On 6 October 2022, we’re closing the below funds, which are available as part of our insured Pension, Aegon Retirement Choices (ARC) and Aegon One Retirement (AOR) fund ranges.
When this happens, we’ll move remaining investors into the below alternative funds, unless they tell us to move them elsewhere before then:
- Investors in the Aegon ASI Global Absolute Return Strategies fund will move to the Aegon Stability fund
- Investors in the Aegon ASI Multi-Manager Cautious Managed Portfolio will move to the 50/50 Cautious Managed Collection
- Investors in the Aegon ASI World Income Equity fund will move to the Aegon BNY Mellon Global Income fund
- Investors in the Scottish Equitable Janus Henderson Emerging Markets Opportunities fund will move to the Global Emerging Markets Equity Select Portfolio
- Investors in the Aegon Jupiter Global Emerging Markets Focus (AOR) fund will move to the Global Emerging Markets Equity Select Portfolio (ARC)
We’ll be writing to all those affected in advance to let them know about the closures.
Why the funds are closing
We constantly monitor and refine our fund ranges. The funds haven’t grown in size as we’d expected, so we’ve decided to close the funds.
What this means for investors
Investors can stay invested and continue to pay in any regular contributions until the funds close. Then, on 6 October 2022, we’ll automatically switch their existing investment and all future contributions into the alternative funds, free of any switch charges.
Further details on the alternative funds, including charges, can be found in the tables below:
| Closing fund | Alternative fund |
|---|---|
| Aegon ASI Global Absolute Return Strategies fund | Aegon Stability fund |
| Total Charge* (for Pension investors) | |
| 1.87% | 1.86% |
| Fund Charge** (for AOR/ARC investors) | |
| 0.87% | 0.86% |
| Aegon Stability fund | |
| The fund aims to preserve the pension pot you have built up over the years by investing in a wide variety of investments including equities (company shares), and bonds (corporate or government), currencies, money market instruments, commodities and alternative investments from all over the world, directly or using derivative strategies. The fund aims to deliver a better return than you’d achieve from a bank deposit account over 3 to 5 years even if markets go down in value. In addition, if there’s a sudden fall in markets, we wouldn’t expect this fund to fall by more than 5%, although this is not guaranteed. | |
| Closing fund | Alternative fund |
|---|---|
| Aegon ASI Multi-Manager Cautious Managed Portfolio | 50/50 Cautious Managed Collection |
| Total Charge* (for Pension investors) | |
| 2.48% | 1.16% |
| Fund Charge** (for ARC investors) | |
| 1.48% | 0.40% |
| 50/50 Cautious Managed Collection | |
| This Collection aims to provide long-term capital growth by investing 50% in our UK Fixed Interest fund and 50% in global equities through our External Stockmarket Collection. The UK Fixed Interest fund invests in a diversified blend of mainly investment grade corporate bonds and government bonds and the External Stockmarket Collection invests in a mix of managed funds from four investment managers, currently Baillie Gifford, Invesco, Lazard and GLG Asset Management. | |
| Closing fund | Alternative fund |
|---|---|
| Aegon ASI World Income Equity fund | Aegon BNY Mellon Global Income fund |
| Total Charge* (for Pension investors) | |
| 1.87% | 1.55% |
| Fund Charge** (for ARC investors) | |
| 0.87% | 0.55% |
| Aegon BNY Mellon Global Income fund | |
| The fund aims to achieve income over an annual period together with capital growth over the long term (5 years or more) by investing at least 75% of the portfolio in global equities (company shares), including ordinary shares, preference shares and other equity-related securities. The fund can also invest in emerging markets; money market instruments, deposits, cash and near cash. The fund may use derivatives (financial instruments whose value is derived from other assets) with the aim of risk or cost reduction or to generate additional capital or income; and invest up to 10% in other collective investment schemes (including but not limited to another fund or funds managed by BNY Mellon funds). | |
| Closing fund | Alternative fund |
|---|---|
| Scottish Equitable Janus Henderson Emerging Markets Opportunities fund | Global Emerging Markets Equity Select Portfolio |
| Total Charge* (for Pension investors) | |
| 2.02% | 1.82% |
| Fund Charge** (for ARC investors) | |
| 1.02% | 0.87% |
| Global Emerging Markets Equity Select Portfolio | |
| This multi-manager portfolio aims to provide a good level of long-term capital growth by investing in a number of high-quality emerging market equity (shares in companies) funds from different managers, recommended by independent researchers Morningstar. The portfolio targets returns above the IA Global Emerging Markets sector median over rolling three-year periods and Morningstar help us to select and manage the blend of funds on an ongoing basis to help it achieve this. | |
| Closing fund | Alternative fund |
|---|---|
| Aegon Jupiter Global Emerging Markets Focus (AOR) fund | Global Emerging Markets Equity Select Portfolio (ARC) |
| Fund Charge** (for AOR/ARC investors) | |
| 1.01% | 0.87% |
| Global Emerging Markets Equity Select Portfolio (ARC) | |
| This multi-manager portfolio aims to provide a good level of long-term capital growth by investing in a number of high-quality emerging market equity (shares in companies) funds from different managers, recommended by independent researchers Morningstar. The portfolio targets returns above the IA Global Emerging Markets sector median over rolling three-year periods and Morningstar help us to select and manage the blend of funds on an ongoing basis to help it achieve this. | |
*This includes a standard 1% product charge, a fixed management fee and expenses that vary with the day-to-day costs of running the fund. Investors may pay a different product charge.
**This is on top of any product or adviser charge and includes a fixed management fee, plus expenses that vary with the day-to-day running of the fund.
For more information on the alternative funds above you can view the fund factsheet via the ‘Fund prices and performance’ page and viewing ‘Other fund ranges’ or ‘Aegon Retirement Choices (ARC)’.
There’s no guarantee the funds will meet their objectives. The value of an investment can fall as well as rise and is not guaranteed. Investors could get back less than they pay in.
What current investors need to do
If current investors are happy for us to move their investment into the alternative funds above, they don’t need to do anything. However, if investors feel that these funds aren’t suitable, they can switch their investment and redirect any future investment, free of any switch charge, into an alternative fund or funds of their choice.
If investors wish to do this they should complete an alteration of fund choice form and return it to us as soon as possible.
If you would like more information, please speak to a financial adviser. If you don’t have a financial adviser, you can visit moneyhelper.org.uk/choosing-a-financial-adviser to find the right one for you.