UK - Pharmaceutical giant GlaxoSmithKline says it is "looking at managers" as it combines more than £4bn (€5.8bn) in pension assets.

GSK senior vice president Rob Collinge told IPE that the company had decided to put all its pension assets into "one pot" and avoid paying two sets of fees to consultants. He said the initiative means that the company is now "looking at managers".

"We'll have it completed by end-year. We're completely restructuring the pension fund".

The funds' consolidation, around an index structure, is being transition managed by Legal & General, Collinge said. "It's good news for them," he said. GSK hasn't yet decided on satellite managers.

The news came as it emerged that the firm has consolidated its defined benefit investment consulting under Hewitt Associates, resulting in a partial loss at the firm for rival Watson Wyatt. Watson, which declined to comment, retains an actuarial brief at the company.

Collinge stressed that Watson Wyatt had provided a first rate service over the years and that it had been a very close decision by the trustees. But Hewitt was "a little bit better at the technical stuff", he said.

GSK was formed from the 2000 merger between GlaxoWellcome and SmithKline Beecham. Watson had advised the GlaxoWellcome fund while Hewitt was advisor to SmithKline.

Hewitt said: "After the merger between GlaxoWellcome and SmithKline Beecham, both sets of legacy arrangements continued to operate separately with different sets of investment advisers."

Hewitt investment consultant Morfydd Evans said: "We are looking forward to working with the trustees to ensure the smooth integration of two separate investment arrangements and ongoing management of the plans' assets."

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