Changes to Scottish Equitable Investec insured funds

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From 31 January 2021, funds containing ‘Investec’ in their name will change to ‘Ninety One’. These changes will be applied across our pension, Aegon Retirement Choices (ARC) and Aegon Target Plan insured fund ranges.

The underlying fund manager has also notified us that they’ve updated the fund objectives and benchmarks for some of the underlying funds, which they believe better reflects their investment strategy. As a result, we’re updating some of our funds’ benchmarks and fund objectives to ensure they remain consistent with the underlying funds.

Nothing else about the funds will change because of these updates. For example, the fund manager, charges and risk ratings will remain the same.

The changes in more detail

Name changes

During their demerger from the Investec Group, Investec Asset Management rebranded to “Ninety One” and is now an independent global asset manager. To ensure consistency for customers, we’re changing our fund names to reflect the change. Details can be found in the table below:

Pension funds
Existing fund name Existing short name New fund name New short name
Scottish Equitable Investec Cautious Managed fund SE INVESTEC CAUTIOUS Aegon Ninety One Cautious Managed fund AGN 91 CAUTIOUS MGD
Scottish Equitable Investec Asia ex Japan SE INVESTEC ASIA XJP Aegon Ninety One Asia Pacific Franchise AGN 91 ASIA PAC FRAN
Scottish Equitable Investec Global Energy SE INVESTEC GL ENRGY  Aegon Ninety One Global Energy AGN 91 GBL ENRGY

Source: Aegon UK

ARC funds
Existing fund name Existing short name New fund name New short name
Scottish Equitable Investec Cautious Managed (ARC) ARC SE INVESTEC CAU Aegon Ninety One Cautious Managed (ARC) ARC AGN 91 CAU MGD
Scottish Equitable Investec Asia ex Japan (ARC) ARC SE INVESTEC ASIA Aegon Ninety One Asia Pacific Franchise (ARC) ARC AGN 91 AS PAC FR
Scottish Equitable Investec Global Energy (ARC) ARC SE INVESTEC G EN Aegon Ninety One Global Energy (ARC) ARC AGN 91 GBL ENRGY

Source: Aegon UK

Target Plan funds
Existing fund name New fund name
Aegon Investec Emerging Market Debt (BLK) Aegon Ninety One Emerging Market Debt (BLK)
Aegon Investec Global Dynamic (BLK) Aegon Ninety One Global Dynamic (BLK)
Aegon Investec Diversified Growth (BLK) Aegon Ninety One Diversified Growth (BLK)

 Source: Aegon UK

Changes to fund objectives

In 2019, the Financial Conduct Authority (FCA) released guidelines (the Asset Management Market Survey) with the aim of making fund objectives clearer and easier to understand for investors. As a result, the underlying fund manager has updated the fund objectives for these funds. To ensure consistency we’ve updated our versions of the funds. Details can be found in the tables below:

Pension and Aegon Retirement Choices

Scottish Equitable Investec Cautious Managed fund

Old fund objective New fund objective
This fund aims to provide a combination of income and long-term capital growth by investing conservatively in a diversified portfolio of equities (shares), bonds and other fixed interest securities of high quality and marketability. At all times the fund’s equity exposure will be limited to a maximum of 60% of the fund’s value. This fund targets a return of UK Consumer Prices Index (CPI) +4% per year (before charges) over a five-year rolling period. It does so by investing around the world in a diverse range of shares of companies (up to 60% of the fund’s value at any time) and bonds. The fund also has the flexibility to invest outside of these asset classes. The fund may also invest in other transferable securities, money market instruments, cash or near cash, deposits, up to 10% in units or shares of other funds (which may be managed by a Ninety One group company, or a third party) and derivatives, (financial contracts whose value is linked to the price of an underlying asset) which may be used for investment purposes (i.e. in order to achieve the fund's investment objectives) or for efficient portfolio management purposes e.g. with the aim of either managing the fund risks or reducing the costs of managing the fund. The Aegon fund has higher charges than the underlying Investec fund and will therefore be less likely to meet this target.

Source: Aegon UK

Scottish Equitable Investec Asia ex Japan fund

Existing fund objective New fund objective
The fund aims to achieve long term capital growth primarily through investment in equities issued by companies in the Asia Pacific region, excluding Japan and in derivatives the underlying assets of which are equities issued by companies in the Asia Pacific region, excluding Japan. The Asia Pacific region, excluding Japan includes Australia, Hong Kong, Singapore, Malaysia, Thailand, Taiwan, South Korea, the Philippines, Indonesia, China, India and New Zealand. The fund aims to achieve long-term capital growth over a five-year rolling period, by investing mainly (at least two-thirds) of the portfolio in shares and related derivatives of companies in the Asia Pacific region, excluding Japan. The Asia Pacific region, excluding Japan includes Australia, Hong Kong, Singapore, Malaysia, Thailand, Taiwan, South Korea, the Philippines, Indonesia, China, India, New Zealand and Vietnam. The fund may also invest (up to one-third) in other transferable securities, money market instruments, cash or near cash, deposits, up to 10% in units or shares in other funds (which may be managed by a Ninety One group company, or a third party) and derivatives. Derivatives may be used for managing the fund in a way that is designed to reduce risk or cost, generating income or growth with a low level of risk and/or, occasionally, for investment purposes. As a result, the fund may have some exposure to Japanese companies through these investments.

