On 24 March 2022, we’re closing the below funds, which are available as part of our insured Pension and Aegon Retirement Choices (ARC) 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 Scottish Equitable Lazard Global Equity Income fund will move to the Aegon BNY Mellon Global Income fund.
- Investors in the Scottish Equitable Schroder Absolute Return Bond fund will move to the Aegon AM Strategic Bond fund.
- Investors in the Scottish Equitable Schoder European Alpha Plus fund will move to the European Tactical fund.
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 24 March 2022, we’ll automatically switch their existing investment and all future contributions into the alternative funds, free of any switch charges.
When this happens, the new fund objective and old and new fund charges will be updated as follows:
| Closing fund | Alternative fund |
|---|---|
| Scottish Equitable Lazard Global Equity Income fund | Aegon BNY Mellon Global Income fund |
| Total Charge* (for Pension investors) | |
| 1.83% | 1.55% |
| Fund Charge** (for ARC investors) | |
| 0.83% | 0.55% |
| Aegon BNY Mellon Global Income fund objective | |
| 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 Schroder Absolute Return Bond fund | Aegon AM Strategic Bond fund |
| 1.60% | 1.56% |
| Fund Charge** (for ARC investors) | |
| 0.60% | 0.56% |
| Aegon AM Strategic Bond fund objective | |
| This fund aims to maximise total return (income plus capital growth) over any 7-year period by investing at least 80% of the fund in a diverse portfolio of corporate bonds and government and public securities issued anywhere in the world and denominated in any currency, with proportions being flexibly adjusted at different stages of the economic and market cycle. Derivatives may be used for investment purposes, for example exposure to assets may be gained through the use of derivatives. Derivatives may also be used for efficient portfolio management (including hedging to reduce currency risk). | |
| Closing fund | Alternative fund |
|---|---|
| Scottish Equitable Schroder European Alpha Plus fund | European Tactical fund |
| Total Charge* (for Pension investors) | |
| 1.95% | 1.03% |
| Fund Charge** (for ARC investors) | |
| 0.95% | 0.36% |
| European Tactical fund objective | |
| This fund aims to outperform the FTSE World Europe (ex UK) Index, net of fees, by investing in a concentrated portfolio of European equities (company shares) across all major industrial sectors of the European (ex UK) equity market. | |
*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.
More about the alternative funds
We’ve selected these funds as we believe they’re the most broadly comparable funds available within our fund range, in terms of what the funds invest in and what they aim to do. The fund objectives for the alternative funds can be found on the above table.
For more information on the alternative funds you can view the fund factsheet via the ‘Fund prices and performance’ page and viewing either ‘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 invest.
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 one you can find one in your area at moneyhelper.org.uk