DC pension investment performance
The links below show the latest performance figures for the DC investment funds used by members of the various GSK pension plans. Figures are based on the performance of the underlying funds, managed by Legal & General Investment Management for the following GSK funds:
Self-Select options
1. GSK UK Equity Index Fund
Profile
The fund offers the high performance potential of equities. However, you should be aware that equity returns can fluctuate both up and down – sometimes by large amounts.
Main role
Aims to build up the value of your account over the long term.
Suitability for members near retirement
As a growth-seeking allocation for an income drawdown-targeting portfolio. For members planning to take their benefits as cash or purchase an annuity, other funds are more suitable.
UK Equity Index Fund Fact Sheet >2. GSK Overseas Equity Index Fund
Profile
The fund offers the high performance potential of equities and is diversified across countries and regions. However, you should be aware that equity returns can fluctuate both up and down – sometimes by large amounts. While the fund is managed in such a way as to protect against the effects of some currency movements, you should be aware that the value of the fund may be affected by changes in some exchange rates.
Main role
Aims to build up the value of your account over the long term.
Suitability for members near retirement
As a growth-seeking allocation for an income drawdown-targeting portfolio. For members planning to take their benefits as cash or purchase an annuity, other funds are more suitable.
Overseas Equity Index Fund Fact Sheet >3. GSK Targeting Annuity Fund
Profile
Good quality corporate bonds and government gilts are usually less volatile than equities, but historically have produced lower returns over the long term. Although bonds pay a fixed rate of interest and index-linked gilts pay a rate linked to inflation, you should be aware that their price will vary and returns can fluctuate both up and down.
Main role
Aims to protect the inflation-linked annuity purchasing power of a member’s pension account in the years up to retirement. It invests in a range of bonds, while incorporating Environmental, Social and Governance (“ESG”) considerations as part of the investment strategy. However, over short to medium time periods, its value may vary significantly.
Suitability for members near retirement
For inflation-linked annuity purchase or as a defensive allocation for an income drawdown-targeting portfolio. For members planning to take their benefits as cash, other funds are more suitable.
GSK Targeting Annuity Fund Fact Sheet >4. GSK Cash Fund
Profile
Cash funds do not normally fall in value but the rate of interest you earn can vary and may not keep up with inflation over the long term.
Main role
Aims to protect the portion of your saving that you plan to take as a cash lump sum against any short term falls in value just before you take the lump sum or as a short term defensive holding.
Suitability for members near retirement
For members planning to take their benefits as cash, or to provide a source of tax free cash alongside annuity purchase or income drawdown. For protecting annuity purchasing power or providing growth for income drawdown, other funds are more suitable.
GSK Cash Fund Fact Sheet >5. GSK Diversified Growth Fund
Profile
The fund aims to achieve growth over longer time periods with lower variability of return than equities, by investing in two funds which invest in a wide range of different asset classes. You should be aware that fund returns can fluctuate both up and down.
Main role
Aims to deliver a moderate level of growth while providing some protection against large losses.
Suitability for members near retirement
As a growth-seeking allocation for an income drawdown targeting portfolio. For members planning to take their benefits as cash or purchase an annuity, other funds are more suitable.
GSK Diversified Growth Fund Fact Sheet >6. GSK Shariah Fund
Profile
The fund only invests in approved listed companies whose activities do not contravene the tenets of Islam. The fund offers the high performance potential of equities and is diversified across countries and regions. However, you should be aware that equity returns can fluctuate both up and down – sometimes by large amounts.
Any non-Shariah compliant revenue that might be earned is donated to charitable causes selected by the fund’s Shariah Committee.
Main role
Aims to build up the value of your pot over the long term.
GSK Shariah Fund Fact Sheet >7. GSK Global Sustainable Equity Fund
Profile
The Fund offers the high-performance potential of equities and is diversified across countries and regions. However, you should be aware that equity returns can fluctuate both up and down – sometimes by large amounts.
Main role
Aims to build up the value of your account over the long term.
Suitability for members near retirement
As a growth-seeking allocation for an income drawdown-targeting portfolio. For members planning to take their benefits as cash or purchase an annuity, other funds are more suitable.
