Any positive or negative thoughts on this?
Dear MAP Participant,
As a result of DXC's upcoming spin-off of its U.S. Public Sector business into a new, publicly traded company named Perspecta, DXC stockholders will receive one share of Perspecta common stock for every two shares of DXC common stock held on May 25, 2018, the record date for the distribution. The distribution of shares of Perspecta stock is expected to occur on May 31, 2018 after the close of trading on the New York Stock Exchange ("NYSE") that day. Perspecta common stock will be listed on the NYSE under the symbol 'PRSP".
Upon the issuance of Perspecta stock, there will be a new investment option in the DXC Technology Matched Asset Plan ("MAP"): the Perspecta Stock Fund. The Perspecta Stock Fund will be considered a frozen investment option within the MAP. This means that MAP participants will not be able to invest additional amounts in the Perspecta Stock Fund except for any future dividends received from already-owned Perspecta stock.
The MAP offers a pass-through dividend feature, in which you can elect to receive company stock dividends in cash. Without an election, dividends are automatically reinvested in the stock of the company that paid the dividend. To elect the pass-through option for future dividends from either DXC or Perspecta stock held within the MAP, go to www.YourBenefitsResources.com/dxc or call 1.877.627.4015. If you have previously made an election under the MAP, that election will apply to Perspecta stock unless you elect otherwise.
Risk: As a single security of a single company, Perspecta stock (like DXC stock) exposes you to risks arising from that company as well as market and economic conditions. Other investment options are available to you in the plan. It is recommended that you give careful consideration to the benefits of a well-balanced and diversified portfolio.
It is expected that the Perspecta Stock Fund will be liquidated and removed from the MAP in the summer of 2019, and that liquidated assets from the Perspecta Stock Fund will be invested in the applicable Target Date Fund at that time. Alternatively, you can elect to liquidate your Perspecta Stock Fund holdings at any time prior to then by investing the funds in another investment option within the MAP. We will provide more details in the spring of 2019 about the fund liquidation.