From 16 June 2021, we’re updating the charges on a number of Scottish Equitable M&G funds across our insured pension and Aegon Retirement Choices (ARC) fund ranges.
Investors will start to notice the update in charges on our fund factsheets, their plan statements or via their online account.
Why the charges have increased
The underlying fund manager, M&G Securities Limited (M&G), has changed the way it charges for the management of the funds. As a result, the charges for our version of the funds have been updated.
The underlying funds have charges that can change on a quarterly basis, so the charge you pay for the Scottish Equitable fund may vary in line with that on a quarterly basis but will not exceed the Total Charge*/Fund Charge** shown on the fund factsheet.
The new charges in more detail:
Pension
The old and new Total Charges* are shown in the table below:
| Fund name | Old Total Charge* | New Total Charge* (maximum) |
|---|---|---|
| Scottish Equitable M&G Corporate Bond | 1.61% | 1.65% |
| Scottish Equitable M&G Property Portfolio (Closed to new investors) | 1.81% | 1.85% |
| Scottish Equitable M&G Global Dividend | 1.86% | 1.90% |
| Scottish Equitable M&G Optimal Income | 1.71% | 1.78% |
| Scottish Equitable M&G Recovery | 1.81% | 1.85% |
| Scottish Equitable M&G Strategic Corporate Bond | 1.59% | 1.65% |
*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. You may pay a different product charge.
Aegon Retirement Choices (ARC)
The old and new Fund Charges** are shown in the table below:
| Fund name | Old Fund Charge** | New Fund Charge** (maximum) |
|---|---|---|
| Scottish Equitable M&G Corporate Bond (ARC) | 0.61% | 0.65% |
| Scottish Equitable M&G Property Portfolio (ARC) (Closed to new investors) | 0.81% | 0.85% |
| Scottish Equitable M&G Global Dividend (ARC) | 0.86% | 0.90% |
| Scottish Equitable M&G Optimal Income (ARC) | 0.71% | 0.78% |
| Scottish Equitable M&G Recovery (ARC) | 0.81% | 0.85% |
| Scottish Equitable M&G Strategic Corporate Bond (ARC) | 0.59% | 0.65% |
**This is on top of any product or adviser charge you pay and includes a fixed management fee plus expenses that vary with the day-to-day costs of running the fund.
What this means for investors
Existing investors don’t need to do anything. There are no other changes to the funds and the charge updates will be applied automatically. The fund objectives and Aegon risk ratings will remain the same.