The Gist Limited Pension SchemeSummary Report and Accounts 2018.

3Gist Summary Report and Accounts

Chair’s welcomeWelcome to the 2018 Summary Report and Accounts for members of the Gist Limited Pension Scheme (the Gist Scheme).In this year’s edition, you can fi nd the latest fi gures from the Gist Scheme’s annual Report and Accounts, including investments and membership.

We have also included some pensions news, with information about pension scams as well as a Brexit update ahead of the UK’s planned exit from the European Union in March 2019.

Finally, you should have received a communication including our privacy policy earlier this year about changes to the way we use your data. Since the privacy policy was issued, there have been a few updates. To read the updated policy, head to www.bocpensions.co.uk/privacy_notice.asp

We’re always looking to add useful content to our newsletters, so if you have any comments or suggestions let us know by using the contact details on the back page.

Martine Trouard-Riolle(on behalf of Capital Cranfi eld) Chairman of the Trustee Board

REJECT UNEXPECTED PENSION OFFERS

CHECK THAT THE PERSON CONTACTING YOU IS REGISTERED WITH THE FCA

TAKE YOUR TIME – DON’T GIVE IN TO PRESSURE

CONSIDER GETTING IMPARTIAL INFORMATION OR ADVICE

For more guidance from the FCA, visit www.fca.org.uk/scamsmart i

To fi nd an Independent Financial Adviser, go to www.unbiased.co.uk. Always make sure your fi nancial adviser is registered with the FCA.

Pensions newsBe savvy about scamsYou may have seen in the news that pension scams are becoming more common. In 2017, the average victim of a pension scam lost £91,000. Don’t let yourself become a victim.The Financial Conduct Authority (FCA) has recommended four steps to avoiding scams:

2 Gist Summary Report and Accounts

ContentsPages 3-5Pensions news

Page 6 Financials introduction

Page 7Gist Scheme accounts

Pages 8-9Investments

Page 10Who looks after the Gist Scheme?

Page 11Allowances update

5Gist Summary Report and Accounts4 Gist Summary Report and Accounts

Check your State Pension ageWhen planning for retirement, it’s important to account for other sources of income you may have.

To check the age that you can expect to start receiving your State Pension, use the Government’s online calculator at www.gov.uk/state-pension-age

Brexit is a fast-moving news item. To be sure that the information on this page is up to date, please continue to refer to our latest communications, as well as visiting www.bocpensions.co.uk

i

Brexit updateOn 29 March 2019, the UK will complete the Article 50 process which will see us leave the European Union. Here are a few answers to some questions you may have.

Is my pension at risk?The Trustee reviews investments on a quarterly basis, and the potential impact of Brexit on the Gist Scheme is being monitored closely. Preparations as far as investments are concerned have mostly been completed.

As a member or beneficiary of a ‘defined benefit’ pension scheme, your retirement benefits are based on your Final Pensionable Earnings, your Pensionable Service, and an accrual rate. As your pension is paid from the Gist Scheme’s money instead of a personal pot of money, the Trustee reviews funding risks, especially to investments, and acts accordingly. If there were any shocks in the market, or other short-term risks, the Trustee is well equipped to deal with them.

What other risks in relation to the Gist Scheme are there when we leave?The Trustee monitors risks on a regular basis. All sorts of issues, whether political or economic, have the potential to affect investments. This is why the Trustee invests in a wide range of funds, both inside the UK and overseas, to manage potential risks.

The Trustee will continue to keep a close eye on political developments, as it always does.

What will the impact be on the Company?No business can be 100% certain of the exact impact that Brexit will have on it. However, the Company is confident in its preparations, and there will be no impact on the Gist Scheme’s ability to pay pensions. The Trustee is fully committed to paying members’ pensions in full, regardless of political developments in the UK and elsewhere.

Pensions news (cont)

7Gist Summary Report and Accounts6 Gist Summary Report and Accounts

Income and expenditureA breakdown of the Gist Scheme’s income (money paid in) and expenditure (money paid out) is shown below.

Total income £11.104m Total income £11.795m

Member contributions £0.165mCompany contributions1 £10.819mOther income £0.120m

Member contributions £0.156mCompany contributions1 £11.350mOther income £0.289m

Income 2018 Income 2017

MembershipDeferred members

Pensioner members

912 142

962 141

2332018

2017

Gist Scheme accounts

1 Company contributions include member contributions paid via Salary Exchange and additional contributions made by the Company to strengthen the Gist Scheme’s funding position. It also includes reimbursement of the Pension Protection Fund (PPF) levy by the Company.

2Administration expenses include the PPF levy.

Benefits £0.958mLeaver payments £0.123mOther payments £0.242mAdministration expenses2 £0.594m

Benefits £0.936mLeaver payments £0.141mOther payments £0.195mAdministration expenses2 £0.531m

Total expenditure £1.917m Total expenditure £1.803m

Expenditure 2016Expenditure 2017

Financials introductionThe Trustee publishes an Annual Report and Accounts every year. This shows how the Gist Scheme’s finances have developed over the year.The Gist Scheme’s income and expenditure for the years ended 31 March 2018 and 31 March 2017 are shown in the charts below. You can download the full report from the website at www.bocpensions.co.uk or you can request a copy from BOC Pension Services using the contact details on the back page.

