Texa$aver’s mid-cap funds will change on March 6. What does it mean for you?

Texa$aver’s mid-cap funds will change on March 6. What does it mean for you?

March 4, 2020

stacked coins with clock in backgroundAre you enrolled in the Texa$averSM 401(k) / 457 Program? If so, you were notified in December that the Employees Retirement System of Texas (ERS) is discontinuing the following two mid-cap investment options in the Texa$aver program:

  • First Eagle Fund of America Y
  • Victory Mulder Mid-Cap Growth Fund
On March 6, Texa$aver will replace the current two mid-cap funds with the BlackRock Mid Capitalization Equity Index F investment option. ERS thoroughly reviewed the possible replacement investment options.

Two options if you have a balance in the current mid-cap funds

If you have a balance in one or both of the current mid-cap funds or have future contributions directed to be invested in one or both of them, you have the following two options:

1. Take no action–your balance will automatically transfer to the replacement fund on March 6. Your balance in the current two mid-cap funds and any scheduled future contributions you have to one or both current funds will be transferred automatically to the BlackRock Mid Capitalization Equity Index F fund on March 6.

You do not have to take any action for these transfers and future investments to occur.

The change may result in an increase or decrease in your investment risk exposure and may or may not be consistent with your target strategy or investment style. We encourage you to review your account before and after the change and, if necessary, make adjustments to your asset allocation. You can change your future contribution allocations or move your existing balance to other available investment options at any time.
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2. Take action before market close on March 6 and reallocate your balance. If you do NOT want your existing balance(s) or future contribution elections to transfer automatically to the BlackRock Mid Capitalization Equity Index F fund, you must take action before market close on March 6 and reallocate your balance(s) and future contribution elections to other Texa$aver investment options.

You can review Texa$aver investment options and make changes to your account by doing one of the following two things:
  • log in to your Texa$aver account online or
  • contact a Texa$aver representative at (800) 634-5091 (TTY: (877) 606-4790) between 7 a.m. and 9 p.m. CT any business day or Saturdays between 8 a.m. and 4:30 p.m. CT.

Special note about Texa$aver Advisor Service

If you participate in Texa$aver Advisor Service (Online Advice and the Managed Account service provided by Advised Assets Group, LLC, a registered investment adviser), you may be unable to access these services while Advised Asset Group processes your investment change. You will still be able to view your account balance. You also can opt out of Texa$aver Advisor Service at any time. There is no guarantee provided by any party that participation in any of the advisory services will result in a profit.

Remember to consider the investment objectives, risks, fees and expenses carefully before investing. You can get this and other important information such as mutual fund prospectuses for registered investment options and/or disclosure documents on the Texa$aver website under the Investing tab or request it from your Texa$aver representative. If you have a self-directed brokerage account (SDBA) with Texa$aver, contact your SDBA provider. Read these materials carefully before investing.
 
road sign that says ImportantRemember: If you want your balance in the current funds and scheduled contributions to be transferred to the replacement fund, you do not need to take any action. The transfer and future investments will occur automatically unless you provide Texa$aver different investment instructions before market close on March 6. You can make changes to your account online or by calling (800) 634-5091.