Changes to some of our Scottish Equitable M&G funds

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Changes to some of our Scottish Equitable M&G funds

On 31 January 2020, the charges for some of the Scottish Equitable M&G funds reduced across our pension and Aegon Retirement Choices (ARC) fund ranges. Investors will notice the reduction on our fund factsheets, their plan statement or via their online account.

Why have the charges reduced?

The underlying fund manager, M&G Securities Limited (M&G), have changed the way they charge for the management of their funds. As a result, some of the charges have reduced.

Nothing else about the funds have changed as a result of this. The aims and objectives, fund manager and risk rating will remain the same.

The new charges in more detail:

  Scottish Equitable M&G Corporate Bond
Charges prior to 31 January 2020 Charges from 31 January 2020
Fund charge*Applies to ARC version 0.65% 0.61%
Total charge†Applies to pension version 1.65% 1.61%
  Scottish Equitable M&G Optimal Income
Charges prior to 31 January 2020 Charges from 31 January 2020
Fund charge*Applies to ARC version 0.77% 0.71%
Total charge†Applies to pension version 1.77% 1.71%
  Scottish Equitable M&G Recovery
Charges prior to 31 January 2020 Charges from 31 January 2020
Fund charge*Applies to ARC version 0.85% 0.81%
Total charge†Applies to pension version 1.85% 1.81%
  Scottish Equitable M&G Strategic Corporate Bond
Charges prior to 31 January 2020 Charges from 31 January 2020
Fund charge*Applies to ARC version 0.65% 0.59%
Total charge†Applies to pension version 1.65% 1.59%
  Scottish Equitable M&G Property Portfolio
Charges prior to 31 January 2020 Charges from 31 January 2020
Fund charge*Applies to ARC version 0.85% 0.81%
Total charge†Applies to pension version 1.85% 1.81%
  Scottish Equitable M&G Global Dividend
Charges prior to 31 January 2020 Charges from 31 January 2020
Fund charge*Applies to ARC version 0.90% 0.86%
Total charge†Applies to pension version 1.90% 1.86%

Source: Aegon UK

†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. You may pay a different product charge.

*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.

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 means for you. You can find one in your area at unbiased.co.uk