Changes to the International Bond Select Portfolio

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We’re changing the weightings of the International Bond Select Portfolio due to the closure of two of its constituent funds in July. This affects the Aegon Retirement Choices (ARC) and packaged versions of the fund. Following a review, Morningstar has also recommended that we remove the Scottish Equitable Old Mutual Global Bond fund from the portfolio.

Why is the fund changing?

The Scottish Equitable Investec Global Bond fund and the Scottish Equitable PIMCO Select Global Bond fund are both closing and will therefore be removed from the International Bond Select Portfolio.

Morningstar has also recommended that the Scottish Equitable Old Mutual Global Bond fund is removed from the International Bond Select Portfolio due to significant changes to the mandate of this fund over the last year.  As a result of all of these changes, three new funds will be added to the International Bond Select Portfolio.

How will this affect the fund?

The charge for the ARC version of the International Bond Select Portfolio will reduce from 0.80% to 0.50%. For our older pension products the additional disclosable charges/expenses will reduce from 0.70% to 0.45%. The charges are in addition to any product or adviser charges that apply.

We're adding three new funds to the portfolio to replace the three we are removing. The new funds and the splits between them are as shown below:

  • Scottish Equitable Newton International Bond  - 28%
  • Overseas Corporate Bond Tracker – 20%
  • Overseas Government Bond Tracker  - 35%
  • Scottish Equitable Templeton Global Total Return Bond – 17%

These changes will be effective from 27 July 2016.

What does this mean for current investors?

Current investors don’t need to do anything. We routinely review our portfolios and may make changes where we have to, to try to ensure they continue to meet their objectives. The fund objectives and risk ratings are not changing.

Investors should be aware that the value of this investment can go down as well as up. There's a risk they may get back less than they invested.