Changes to the Scottish Equitable Henderson UK Absolute Return fund

Back to results

From 1 November 2016, Henderson Global Investors, manager of the Scottish Equitable Henderson UK Absolute Return fund, made some changes to the fund.

These changes will also apply where this fund is available via Aegon Retirement Choices (ARC).

What’s changing?

The fund previously had the ability to invest up to 20% in assets based outside of the UK. However, from 1 November 2016 this increased to allow the fund manager the ability to invest up to 40% outside of the UK. As a result, the fund objective will be updated to reflect this change.

Why is the fund changing?

Henderson, the underlying fund manager, believes investment outside of the UK has added to fund performance recently, particularly during periods of stock market and currency market volatility. With this in mind, Henderson believes expanding the fund’s ability to invest outside of the UK will help the fund achieve its aim of delivering positive absolute returns over the longer term.

There’s no guarantee that the fund’s 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.

Updated fund objective

The old and new fund objectives are shown in the table below. The changes are effective from 1 November 2016:

Fund objective prior to 1 November 2016Fund objective effective from 1 November 2016
This fund aims to achieve a positive absolute return over the long term whether markets go up or down by investing in UK company shares. Derivatives will also be used to help it achieve its objective. It aims to typically deliver absolute (more than zero) returns in each year, although this is not guaranteed. There’s no guarantee that either the target or positive returns will be achieved. The Scottish Equitable version of this fund has higher charges than the underlying fund and will therefore be less likely to meet its objective. The additional charges/expenses for this fund include a performance fee that will rise and fall depending on performance day to day – so the charge you pay may vary significantly from the total charge quoted below, which is based on recent past performance. This fund aims to achieve a positive absolute return over the long term whether markets go up or down by investing mainly in UK company shares. The fund also has the ability to invest up to 40% in assets based outside of the UK. Derivatives will be used to help it achieve its objective. It aims to typically deliver absolute (more than zero) returns in each year, although this is not guaranteed. There’s no guarantee that either the target or positive returns will be achieved. The Scottish Equitable version of this fund has higher charges than the underlying fund and will therefore be less likely to meet its objective. The additional charges/expenses for this fund include a performance fee that will rise and fall depending on performance day to day – so the charge you pay may vary significantly from the total charge quoted below, which is based on recent past performance.

What does this mean for investors?

Existing investors don’t need to do anything. The fund manager, additional disclosable charges and Aegon risk rating will remain the same.

The changes will be implemented gradually across our material so you may notice the old and new information for a short time.

Please speak to financial adviser if you’re unsure about what the changes mean for you. You can find one in your area at unbiased.co.uk.