Aegon Merian Monthly Income Bond (AOR) fund closure
On 21 January 2021, we’re closing the Aegon Merian Monthly Income Bond fund (AOR) fund, available as part of our Aegon One Retirement (AOR) fund range.
When the fund closes, we’ll move investors into the Scottish Equitable Janus Henderson Strategic Bond (ARC) fund, unless they tell us to move them elsewhere before then. We’ll be writing to all those affected in advance to let them know about the closure.
Why we’re closing the fund
We constantly monitor and refine our fund ranges. The Aegon Merian Monthly Income Bond fund (AOR) fund hasn’t grown in size as we’d expected, so we’ve decided to close the fund.
What this means for investors
Investors can stay invested and continue to pay in any regular contributions until the fund closes. Then, on 21 January 2021, we’ll automatically switch their existing investment and all future contributions into the Scottish Equitable Janus Henderson Strategic Bond (ARC) fund, free of any switch charges.
When this happens the Fund Charge* for investors will reduce from 0.65% to 0.59%.
* 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.
More about the Scottish Equitable Janus Henderson Strategic Bond (ARC) fund
We’ve selected the Scottish Equitable Janus Henderson Strategic Bond (ARC) fund as we believe it to be the most comparable fund available within our fund range, in terms of what the fund invests in and what it aims to do.
This fund aims to outperform the IA Sterling Strategic Bond sector average, after charges, over any 5-year period. It does so by investing in a global portfolio of bonds of any quality, including high yield (non-investment grade) bonds, issued by governments or companies. The Scottish Equitable fund has higher charges than the underlying Janus Henderson fund and will therefore be less likely to meet this target.
There’s no guarantee the fund will meet its objectives. The value of an investment can fall as well as rise and is not guaranteed. Investors could get back less than they originally invested.
What current investors need to do
If current investors are happy for us to move their investment into the Scottish Equitable Janus Henderson Strategic Bond (ARC) fund, they don’t need to do anything. However, if investors feel that this fund isn’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.