From 30 June 2026, we’re updating the objective and benchmark for the Scottish Equitable M&G Optimal Income fund available as part of our insured Pension and Aegon Retirement Choices (ARC) fund ranges.
Nothing else about the fund will change because of this. We’re writing to all those affected about these changes.
What’s changing and why
The fund objective explains how the fund invests and what it’s trying to achieve for investors. Benchmarks are used to measure a fund’s performance against similar types of investments, similar markets or regions.
M&G, the underlying fund manager, has updated their objective and benchmark to better reflect the aims of their fund. To make sure our version of the fund matches the underlying fund we’re updating the objective and benchmark of our fund.
Please note the benchmark changed on 7 May 2026. This means that performance shown before this date is against the old benchmark. Performance after this date is against the new benchmark – the Bloomberg Global Aggregate Index GBP-hedged. This change will be reflected in the next fund factsheet update.
The old and new information is in the tables below. We’ve highlighted the changes to the new objective.
Pension
| Old fund benchmark | New fund benchmark |
|---|---|
| IA Sterling Strategic Bond | Bloomberg Global Aggregate Index GBP-hedged |
| Old fund objective | New fund objective |
| The fund aims to provide a combination of capital growth and income, after charges, higher than the average return of the IA £ Strategic Bond Sector over any five-year period. At least 50% of the fund is invested in bonds issued by government and companies from anywhere in the world, including emerging markets. These bonds can be denominated in any currency. Up to 20% of the fund may be invested in company shares when the fund manager believes they offer better value than bonds. The fund is a flexible global bond fund, seeking to invest in a combination of assets that together provide the most attractive or ‘optimal’ income stream. The Scottish Equitable fund has higher charges than the underlying M&G fund and will therefore be less likely to meet this target. The underlying fund has 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 shown on the fund factsheet. | The fund aims to provide a combination of capital growth and income, after charges, higher than the average return of the Bloomberg Global Aggregate Index GBP-hedged over any five-year period. At least 70% of the fund is invested, directly or indirectly through derivatives, in debt securities, including investment grade bonds, below investment grade unrated securities and Asset Backed Securities (ABS) issued by government and companies from anywhere in the world, including emerging markets. These bonds can be denominated in any currency. The fund is a flexible global bond fund, seeking to invest in a combination of assets that together provide the most attractive or ‘optimal’ income stream. The underlying fund has 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 shown on the fund factsheet. |
Aegon Retirement Choices (ARC)
| Old fund benchmark | New fund benchmark |
|---|---|
| IA Sterling Strategic Bond | Bloomberg Global Aggregate Index GBP-hedged |
| Old fund objective | New fund objective |
| The fund aims to provide a combination of capital growth and income, after charges, higher than the average return of the IA £ Strategic Bond Sector over any five-year period. At least 50% of the fund is invested in bonds issued by government and companies from anywhere in the world, including emerging markets. These bonds can be denominated in any currency. Up to 20% of the fund may be invested in company shares when the fund manager believes they offer better value than bonds. The fund is a flexible global bond fund, seeking to invest in a combination of assets that together provide the most attractive or ‘optimal’ income stream. The Scottish Equitable fund has higher charges than the underlying M&G fund and will therefore be less likely to meet this target. The underlying fund has 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 shown on the fund factsheet. | The fund aims to provide a combination of capital growth and income, after charges, higher than the average return of the Bloomberg Global Aggregate Index GBP-hedged over any five-year period. At least 70% of the fund is invested, directly or indirectly through derivatives, in debt securities, including investment grade bonds, below investment grade unrated securities and Asset Backed Securities (ABS) issued by government and companies from anywhere in the world, including emerging markets. These bonds can be denominated in any currency. The fund is a flexible global bond fund, seeking to invest in a combination of assets that together provide the most attractive or ‘optimal’ income stream. The underlying fund has 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 shown on the fund factsheet. |
Source: Aegon UK
There’s no guarantee the fund will meet its objective. The value of an investment can fall as well as rise and isn’t guaranteed. Investors could get back less than they invest. We’ll update our literature and our website as soon as we can but investors may notice the old and new information in use for a time, for example on our fund factsheets.
What current investors need to do
Existing investors in this fund don’t need to do anything.
More information about this fund can be found on ‘Fund prices and performance’ and selecting either ‘Other fund ranges’ or ‘Aegon Retirement Choices (ARC)’ then searching for the fund name.
You should speak to your financial adviser in the first instance if you need advice about your investments. There’s likely to be a charge for this. If you don’t have a financial adviser, you can find one in your area by visiting Moneyhelper or find out more about advice services supported by Aegon by visiting Origen Financial Services.
Origen Financial Services Ltd is wholly owned by Aegon UK plc but operates independently to us.