Investment Manager Information

WHO MANAGES THE INVESTMENTS?

There is one investment manager who manages all four of different funds on offer.

Legal & General Investment Management (L&G)

L&G is one of the UK’s most high profile Life Assurance Companies. Its investment management arm is one of the UK market leaders in passive (index-tracking) investment. L&G is highly regarded in its field and is committed to this area of business in which it has vast experience.

The Trustee has appointed Legal & General to manage the following funds:

• The Passive Growth Fund: this uses the L&G Global Equity Fixed Weight Index Fund.
• The fixed Interest Fund: this uses the L&G AAA-AA-A Corporate Bond All Stocks Index Fund.
• The Pension Protection Fund: this uses the L&G Over 5 Year Index-Linked Gilts Index Fund.
• The Cash Fund: this uses the L&G Cash Fund.

Legal & General has created a website especially for ABP members. Go To www.lgim.com/clientsite and enter the username mem_abp and password abpdc983. This site focuses on the three funds that are available to members of the ABP Group Pension Scheme. For each of the tree funds, it covers latest unit prices, price history, performance, asset distribution, fund summary and market highlights.


HOW WERE THESE INVESTMENT MANAGERS CHOSEN?

The Trustee took advice from their investment consultants and considered other investment managers before selecting L&G and Threadneedle Pensions in 2002. In 2007, the Trustee made the decision to remove Threadneedle as one of the DC providers to the Scheme, following advice from its investment consultamts.

The Trustee will continue to monitor the performance and continued suitability of L&G on a regular basis and if necessary make changes in the future. These changes might involve closing a fund to new contributions and introducing a new fund for that investment option and may also involve switching members’ assets from a fund that is being discontinued to a replacement fund.

WHAT ARE THE INVESTMENT CHARGES?

L&G make a charge for investing members’ money.

This charge is calculated as a percentage of the value of assets held and is shown below. These investment charges are not payable directly by you. Instead, all charges are deducted from the respective funds before the unit prices of the funds are calculated. You will receive regular statements of the number of units you hold in the various funds and the value of your holdings. The fund charges are set out below:

The higher charge for the Active Growth Fund option managed by Threadneedle Pensions reflects the additional time and cost of active management.