Closure of the Aegon Investec Emerging Markets Local Currency Debt fund

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On 26 March 2019, we’re closing the Aegon Investec Emerging Markets Local Currency Debt fund. When the fund closes, we’ll move remaining investors into the Scottish Equitable Templeton Global Total Return Bond fund, unless they tell us to move their investment elsewhere before then.

We’ll be writing to all those affected by these changes in advance to let them know about the closure, which applies across our pension and Aegon Retirement Choices (ARC) fund ranges.

Why we’re closing the fund

We constantly monitor and refine our fund ranges. The Aegon Investec Emerging Markets Local Currency Debt fund hasn’t grown as we’d expected, which means it’s too small to be economically viable. As a result, we’ve decided to close the fund.

What this means for investors

Investors can stay invested and continue to pay in any regular contributions as normal until the fund closes.

Then, on 26 March 2019 we’ll automatically switch their existing investment in the Aegon Investec Emerging Markets Local Currency Debt fund, and all future contributions, into the Scottish Equitable Templeton Global Total Return Bond fund, free of any switch charges.

The Fund Charge† for ARC investors will reduce from 0.90% to 0.75%.

The Total Fund Charge* for pension investors will reduce from 1.90% to 1.75%.

† 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. The fund charges may differ for Retiready (RR) or Aegon One Retirement (AOR).

*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.

More about the Scottish Equitable Templeton Global Total Return Bond fund

We’ve carefully selected the Scottish Equitable Templeton Global Total Return Bond fund as an alternative fund as we believe it to be the most comparable fund available within our fund range in terms of what it aims to do. However, it has a different benchmark and sits within a different Association of British Insurers (ABI) sector than the existing fund. The fund objective for the fund is shown below:

The fund aims to achieve a total return over the long-term from a combination of income, capital growth and currency exchange rate gains. It will do so by investing mainly in a broad range of fixed interest securities from all over the world, including government and government-related bonds and investment – and non-investment grade corporate bonds of all durations. It may also invest in permitted debt and currency related derivatives.

For more information on the alternative fund you can view the fund factsheet via the ‘Fund prices and performance’ page.

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. You could get back less than you originally invested.

What current investors need to do

If current investors are happy to be invested in the Scottish Equitable Templeton Global Total Return Bond fund then 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 a switch form and return it to us before 26 March 2019.

If you would like more information, please speak to a financial adviser. If you don’t have one, you can find one in your area at unbiased.co.uk