Diversified Growth Fund change
The Trustee of the Telefónica UK Pension Plan has recently completed a review of the BlackRock Diversified Growth Fund. It has decided to make some changes that it believes will improve investment returns without materially increasing risk (e.g. changing the chance that the value of members’ savings could fall).
What is changing?
A bespoke fund will be created for Plan’s members which, in addition to aiming to increase your investment returns, will also provide the expertise of more than a single investment manager and enable the Trustee to change investment managers from time to time. It will be called ‘SL Mobile Diversified Growth Pension Fund’, and will initially invest in the following funds:
70%: BlackRock Diversified Growth Fund;
30%: Standard Life Enhanced-Diversification Growth Fund.
The investment objective will remain the same, to provide long term investment growth, but with lower volatility than investing purely in company shares. The total fees are also unchanged at 0.68% per annum, which means that for every £100 invested you will pay 68p per year in fees.
Who will this affect?
This change will affect most members invested within one of the Lifestyle options or any members that have selected the BlackRock Diversified Growth Fund within the Selfstyle option.
Do I need to do anything?
No – any funds invested in the BlackRock Diversified Growth Fund will be automatically moved in the week commencing 8 August 2016.
After that week the BlackRock Diversified Growth Fund will no longer be available as a standalone fund and any future contributions directed to it will be invested into the SL Mobile Diversified Growth Pension Fund instead.
If you are currently invested in the BlackRock Diversified Growth Fund and do not want to invest in the SL Mobile Diversified Growth Pension Fund, you will need to alter how your retirement savings are currently invested to exclude the BlackRock Diversified Growth Fund prior to 5 August 2016.
If you are currently invested in a Lifestyle option, this will require you to change to a Selfstyle option.
If you would like to alter how your retirement savings are now invested go to www.telefonicapensions.com/members-section/plan-basics/forms and complete the ‘Switching Investments’ form.
Note that you will not be able to make any changes to how your retirement savings are invested between 5 August 2016 and 15 August 2016.
Where can I get more information?
Contact details for any further queries are available at www.telefonicapensions.com/contact-us.
When making decisions about your retirement savings we recommend you take financial advice. You can find an independent adviser by going to www.unbiased.co.uk