Source: Aegon UK

Scottish Equitable Investec Global Energy fund

Existing fund objective New fund objective
This fund aims to achieve long-term growth, mainly through investment in equities (shares) issued by companies around the world involved in the exploration, production or distribution of oil, gas and other energy sources, or companies that service the energy industry. The fund may also invest in derivatives, the underlying assets of which are shares of companies operating in the energy sector. This fund aims to achieve long-term growth over a five-year rolling period, mainly (at least two-thirds) through investment in equities (shares) issued by companies around the world involved in the exploration, production or distribution of oil, gas and other energy sources, or companies that service the energy industry. The fund may also invest (up to one-third) in other transferable securities, money market instruments, cash or near cash, deposits, up to 10% in other funds (which may be managed by a Ninety One group company, or a third party) and derivatives , the underlying assets of which are shares of companies operating in the energy sector. These may be used for managing the fund in a way that is designed to reduce risk or cost, generating income or growth with a low level of risk and, occasionally, investment purposes.

Source: Aegon UK

Aegon TargetPlan

Aegon Investec Diversified Growth (BLK) fund

Existing fund objective New fund objective
The fund will invest wholly in the Investec Diversified Growth Fund, a third party UCITS fund. The Investec Diversified Growth fund aims to provide real returns (through a combination of income and growth in value) in Sterling over the long term. Real returns are returns in excess of UK inflation, (currently measured by the increase in the UK Consumer Price Index). The fund invests around the world in a range of different assets. Investments include equities (e.g. shares of companies); bonds (contracts to repay borrowed money which typically pay interest at fixed times); property; commodities; cash and alternative asset classes (such as hedge funds and private equity funds). Investment may be directly in the assets themselves (excluding property and commodities) or indirectly through other funds (up to 100%) or derivatives (financial contracts whose value is linked to the price of an underlying asset). Exposure to equities may be up to 85%. The bonds invested in are issued by governments and companies and may be of investment grade (high quality) as rated by the credit rating agencies (companies that rate the ability of the issuers of bonds to repay borrowed money). The fund may also hold bonds rated below investment grade. The fund may invest more than 35% of its assets in securities issued or guaranteed by an EEA state. The fund aims to provide long-term real returns (through a combination of income and capital growth). Real returns are returns in excess of UK inflation (currently measured by the increase in the UK Consumer Price Index). The fund targets a performance return of UK CPI +5% (gross of fees) per annum over rolling 5-year periods and is therefore managed with reference to an index. The fund’s real returns and its performance target are not guaranteed over the long term or over any period of time and you may get back less than you invested.

The fund invests around the world in shares of companies; bonds (contracts to repay borrowed money which typically pay interest at fixed times); property; commodities; other funds (which may be managed by the Investment Manager, other companies in the same group as the Investment Manager or a third party); derivatives (financial contracts whose value is linked to the price of an underlying asset) and cash. Exposure to shares may be up to 85%. The bonds invested in are issued by governments or companies.

Investments may be directly in the assets themselves (excluding property and commodities) or indirectly through other investments and other funds (up to 100%). The fund also has the flexibility to invest outside of the aforementioned asset classes.

Derivatives may be used for investment purposes (i.e. in order to achieve the fund's investment objectives) or for efficient portfolio management purposes e.g. with the aim of either managing the fund risks or reducing the costs of managing the fund.

Source: Aegon UK

Aegon Investec Emerging Market Debt (BLK) fund

Existing fund objective New fund objective
The fund will invest wholly in the Investec Emerging Markets Debt Blended fund, a third party UCITS fund. The Investec Emerging Market Debt Blended fund aims to provide income and generate capital gains over the long term primarily through investment in public sector, sovereign and corporate fixed interest instruments issued by emerging market borrowers or borrowers that derive a predominant part of their economic activity from emerging market countries. The fund aims to provide income and capital growth over the long term (at least 5 years), by investing primarily (at least two-thirds) in bonds (contracts to repay borrowed money which typically pay interest at fixed times), or similar debt-based assets issued by emerging market borrowers or borrowers that have significant economic exposure to emerging market countries.

These assets may be denominated in either local currencies (the currency of the issuing country) or hard currencies (globally traded major currencies). They may have any credit rating or be unrated and may be issued by any borrower e.g. governments or companies. The fund uses derivatives (financial contracts whose value is linked to the price of bonds or similar debt based assets) to protect against the impact of changes in the value between its base currency (Pounds Sterling) and US Dollars. The currency hedging in the fund seeks to reduce, but is not intended to remove, currency risk.

The fund may invest up to 10% in units or shares in other funds (which may be managed by a Ninety One group company, or a third party) and derivatives. The fund may also invest (up to one-third) in other transferable securities, money market instruments, cash or near cash and deposits. Derivatives may be used for investment purposes and/or managing the fund in a way that is designed to reduce risk or cost and/or generate income or growth with a low level of risk.

Source: Aegon UK

Aegon Investec Global Dynamic (BLK) fund

Existing fund objective New fund objective
The Fund will invest wholly in the Investec Global Dynamic Fund, a third party UCITS fund. The Investec Global Dynamic Fund aims to grow the value of your investment over the long term. The Fund invests around the world primarily in a focussed selection of company shares and may invest in related derivatives (financial contracts whose value is linked to the price of an underlying asset). The fund aims to provide capital growth (grow the value of your investment) over at least 5 years. The fund invests primarily (at least two-thirds) in a focussed selection of company shares (of any size and any industry sector) around the world and may invest in related derivatives (financial contracts whose value is linked to the price of an underlying asset).

The fund may invest up to 10% in units or shares in other funds (which may be managed by a Ninety One group company, or a third party) and derivatives. The fund may also invest (up to one-third) in other transferable securities, money market instruments, cash or near cash and deposits. Derivatives may be used for managing the fund in a way that is designed to reduce risk or cost, generating income or growth with a low level of risk and, occasionally, investment purposes.

Source: Aegon UK

What current 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 moneyadviceservice.org.uk.