess of inflation during the growth phase of the strategy whilst managing downside risk.

The default option’s growth phase invests in the CSC Multi Asset Default fund comprised of holdings of 75% in global equities and 25% in a diversified growth fund. These investments are expected to provide long-term growth above inflation with some downside protection.

- To provide a strategy that reduces investment risk for members as they approach retirement.

As a member’s account grows, investment risk will have a greater impact on member outcomes. Therefore, the Trustee believes that a strategy that seeks to reduce investment risk as the member approaches retirement is appropriate.

The CSC Targeting Drawdown Lifestyle Option therefore aims to reduce volatility near retirement via automated switches over a 7-year period to a member’s selected retirement date. Investments are gradually switched from growth-oriented assets (largely global equities) into a combination of a diversified growth fund (which has an allocation consisting of traditional and alternative assets) and a cash fund for capital preservation purposes.

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- To provide exposure at retirement to assets that are broadly appropriate for an individual planning to use their savings in the Scheme to invest in an income drawdown product and to take a 25% tax-free cash lump sum at retirement.

At the member’s selected retirement date, 75% of the member’s assets will be invested in a diversified growth fund and 25% in a cash fund.

7.2 Policies in relation to the default option

The Trustee’s policies in relation to the default option are:

- A range of asset classes are included within the default investment option (within the blended funds used), including: developed market equities, emerging market equities, money market investments and diversified growth funds. All funds are daily-dealt pooled investment arrangements, with assets mainly invested on regulated markets. It is the Trustee’s policy to utilise both active and passive management within the default investment option, depending on the asset class.

- The pooled funds are commingled investment vehicles. The selection, retention and realisation of securities within the pooled funds are delegated to the manager in line with the mandates of the funds.

- In designing the default, the Trustee has explicitly considered the trade-off between risk and expected returns. Risk is not considered in isolation, but in conjunction with the expected investment returns and outcomes for members. The Trustee took advice from their investment consultant when deciding on this asset allocation. The asset allocation is consistent with the expected amount of risk that is appropriate given the age of a member and when they expect to retire.

- In selecting assets, the Trustee considers the liquidity of the investments in the context of the likely needs of members. All assets are daily dealing and therefore should be realisable based on member demand. In addition, assets are mainly invested on regulated markets.

- The Trustee has also taken into account the needs of members with regards to security, quality, liquidity and profitability of a member’s portfolio as a whole. The Trustee has designed the default option taking account of the assets in the default.

- The default option manages investment risks and other risks through a strategic asset allocation consisting of equities, diversified growth funds and cash. Risk is not considered in isolation, but in conjunction with expected investment returns and outcomes for members.

- The Trustee has considered risks from a number of perspectives. The list below is not exhaustive but covers the main risks that the Trustee considers and how they are managed.

Risk How it is managed How it is measured

During the growth phase Considering the real Inflation Risk of the default investment returns (i.e. return above option the Trustee invests inflation) of the funds, with

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The real value (i.e. post inflation) in a diversified range of positive values indicating value of members’ accounts assets which are likely to returns that have kept decreases. grow in real terms. pace with inflation.

The default investment option is a lifestyling Considering the returns of strategy which targets the funds used within the flexible access income switching phase of the drawdown as a retirement lifestyle strategy both in destination. Pension Conversion absolute terms as well as Risk The Trustee believes that relative to inflation (the Member’s investments do not a strategy targeting retirement destination). match how they would like to drawdown also minimises use their pots in retirement. As part of the triennial the overall pension default strategy review, conversion risk for the the Trustee ensures the relevant members default destination accessing pots in a remains appropriate. different manner (annuity or cash).

The default investment strategy is set with the intention of diversifying this risk to reach a level of Market Risk risk deemed appropriate Monitoring the The value of securities, including for the relevant members performance of the default equities and interest bearing by the Trustee. assets, can go down as well as investment strategy on a up. For the diversified growth quarterly basis. funds which are targeting non-market benchmarks this is delegated to investment managers.

Delegated to investment Counterparty Risk managers. A counterparty, either an Monitoring the underlying holding or pooled Members are able to set performance of investment arrangement, cannot meet its their own investment funds on a quarterly basis. obligation. allocations, in line with their risk tolerances.

The Trustee reviews the A large proportion of level of currency hedging equity allocation of the Currency Risk used in the equity portfolio default investment option as part of the triennial The value of an investment in is currency hedged. the member’s base currency default strategy review. may change as a result of Within the diversified fluctuating foreign exchange growth fund the currency Monitoring the rates. risk management is performance of investment delegated to investment funds on a quarterly basis. manager. Consideration to the movements in foreign

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Investment strategy is set currencies relative to with the intention of pound sterling provided by diversifying this risk to the investment consultant reach a level of risk as part of quarterly deemed appropriate for investment monitoring the relevant members by reports. the Trustee.

