Closure of the Scottish Equitable Investec Global Bond fundThu Sep 22 10:34:52 BST 2016 Back to results
On 7 July 2016, the Scottish Equitable Investec Global Bond fund will close across our pension and Aegon Retirement Choices (ARC) fund ranges.
When the fund closes, current investors will be moved into the Scottish Equitable Newton International Bond fund, unless they tell us to move their investment elsewhere before then.
Why is the fund closing?
The size of the underlying Investec Global Bond fund has reduced considerably in recent years and the fund manager doesn’t expect demand to increase. As a result, Investec has decided to close the fund.
Why the Scottish Equitable Newton International Bond fund?
We’ve carefully selected this fund as an alternative because we believe it to be the most comparable fund available within our range. It’s similar to the Scottish Equitable Investec Global Bond fund in terms of its risk rating, objectives and what it invests in.
The charges investors pay for their fund will also remain the same.
The fund aims to provide a total return comprised of income and capital growth by investing in bonds and similar debt investments issued by governments and other public entities located throughout the world.
How does this affect investors?
Current investors can stay invested and continue to pay in any regular contributions as normal until the fund closes.
Then from 7 July 2016, any investment in the Scottish Equitable Investec Global Bond, including all future contributions, will be automatically moved into the Scottish Equitable Newton International Bond fund.
We'll be writing to current investors in the fund shortly to tell them about the closure and give them the option to transfer into another fund of their choice, free of any switch charges, if they want to.
The value of investments can go down as well as up. There's a risk investors may get back less than they invested.