26th October 2020
GSK Pension Scheme – Changes to the GSK Diversified Growth and GSK Lifecycle Funds
We are writing to let you know that changes have been made to the GSK Diversified Growth and GSK Lifecycle Funds.
Earlier this year, the Trustees amended the underlying allocations of both the GSK Diversified Growth Fund and the GSK Lifecycle Fund.
The purpose of this announcement is to provide you with the background to these changes. You do not need to take any action as a result.
What Has Changed?
The Trustees regularly review the investment options offered to members in the GSK Pension Plans. At the last review, the Trustees decided to make some changes to the structure of the GSK Diversified Growth and GSK Lifecycle Funds. These changes are summarised below:
The Trustees have decided to rebalance the GSK Lifecycle Fund to 65% GSK Equity Fund and 35% GSK Diversified Growth Fund. This change is designed to reduce the dependence on equities to drive investment returns of the GSK Lifecycle Fund and hopes to provide a smoother investment journey for members.
The Trustees have decided to change the mix of allocations that underlie the GSK Diversified Growth Fund, by adding new allocations to additional funds, namely the Fulcrum Diversified Absolute Return Strategy and the Man Group Alternative Risk Premia Strategy. This change is designed to provide additional sources of return, whilst also reducing the dependence on any one fund manager to drive performance.
The Trustees consider these changes to be in the best interest of members and took advice from the GSK Pension Plans’ investment advisors when considering the changes to be made. The Trustees regularly review the underlying funds within these arrangements, and will make changes if they deem this is appropriate and in the best interests of members.
The structure of the GSK Diversified Growth and GSK Lifecycle Funds following these changes are shown in the table on the following page.
| Fund | GSK Global Equity Fund Allocation (%) | GSK Diversified Growth Fund Allocation (%) | Fund Profile |
|---|---|---|---|
| GSK Lifecycle Fund | 65 | 35 | 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 multiple building blocks – worldwide equities and four diversified asset funds which aim to achieve a positive inflation related return. You should be aware that fund returns can fluctuate both up and down. |
| GSK Diversified Growth Fund | - | 100 | The fund aims to achieve growth over longer time periods with lower variability of return than equities, by investing in four separate funds which invest in a wide range of different asset classes. You should be aware that fund returns can fluctuate both up and down. |
What do I have to do?
As the Trustees’ have made the decision to change the allocation of these funds and they have already been implemented, there is no action required of you.
You may wish to review your existing investments and contributions to the Scheme to ensure they remain in line with your intended actions in retirement. Further information on how to do this can be found in the following section.
Where can I get further information?
For further information on the investment options available to you, please refer to the DC Pension Investment Performance section of the GSK pension website:
https://www.gskpensions.co.uk/dc-pension-investment-performance/
To review your investment options, please log on to the GSKPP portal. Active members of the Plan can access the member website via Total Reward online. Deferred members can access the portal at https://epa.towerswatson.com/accounts/gsk/. Deferred members received login details through the post following the recent change in administrator. If you are having trouble with your login details please follow the link under the ‘Problems logging in?’ section of the site.
If you have any questions or require any further information, please contact the GSK Pension Plan helpline on 01737 227563 or email at GSKpensions@willistowerswatson.com.
In addition, you can contact WEALTH at work on 0800 028 3200, or via www.wealthatwork.co.uk. WEALTH at work can provide you with advice and guidance on investment planning and general money management.
The details of two Independent Financial Advisors who could support you in making your investment decisions have been included below:
Chase de Vere – Tel: 0845 609 2009
Origen – Tel: 0844 209 3925
Alternatively, you can find other advisors in your local area by visiting www.unbiased.co.uk.
Neither the Trustees nor GSK endorse any particular firm or accept any responsibility for the advice provided by any financial advisor. You should also ensure that you are aware of the fees payable to obtain financial advice in advance. Please note that independent advice is not paid for by GSK.
Important Notices
This does not constitute investment advice. The Trustee is unable to offer advice as to whether any other funds are appropriate for you and would recommend that you seek impartial financial advice. A list of impartial financial advisors in your area can be found at www.unbiased.co.uk.
Further to this, the government make available the Money and Advice Service which offers free support and guidance that you may wish to consider using: 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.
Be aware of pension scams
It’s important to know the dangers posed by pension scams. Remember the following key points:
Under normal circumstances you can’t take retirement benefits until you are 55 (unless you are too ill to work or have a protected pension age);
Keep an eye out for cold callers (now illegal) and unsolicited emails and text messages; they may be ‘scammers’ and put you at risk of losing some (or even all) of your pension savings;
Never be pressured into making any pensions transfers or decisions about your pension without first taking the appropriate independent financial advice; and
If you have concerns or you’re not sure about your options, speak to the administrator or visit the Pensions Regulator’s website for more information at www.thepensionsregulator.gov.uk/pension-scams