On 20 September 2021, we’re closing two Aegon JPMorgan funds, which are available as part of our Aegon TargetPlan fund range.
When this happens, we’ll move remaining investors into the below alternative funds, unless they tell us to move them elsewhere before then:
- The Aegon JPMorgan Continental Europe Select Equity (BLK) fund is moving to the Aegon BlackRock European Growth (BLK) fund.
- The Aegon JPMorgan Life Global Equity All Countries (BLK) fund is moving to the Aegon BNY Mellon Global Equity (BLK) fund.
We''ll be writing to all those affected in advance to let them know about the closures.
Why the funds are closing
These funds are invested in underlying ‘JP Morgan Life’ funds. On 4 October 2021, the underlying fund manager, JP Morgan Life Limited, intends to close its life funds and subsequently wind up the company itself.
What this means for investors
Investors can stay invested and continue to pay in any contributions until the fund(s) close. Then, on 20 September, we’ll automatically switch their investment and all future contributions into the alternative funds, free of any switch charges.
When this happens, the additional expenses (these are the day-to-day costs associated with the administration and management of the underlying assets) for investors will remain the same.
Investors can view the Annual Management Charge (AMC) for investment funds available to their Plan by logging onto TargetPlan and selecting ‘Fund Information’ from the Dashboard.
More about the alternative funds
We’ve selected these alternative funds as we believe them to be comparable with the closing funds, in terms of where they invest and what they aim to do. The fund objectives for the funds which are closing is below, alongside the alternative fund objective:
| Current fund objective (Aegon JPMorgan Continental Europe Select Equity (BLK) fund) | New fund objective (Aegon BlackRock European Growth (BLK) fund) |
|---|---|
| The fund aims to achieve a long-term target return in excess of 2% per-year (before charges) by investing in the shares of companies across Europe, excluding the UK. The fund is well diversified and under normal circumstances is fully invested, with cash holdings kept to a minimum. It may also invest in emerging European markets and smaller companies. The Aegon TargetPlan fund has higher charges than the underlying JPMorgan and will therefore be less likely to meet this target. |
This fund invests mainly in European equities (not including the UK) and aims to produce a return in excess of its benchmark. |
| Current fund objective (Aegon JPMorgan Life Global Equity All Countries (BLK) fund) | New fund objective (Aegon BNY Mellon Global Equity (BLK) fund) |
| This fund aims to maximise long-term capital growth by investing primarily in equities throughout the world. The investment team aims to uncover stocks with the strongest growth and value attributes through a quantitative screen. These ideas are then validated by regional and sector specialists. |
This fund invests in stocks and shares quoted on major stock markets of the world. Investment in this fund involves a higher than usual degree of risk. |
For more information, you can view the fund factsheets via the ‘Fund prices and performance’ page on our website and selecting ‘TargetPlan funds’.
What current investors need to do
If current investors are happy for us to move their investment into the alternative funds, they don’t need to do anything. However, if investors feel that these funds aren’t suitable for them, 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 one you can find one in your area at www.moneyhelper.org.uk