On 3 October 2024, we’re closing the With-Profits Cautious Life fund and the With-Profits Growth Life fund, available as part of our insured Life fund range.
When this happens, we’ll move remaining investors into the alternative funds below, unless they tell us to move them to different funds before then:
· Investors in the With-Profits Cautious Life fund will move into the 60/40 Cautious Managed Collection Life fund
· Investors in the With-Profits Growth Life fund will move into the Mixed Life fund.
The Total Charge for investors will not change when this happens. This includes a standard product charge of either 0.5%, 1.0% or 1.5% and expenses that vary with the day-to-day costs of running the fund.
We’re writing to all those affected to let them know about the closure.
Why we’re closing the funds
We closed these funds to new investors in 2013. Since then, the funds have been getting smaller. The funds will soon reach a size that means smoothing within the funds won’t work as it should. Smoothing aims to reduce the direct impact of market changes on fund investments. So we’ve made the decision to close the funds from 3 October 2024.
What this means for investors
Until the funds close, investors can stay invested and carry on paying into the funds. Then, on 3 October 2024, we’ll move their investment and all future investment into the alternative funds, free of any switch charge.
There’s more information about the alternative funds in the tables below:
Closing fund |
Alternative fund |
|---|---|
With-Profits Cautious Life fund |
60/40 Cautious Managed Collection Life fund |
60/40 Cautious Managed Collection Life fund objective |
|
This Collection aims to provide long-term capital growth by investing 60% in our UK Fixed Interest fund and 40% 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. |
|
Aegon Risk Rating |
|
Low risk |
Below-average risk |
Source: Aegon UK
Closing fund |
Alternative fund |
|---|---|
With-Profits Growth Life fund |
Mixed Life fund |
Mixed Life fund Objective |
|
This fund aims to outperform the ABI Mixed Investment 40-85% Shares sector median over 3 year rolling periods, net of fees, by investing mainly in a mix of UK and overseas equities. The remainder will be invested in fixed interest securities (bonds) and cash. |
|
Aegon Risk Rating |
|
Below-average risk |
Average risk |
Source: Aegon UK
The fund objective explains how the fund invests and what it’s trying to achieve for investors.
We use risk ratings to show the level of risk compared to other funds in our fund ranges, using a predefined scale set out by Aegon. The rating may differ to the fund risk ratings of other fund providers. You can find out more about our Aegon risk ratings on our website at aegon.co.uk/customer/support/what-do-your-risk-levels-mean
You can find more information about these funds in the fund factsheets on the ‘Fund prices and performance’ page of our website and viewing ‘Other fund ranges’.
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 invest.
What current investors need to do
If current investors are happy for their investment to move to the alternative funds, they don’t need to do anything. However, if investors feel that this fund isn’t suitable for them, they can move their investment with no switch charge, into a different fund or funds by logging into their online account.
If you’re invested in this fund you should speak to your financial adviser, if you have one, about your options before making any decisions. 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.