Changes to four of our Scottish Equitable BlackRock funds

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We’ve made changes to the fund objectives of four Scottish Equitable BlackRock funds. These changes were effective from 30 June 2019 and apply to our pension and Aegon Retirement Choices (ARC) fund ranges. The affected funds are listed below:

  • Scottish Equitable BlackRock Fixed Income Global Opportunities
  • Scottish Equitable BlackRock Dynamic Diversified Growth
  • Scottish Equitable BlackRock Gold and General
  • Scottish Equitable BlackRock US Dynamic

Why we made these changes

The underlying fund manager, BlackRock, has updated the underlying fund descriptions to clarify their objectives. The existing use of derivatives, used by BlackRock to ensure efficient portfolio management (which means the manager aims to provide a level of return in line with a specific level of risk), has now been extended to include the ability to use derivatives for investment purposes.

BlackRock has already implemented these changes to the underlying funds, and we’ve amended our Scottish Equitable funds in line with the changes from 30 June 2019 onwards.

Nothing else about the funds have changed as a result of this; the fund manager, Aegon risk ratings and charges have remained the same.

The changes in more detail

Details of the old and new fund objectives are outlined in the table below:

Fund name Existing objective prior to 30 June 2019 New objective effective from 30 June 2019
SE BlackRock Fixed Income Global Opportunities The fund aims to achieve a total return over the medium to long-term by investing in a portfolio of fixed income securities and money-market instruments denominated in various currencies issued by governments, agencies and companies worldwide. The fund aims to achieve a total return over the medium to long-term by investing in a portfolio of fixed income securities and money-market instruments denominated in various currencies issued by governments, agencies and companies worldwide. Derivatives may be used for investment purposes and for the purposes of efficient portfolio management.
SE BlackRock Dynamic Diversified Growth This fund aims to deliver a total return over the medium term which exceeds the Bank of England Base Rate. It will invest principally in fixed interest stocks (corporate and government bonds), UK and overseas equities (shares), units in collective investment schemes, cash and near cash, money market instruments and deposits. The fund may also use financial derivatives with the aim of managing risk and hold indirect exposure to alternative asset classes such as commodities or property. There's no guarantee that either the target or positive returns will be achieved. The Scottish Equitable BlackRock Dynamic Diversified Growth fund has higher charges than the underlying fund and will therefore be less likely to meet this target. This fund aims to deliver a total return over the medium term which exceeds the Bank of England base rate. It will invest principally in fixed interest stocks (corporate and government bonds), UK and overseas equities (shares), units in collective investment schemes, cash and near cash, money market instruments and deposits. The fund may also use financial derivatives for investment purposes, efficient portfolio management and with the aim of managing risk and holding indirect exposure to alternative asset classes such as commodities or property. There's no guarantee that either the target or positive returns will be achieved The Scottish Equitable BlackRock Dynamic Diversified Growth fund has higher charges than the underlying fund and will therefore be less likely to meet this target.
SE BlackRock Gold and General Fund This is a specialised fund, which aims to achieve long-term capital growth by investing in the shares of companies mainly involved in the mining of, or exploration for, gold and other precious metals. Owing to the volatile nature of this sector, the fund may fluctuate more significantly than other funds in our range. This is a specialised fund, which aims to achieve long-term capital growth by investing in the shares of companies mainly involved in the mining of, or exploration for, gold and other precious metals. Owing to the volatile nature of this sector, the fund may fluctuate more significantly than other funds in our range. Derivatives may be used for investment purposes and for the purposes of efficient portfolio management.
SE BlackRock US Dynamic Fund This fund aims to achieve long-term capital growth by investing mainly in the shares of companies incorporated or listed in the United States. The manager focuses on stocks, which exhibit either growth or value characteristics and will choose one or the other depending on which they believe the market will favour. It may also invest in collective investment schemes and other types of investment managed by third parties. This fund aims to achieve long-term capital growth by investing mainly in the shares of companies incorporated or listed in the United States. The manager focuses on stocks, which exhibit either growth or value characteristics and will choose one or the other depending on which they believe the market will favour. It may also invest in collective investment schemes and other types of investment managed by third parties. Derivatives may be used for investment purposes and for the purposes of efficient portfolio management.

Source: Aegon UK

We’ll be updating our literature with these changes from 30 June 2019 onwards, but you may notice both the old and new fund objectives in use for a time.

There’s no guarantee that fund objectives will be met. The value of this investment can go down as well as up and investors may get back less than they invested.

What investors need to do

Existing investors don’t need to do anything. Please speak to a financial adviser if you’re unsure about what these changes mean for you. If you don’t have a financial adviser, you can find one in your area at unbiased.co.uk