Outsourced this to the investment consultant. Consideration to the Operational Risk ratings of investment Trustee considers strategies from their A lack of robust internal manager research which proceses, people and systems. investment consultant and includes operational monitoring these on a aspects from their quarterly basis. investment consultant.

Liquidity Risk The Trustee accesses In line with the main Assets may not be readily daily dealt and daily Scheme. marketable when required. priced pooled funds.

Environmental, Social and Governance Risk In line with the Scheme. ESG factors can have a significant effect on the The Trustee’s policy on In line with the main performance of the investments ESG risks is set out in Scheme. held by the Scheme e.g. Section 4 of this extreme weather events, poor Statement. governance.

The Trustee considers the The performance of active ratings of investment funds within the default is strategies from their Manager Skill / Alpha monitored by the Trustee investment consultant Risk and their investment during the selection Returns from active investment consultant. The process. management may not meet investment consultant expectations, leading to lower also provides manager Trustee monitors than expected returns to ratings which examine the performance and rating of members. forward looking funds on an ongoing basis expectations of the fund relative to the fund’s meeting objectives. benchmark and stated targets/objective

- The risks identified in the above table are considered by the Trustee to be ‘financially material considerations’. The Trustee believes the appropriate time horizon for which to assess these considerations within should be viewed at a member level. This will be dependent on the member’s age and their selected retirement age. It is for this reason that a number of lifestyle options have been made available to members.

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- Member views on non-financial matters are not taken into account in the selection, retention and realisation of investments.

- If members wish to, they can opt to choose their own investment options from a wide range at any time including two other lifestyle strategies. Members are supported by clear communications in the form of an investment guide regarding the aims of the default option and the access to alternative funds, albeit the Trustee will not provide advice to members on their individual choice of investment options.

7.3 Suitability of Default Investment Strategy

Based on its understanding of the Scheme’s membership, the Trustee believes that the above objectives and policies reflect members’ best interests. The rationale underpinning this belief is as follows:

- The Trustee believes that most members save into a pension scheme to achieve an income in retirement. However, the Trustee also believes that members will utilise the flexibility now available to them at retirement. The targeting of income drawdown at retirement is aligned with both these beliefs. This does not mean that default members have to take their benefits in this format at retirement - it merely determines the investment strategy that will be in place pre-retirement.

- Based on Scheme experience to date, almost all members withdraw tax-free cash at retirement. The use of the Cash fund within the default option addresses that requirement.

- Members seeking an adequate income in retirement will likely need to achieve real investment returns for most of their period as pension savers. The use of a fund with significant weightings in global equities during the accumulation phase addresses that requirement.

The Trustee intends to monitor members’ decisions and other inputs from time to time to ensure that the default option remains suited to their needs. A strategic review will take place at least triennially, or after significant changes to the Scheme’s demographic, if sooner.

8. Additional self-select default

In accordance with the Occupational Pension Schemes (Charges and Governance) Regulations 2015, the Trustee has identified an additional investment option, the CSC All Shares Adventurous Fund (Active), which should be treated as a ‘default arrangement’ (as defined by these regulations) in addition to the current default investment option (as detailed in section 7). This fund has been identified as a ‘default arrangement’ as member contributions have been automatically directed to replacement funds without members having instructed the Trustee where their savings and future contributions are to be invested. Details of the aims, objectives and policies in relation to this fund are set out in the table below.

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Fund Trustee’s policies CSC All Shares Trustee’s Aims and Objectives Adventurous To provide members with a fund that: Fund (Active) − provides broad exposure to global equity by investing in UK equity and overseas equity; and − is actively managed and seeks to outperform its benchmark return of the relevant UK and overseas indices. Types of investment primarily held This fund invests entirely in equities. Expected return The expected return will be in line with that of the funds target which is to outperform its benchmark (30% FTSE All Share Index/70% MSCI World Index IMI (Net)). Other policies Policies relating to risk, realisation of assets, financially material considerations, members’ views on non-financial considerations are consistent with those set out in section 3 of this Statement. Policies relating to responsible investment and corporate governance and arrangements with the asset manager are consistent with those set out in section 4 and section 5 respectively. Member’s best interests The fund is designed to meet its objective as outlined above. This fund has been deemed a default due to fund mapping exercises. As part of these mapping exercises the Trustee considered this fund to be an appropriate replacement to the option being removed. The Trustee continues to monitor the performance of this fund quarterly and review the appropriateness of this fund at least triennially.

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Fund Trustee’s policies CSC Targeting Trustee’s Aims and Objectives Cash To provide members with a fund that: − Offers reasonable preservation of capital (although not guaranteed) whilst earning a cash return. It is primarily designed to lock in investment gains during the run-up to retirement on the part of the member’s benefit, which are expected to be taken as cash at retirement Types of investment primarily held This fund invests in a diversified portfolio of high credit quality short term fixed income and variable rate securities. Expected return The expected return will be in line with short term cash rates (benchmark is 7 day LIBID). Other policies Policies relating to risk, realisation of assets, financially material considerations, members’ views on non-financial considerations are consistent with those set out in section 3 of this Statement. Policies relating to responsible investment and corporate governance and arrangements with the asset manager are consistent with those set out in section 4 and section 5 respectively. Member’s best interests The fund is designed to meet its objective as outlined above. This fund has been deemed a default due to a fund mapping exercise. As part of this mapping exercise the Trustee considered this fund to be an appropriate replacement to the option being removed. The Trustee continues to monitor the performance of this fund quarterly and review the appropriateness of this fund at least triennially.

