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Standard Life Property Fund (CR)

Important information for BAE Systems Pension Scheme Defined Contribution (DC) and Additional Voluntary Contribution (AVC) members investing in the Standard Life Property Fund

Effective 17 March 2020, the Standard Life Property Fund (CR) (‘SLPF’) suspended certain types of transactions following action taken by the underlying fund manager, Columbia Threadneedle Investments (‘Threadneedle’). During significant periods of market volatility, it can be difficult for a fund manager to obtain sound valuations for property fund assets. By suspending the fund, the manager aims to protect existing investors from being disadvantaged by those who are looking to either buy or sell holdings in the fund while valuations are uncertain. The suspension initiated by Threadneedle has been mirrored by other UK property funds.

How will the Standard Life Property Fund suspension affect me?

The fund suspension:

• Will not delay any retirement transaction (early, normal or late).

• Will not delay payment of any death benefits.
• Prohibits, for the moment, a switch of a member’s SLPF holding into an alternative investment fund. Any switch instruction made will be ‘queued’ for the time being and then actioned once the suspension is lifted.
• Prohibits, for the moment, a Deferred Member effecting a transfer-out of any SLPF holding to another pension scheme. Any transfer-out instruction will see the SLPF holding queued as described above.
• Prohibits any further contribution investment in the SLPF after 17 March 2020.

Until the SLPF re-opens, monthly contributions destined for this fund will be temporarily re-directed to the Money Market Fund (MMF). Please review the latest MMF Fact Sheet for information on this fund.
 
Once the SLPF re-opens the intention is that the affected members’ funds accrued in the MMF will be transferred to the SLPF. The Trustee will continue to monitor events and further updates will be provided as required.

If any SLPF investor does not wish their monthly contributions to be invested temporarily in the MMF, they can update their investment options in the usual way by logging into their Standard Life DC / AVC account.

You can also contact Standard Life with any questions you may have on 0345 271 9544 or email Group Pensions at pensions.policy@baesystems.com