Fund value at 1 April 2017 Fund value at 1 April 2016

Fund value at 31 March 2018 Fund value at 31 March 2017

£101.765m

£88.464m

£88.464m

£65.313m

Income£11.104m

Income£11.795m

Expenditure£1.917m

Expenditure£1.803m

Return on investment*£4.114

Return on investment*£13.159m

+ +

+

_ _

+

= =

186

Active members

*After management charges

9Gist Summary Report and Accounts8 Gist Summary Report and Accounts

InvestmentsInvestment reviewWhen managing investments, the Gist Scheme tries to make

sure that the money it has (known as assets) keeps up with the cost of paying benefits to members (liabilities).

StrategyThe Trustee is responsible for the allocation of assets and monitoring the investment managers. Acting on the recommendation of the investment adviser, the Trustee decides on an investment strategy. Once the strategy has been agreed, the funds are managed on a day-to-day basis by the investment managers.

To make sure there’s a balance between risk and return, the Gist Scheme’s investments are split between growth and protection assets.

You can see how the Scheme’s assets were invested (as an allocation %) at 31 March 2018 in the chart below.

Growth assets 40%

Liability driven investments (LDI) 41%

Protection assets

Fixed income 19%

Investment managementBefore August 2017, the Trustee used an Investment Manager (BlackRock Investment Management Limited) and an Investment Consultant (Mercer Ltd) to manage the Scheme’s assets.

However, this was reviewed and on 4 August 2017, BlackRock Investment Management (UK) Limited took over these roles as a Fiduciary Manager.

What is fiduciary management?It’s an approach to managing assets where a trustee board appoints a third-party company to manage the total assets of the scheme. This is done with a combination of advice and delegated investment services, all with the aim of achieving the trustee’s investment objectives.

Allocation of assets

Gist Scheme asset allocation

at 31 March 2018

Investment performance* for the period ending 31 March 2018:

0.44%

2.98%

2.21%

Month to date

Year to date

Since appointment of Fiduciary Manager

*Net of fees

Returns on investments 2018: 2017:

Investment income £3,528 £1,895

Change in market value of investments £4,489,850 £13,380,480

Investment management expenses £(379,536) £(223,009)

Net returns on investments £4,113,842 £13,159,366

11Gist Summary Report and Accounts10 Gist Summary Report and Accounts

Scheme Actuary Richard Shackleton, FIA, Hymans Robertson LLP

Capital Cranfield Professional Trustee represented by Martine Trouard-Riolle (Chair)

Auditor Ernst & Young LLP

Mike Dowe Gist, Basingstoke

Medical Adviser Medigold Health

Legal Adviser Mayer Brown International LLP

Investment Adviser Mercer Ltd

Ray Francis Gist, Basingstoke

Rob Jurkowski Group, Guildford

Investment Manager Scottish Equitable plc (Part of Aegon UK)

Bank HSBC Bank plc

Benefits Administrators BOC Pension Services & ADP (Pension Payroll)

Phil Struthers Gist, Basingstoke

Neville Shiggins Gist, Barnsley

Company-Appointed Directors

Member-Nominated Directors

Advisers and administrators

Who looks after the Gist Scheme?There are currently six Directors on your Trustee Board. Four of these are appointed by the Company, and two are nominated and elected by members of the Gist Scheme.We also use several advisers and administrators to help us in the running of the Scheme.

Allowances update

This may be lower if you’re affected by the Tapered Annual Allowance, which may affect you if your income is more than £110,000 a year, subject to certain rules.

Lifetime AllowanceThis is the limit on the total value of all pension savings you can build up throughout your lifetime (excluding your State Pension) without incurring tax penalties.

Pensions are a very tax-efficient way to save, but there are some limits on how much you can save without incurring tax charges. The two main ones to look out for are the Annual Allowance (AA) and the Lifetime Allowance (LTA).

Annual AllowanceThis is the maximum amount of benefits you can build up (excluding the State Pension) each year without incurring tax penalties.

2018/19 tax year £40,000

2018/19 tax year £1.03m2019/20 tax year £1.055m

You can find out more about these limits by visiting: www.gov.uk/tax-on-your-private-pension

Designed and produced by A

HC

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Contact detailsBOC Pension ServicesThe Priestley Centre10 Priestley RoadThe Surrey Research ParkGuildfordSurrey GU2 7XY

Helpline: 0800 096 3214Fax: 01483 244 739Email: pensions.uk@boc.comWebsite: www.bocpensions.co.uk

Legal notePlease note that this newsletter is intended to provide information and nothing in it grants any legal right to benefi ts. Your entitlement to benefi ts is defi ned in the Trust Deed and Rules (as amended from time to time) at the date you leave service. You can download a copy of the current Trust Deed and Rules from the website at www.bocpensions.co.uk or request one from BOC Pension Services. If you are a pensioner or a deferred member you should ask for a copy of the edition which applied when you retired or left service. Nothing in this newsletter constitutes fi nancial advice. It is your responsibility to obtain fi nancial advice if you decide that you need it. To fi nd details of fi nancial advisers in your area visit www.unbiased.co.uk

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