GSK Global Sustainable Equity Fund Fact Sheet >8. GSK Global Equity Index Fund
(This fund which is used in the GSK Lifecycle is not available to new investors as a standalone fund, but members can select the GSK UK Equity Index Fund and the GSK Overseas Equity Index Fund)
Profile
The fund offers the high performance potential of equities and is diversified across countries and regions. However, you should be aware that, over the short term, equity returns can fluctuate both up and down – sometimes by large amounts. While the fund is managed in such a way as to protect against the effects of some currency movements, you should be aware that the value of the fund may be affected by changes in some exchange rates.
Main role
Aims to build up the value of your account over the long term.
Suitability for members near retirement
As a growth-seeking allocation for an income drawdown-targeting portfolio. For members planning to take their benefits as cash or purchase an annuity, other funds are more suitable.
Global Equity Index Fund Fact Sheet >Other funds (not available as a Self-Select option)
9. GSK Lifecycle Fund
Note that this fund is not available as a Self-Select option, but members can select the GSK UK Equity Index Fund, the GSK Overseas Equity Index Fund and the GSK Diversified Growth Fund
Profile
The fund aims to achieve a high level of growth with lower variability of return than equities alone, by investing in equities and a range of different asset classes. The fund has three building blocks – worldwide equities and two diversified asset funds which aim to achieve a positive inflation related return. However you should be aware that fund returns can fluctuate both up and down. and you might get back less than you invested. While the fund is managed in such a way as to protect against the effects of some currency movements, you should be aware that the value of the fund may be affected by charges in some exchange rates.
Main role
Aims to deliver a high level of growth while providing some protection against large losses. Used in the growth phase of the Scheme’s Default Fund.
Suitability for members near retirement
Is a growth-seeking allocation for an income drawdown-targeting portfolio. For members planning to take their benefits as cash or purchase an annuity, other funds are more suitable.
GSK Lifecycle Fund Fact Sheet >10. GSK Retirement Income Fund
Note that this fund is not available as a Self-Select option, but members can select the GSK Lifecycle Drawdown option which partly invests in this fund – see earlier in this Section for more information.
Profile
The fund aims to achieve a consistent level of growth with lower volatility than equities, by investing in a wide range of different asset classes. You should be aware that fund returns can fluctuate both up and down.
Main role
Aims to deliver a moderate level of growth while providing some protection against large losses.
GSK Retirement Income Fund Fact Sheet >The GSK Lifecycle investment options invest in a selection of the funds in proportions that will change as you approach retirement (including: Lifecycle Fund, Inflation Linked Pre-Retirement Fund, Retirement Income Multi-Asset fund and Cash Fund) . Please note that if you are invested in a legacy Lifecycle investment option, the funds you invest in may be different.
Security of DC assets
The GSK Pension Schemes invest defined contribution assets in a range of funds that are available on the investment platform provided by Legal & General Assurance (Pensions Management) Limited (“L&G”); the platform is accessed via a long-term insurance policy been the Trustees and L&G. L&G is regulated by the Financial Conduct Authority. In the event that L&G becomes insolvent, the Trustees are eligible for protection under the Financial Services Compensation Scheme (“FSCS”). This means that the Trustees may be able to make a claim (on behalf of members) for 100% of its policy value with L&G in the event of a default by L&G.
The funds on the L&G investment platform are managed by a range of investment managers, which include Legal & General Investment Management Limited (“LGIM”), HSBC Investment Funds (Luxembourg) S.A., Nordea Investment Funds S.A., Man Asset Management (Ireland) Limited and Fulcrum Asset Management LLP.
The Trustees of the GSK Schemes have agreements in place with L&G, who in turn has agreements with the individual fund managers that sets out guidelines for the underlying investments held by each fund. Day-to-day management of the investment arrangements is the responsibility of the underlying fund managers, including the indirect management of credit and market risks. The Trustees monitor the underlying risks by reviewing investment performance and risk through ongoing governance and quarterly investment reports.
At their last assessment, the Trustees were satisfied with the level of protection available to members’ assets, and believe that risks to the security of assets are being minimised where possible. The Trustees continue to monitor the situation regularly.
Please note:
- You should obtain appropriate independent financial advice before making changes to your investment strategy or fund choices.
- A list of impartial financial advisors in your area can be found at www.unbiased.co.uk.
- Other free sources of information that you may wish to consider using include the Money and Pension Service, www.moneyandpensionsservice.org.uk
- The type of investments you may want to hold depends upon your personal circumstances.
- Past performance is not a guarantee of future performance and the value of investments, including funds, can go down as well as up.
