We are making some important changes to the UK Equities Active Fund. You do not need to take any action unless you decide that you no longer wish to invest in the UK Equities Active Fund.

Following a review of the UK Equities Active Fund, the ERSP Trustees have decided to make a change. You’re likely to be affected by this change if either:

• Your retirement savings are invested in the Adventurous Lifestyle Option (ALO) and you have more than 5 years until your Target Retirement Age; or
• You have self-selected the UK Equities Active Fund as the investment choice for your retirement savings.

If your retirement savings are invested in the UK Equities Active Fund, you’ll receive a letter from the Trustees about the change, which is explained below.

Since 2016, the UK Equities Active Fund has been invested 50% in the M&G UK Recovery Fund (M&G Fund) and 50% in the Baillie Gifford UK Core Equity Fund (Baillie Gifford Fund).

The Baillie Gifford Fund has a very different style of investing to the M&G Fund. The purpose of having the two funds was to complement each other by performing well at different times in the economic cycle.

What is changing?

M&G has recently announced that the lead portfolio manager of the Fund is to leave the company in December. The departure of the portfolio manager is one of the review triggers established by the Trustees to determine the continued appropriateness of the M&G Fund as the ERSP fund. In addition, the M&G Fund has delivered disappointing performance over recent years.

Following a detailed review and having taken advice from the investment advisor, Hymans Robertson, the Trustees have decided to remove the M&G Fund from the UK Equities Active Fund. This means that any retirement savings invested in the M&G Fund will be sold and reinvested in the Baillie Gifford Fund. Once this transaction has been completed, all future contributions to the UK Equities Active Fund will be invested solely in the Baillie Gifford Fund and it will no longer be possible to invest in the M&G Fund through the ERSP.

When will the change happen?

The change will take place on/around 11 December 2020 and will automatically apply to you if you’re invested in either the ALO or you have self-selected the UK Equities Active Fund. You do not need to take any action unless you decide that you no longer wish to invest in the UK Equities Active Fund.

Further information

You can find out more about the full range of ERSP funds and make changes to your investment choices online at www.experian.co.uk/retirementplan. Remember that the replacement of the M&G Fund will take place on/around 11 December 2020 so you will need to make any changes to your investment choices before then  if you want these to take effect before the M&G Fund is removed from the ERSP fund range.

It is important to review your investment choices regularly, particularly if your circumstances change. Please note that the Trustees cannot provide you with any financial advice. You should consider obtaining financial advice if you are unsure if your investment choices remain suitable or if you are considering changing your investments.

If you have any questions you can contact the Experian Pensions Team at Capita by phone: 0114 229 8273 or by email: experianpensions@capita.co.uk. The Team are unable to provide financial advice but can answer any general questions you may have.