Edinburgh Park

Section A

AVC changes 2019

Our AVC range is changing

We are adding new funds to our AVC range and some existing funds will stop accepting AVC switches into them. From 2 December 2019 the funds you can choose from will be:

SL Vanguard FTSE UK All Share Index Pension Fund – New

Category:

Passive UK Equities (Shares) Fund

Investments in:

Shares of UK listed companies

Aim of the fund:

The aim of the Fund is to seek to achieve capital growth for investors over the long-term by tracking closely the performance of the FTSE All Share Index, a market capitalisation weighted index of common stocks of companies listed in the UK.

Standard annual charge (% pa):

1.02

Discount negotiated for BTPS members (% pa):

0.70

Total charge you pay (% pa):

0.32

SL Vanguard Global Stock Index Pension Fund – New

Category:

Passive Global Equities (Shares) Fund

Investments in:

Shares of companies listed in developed markets.

Aim of the fund:

The aim of the Fund is to seek to achieve capital growth for investors over the long-term by tracking closely the performance of the MSCI World Index, a market capitalisation weighted index of common stocks of companies listed in developed countries.

Standard annual charge (% pa):

1.01

Discount negotiated for BTPS members (% pa):

0.70

Total charge you pay (% pa):

0.31

Standard Life Passive Plus III Fund – New

Category:

Diversified Growth Fund

Investments in:

A wide range of predominantly passive funds which invest in shares of companies, bonds, property, and money markets. The Fund may invest in shares or debt securities of companies from developed or emerging markets.

Aim of the fund:

The aim of the Fund is to seek to achieve capital growth by investing in a broad range of asset classes. This provides a greater degree of diversification and allows the Fund to be less reliant on a single source of return when seeking long-term capital growth.

Standard annual charge (% pa):

1.02

Discount negotiated for BTPS members (% pa):

0.70

Total charge you pay (% pa):

0.32

Standard Life Deposit and Treasury Fund

Category:

Money Market Fund

Investments in:

Short-term money market instruments such as, but not limited to, bank deposits and treasury bills.

Aim of the fund:

The aim of the Fund is to seek to provide investors with stability of capital and income comparable to sterling denominated short-term money market interest rate.

Standard annual charge (% pa):

1.01

Discount negotiated for BTPS members (% pa):

0.75

Total charge you pay (% pa):

0.26

Please note, the Standard Life Deposit and Treasury Fund is an existing fund which will be moving to Standard Life’s new technology platform at the beginning of December. 

The total annual charge is made up of an annual management charge (AMC) and variable expenses. Standard Life’s charges are not fixed and can go up or down over time.

Lower charges for BTPS members

There is a charge applied to all funds which is a measure of the costs associated with managing and operating an investment fund. You will see this quoted on Standard Life’s website and fund factsheets. The Trustee has negotiated discounted fund charges on your behalf, which reduces the charges paid by BTPS members. The discount and the total annual charge BTPS members will pay is shown in the fund descriptions above.

How can I switch to these new funds?

You can apply to switch funds using the BTPS Portal from 2 December 2019.

What will happen to my existing AVC funds?

BTPS currently provides AVC funds through BlackRock, Equitable Life, Legal & General Investment Management (LGIM) and Standard Life.

If you have AVC funds with BlackRock or Equitable Life your existing AVC funds will be unaffected by these changes.

If you have AVCs with LGIM or Standard Life, further information is provided below.

Changes to the Legal & General Funds

The Legal & General UK Equity Fund and Global Equity Fixed Weights (50:50) Fund will stop accepting AVC switches or contributions into the funds on 29 November 2019.

The funds you have already built up won’t be affected and will remain invested in these funds.

Changes to Standard Life With-Profits One Funds

The Standard Life With-Profits One Funds will stop accepting AVC switches or contributions into the funds on 29 November 2019.

The funds you have already built up won’t be affected and will remain invested in this fund.

Changes to the Standard Life Deposit and Treasury Fund

This fund will move to a new Standard Life technology platform at the beginning of December 2019. You do not need to take any action as your investment will remain the same but you will be sent a new AVC scheme reference and member reference number.