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Fund Trustee’s policies CSC AVC Trustee’s Aims and Objectives Multi-Asset To provide members with a fund that: Fund − To generate returns in excess of inflation whilst managing downside risk. Types of investment primarily held CSC Multi Asset Default fund comprised of holdings of 75% in global equities and 25% in a diversified growth fund. These investments are expected to provide long-term growth above inflation with some downside protection. Expected return The expected return will be in line with that of the fund’s target which is to outperform the composite benchmark derived from - 22.5% FTSE All Share Index - 52.5% FTSE All World (ex UK) Equity Index (75% currency hedged) - 25.0% Bank of England Base Rate plus 4.5% per annum (gross of fees) Other policies Policies relating to risk, realisation of assets, financially material considerations, members’ views on non-financial considerations are consistent with those set out in section 3 of this Statement. Policies relating to responsible investment and corporate governance and arrangements with the asset manager are consistent with those set out in section 4 and section 5 respectively. Member’s best interests The fund is designed to meet its objective as outlined above. This fund has been deemed a default due to a fund mapping exercise. As part of these mapping exercises the Trustee considered this fund to be an appropriate replacement to the option being removed. The Trustee continues to monitor the performance of this fund quarterly and review the appropriateness of this fund at least triennially.

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Fund Trustee’s policies CSC Liquidity Trustee’s Aims and Objectives AVC Fund To provide members with a fund that: − Offers reasonable preservation of capital (although not guaranteed) whilst earning a cash return. It is primarily designed to lock in investment gains during the run-up to retirement on the part of the member’s benefit, which are expected to be taken as cash at retirement Types of investment primarily held This fund invests in a diversified portfolio of high credit quality short term fixed income and variable rate securities. Expected return The expected return will be in line with short term cash rates (benchmark is 7 day LIBID). Other policies Policies relating to risk, realisation of assets, financially material considerations, members’ views on non-financial considerations are consistent with those set out in section 3 of this Statement. Policies relating to responsible investment and corporate governance and arrangements with the asset manager are consistent with those set out in section 4 and section 5 respectively. Member’s best interests The fund is designed to meet its objective as outlined above. This fund has been deemed a default due to a fund mapping exercise. As part of this mapping exercise the Trustee considered this fund to be an appropriate replacement to the option being removed. The Trustee continues to monitor the performance of this fund quarterly and review the appropriateness of this fund at least triennially.

9. Switching

Members are responsible for reviewing their investment choices in light of their own circumstances.

Members may redirect future contributions or transfer their accumulated account between funds at any time prior to setting up their retirement benefits.

There are no administrative charges for switching, but members may incur transaction costs on selling and buying units.

10. Additional Voluntary Contribution (‘AVC’) arrangements

The Scheme permits members to provide additional benefits for themselves through the defined contribution investment options available by paying AVCs.

Segregated CSC Section – Final Salary Section

Members have the option of a number of funds with Legal & General Investment Management (‘LGIM’) and a SEI actively managed fund. Further details of the funds available are set out in the IPID.

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Segregated SMS Section

Members have the option of a number of funds with LGIM. Further details of the funds available are set out in the IPID.

11. Monitoring the Investment Manager

11.1 The investment managers provide details of performance of the relevant funds in which the Scheme invests.

11.2 Mercer is retained as investment consultant to assist the Trustee in fulfilling its responsibility for monitoring the investment managers.

12. Investment Adviser Fee Structures

12.1 A full fee breakdown of Manager and Investment Consultant fee scales can be found in the Scheme’s IPID.

13. Compliance with this Statement and Review of this Statement

We, the Trustee and Mercer, our consultant who has been appointed by the Trustee, each have distinct duties that are designed to ensure compliance with this Statement.

These are:

. The Trustee will review this Statement at least once every three years, or more frequently if required, upon a material change to the Scheme or the Company.

. Mercer will provide the advice needed to allow us to review and update this Statement.

As part of the service provided by LGIM and SEI (the “managers”), they meet, when required, with the Trustee to review their performance, at which time they will also provide written reports specific to the Scheme’s investments. On an annual basis, each manager confirms their compliance with the Statement together with an annual disclosure report on internal controls. Additionally, the managers will supply the Trustee with a general written report about the overall performance of the underlying funds on a quarterly basis.

September 2020

Signed on behalf of the Trustee of the CSC Computer Sciences Ltd Pension Scheme

Mark Greenhalgh Name: ______

Date: ___16 September 2020______

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