Closure of the Scottish Equitable Schroder UK Absolute Target fund

On 10 June 2015, the Scottish Equitable Schroder UK Absolute Target fund will close.

On that date we’ll transfer all current investors into the Aegon Stability fund. We’ve written to all those affected to tell them about this closure.

Why are we closing the fund?

We constantly review the funds in our range to ensure they continue to meet their long term objectives and serve the best interests of our customers.

Schroder, the manager of the Schroder UK Absolute Target fund, which the fund links to, has moved the focus of the fund from investing solely in the UK to now investing across continental Europe. In line with this change, sterling denominated stocks will be hedged to the Euro, while Euro denominated stocks will not be hedged.

We believe this change makes the fund fundamentally different from the one investors originally invested in. As a result, we’ve decided to close it and move investors into a more suitable alternative.

Why the Aegon Stability fund?

We have chosen the Stability fund as an alternative because it has a similar absolute return focus and low-risk profile to the Schroder UK Absolute Target Fund, albeit with the ability to invest globally.

The Aegon Stability fund aims to deliver positive returns in excess of a bank deposit account over the medium to long term, even if markets go down in value.

However, there's no guarantee the fund will achieve its aim and its value can go down as well as up. Investors may get back less than invested.

How does this affect investors?

New investors will not be able to invest in the Scottish Equitable Schroder UK Absolute Target fund and no new contributions from existing investors can be made into the fund.

For existing investors, we’ll automatically transfer their existing investment in the Scottish Equitable Schroder UK Absolute Target fund, and any future contributions, into the Aegon Stability fund on 10 June 2015 free of charge. The fund charge will also increase slightly from 0.85% to 0.87%. We’ve written to our customers to tell them and to give them the option to transfer into another fund of their choice if they want to.