Closure of the Aegon Merian Global Strategic Bond fund

Fund_Update.jpg

On 15 October 2019, we’re closing the Aegon Merian Global Strategic Bond fund. When the fund closes, we’ll move remaining investors into the Scottish Equitable Kames Strategic 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 Merian Global Strategic Bond 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 15 October 2019 we’ll automatically switch their existing investment in the Aegon Merian Global Strategic Bond fund, and all future contributions, into the Scottish Equitable Kames Strategic Bond fund, free of any switch charges.

The Fund Charge† for ARC investors will increase from 0.60% to 0.80%.

The Total Fund Charge* for pension investors will remain the same.

† 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 Kames Strategic Bond fund

We’ve selected the Scottish Equitable Kames Strategic Bond fund as we believe it to be the most comparable fund available within our fund range in terms of what it aims to do.

This fund aims to maximise total return (income plus capital growth) by investing in fixed interest securities in any currency, ranging from AAA rated government bonds through to high yield and emerging market corporate bonds. At least 80% of the fund will be invested in sterling denominated bonds and bonds in other currencies, hedged back to sterling.

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.

For more information on the alternative fund you can view the fund factsheet via the ‘Fund prices and performance’ page and viewing ‘Other fund ranges’ for pension investors or ‘Aegon Retirement Choices (ARC)’ for ARC investors.

What current investors need to do

If current investors are happy to be invested in the Scottish Equitable Kames Strategic 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 an alteration of fund choice form and return it to us before 15 October 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