Closure of the Aegon Ninety One Global Energy fund
On 23 February 2021, we’re closing the Aegon Ninety One Global Energy fund, available as part of our pension and Aegon Retirement Choices (ARC) fund ranges.
When the fund closes, we’ll move remaining investors into the Scottish Equitable JPMorgan Natural Resources fund, unless they tell us to move them elsewhere before then. We’ll be writing to all those affected in advance to let them know about the closure.
Normally we prefer to give investors at least 60 days’ notice of such a change but due to the nature of this change, this has not been possible.
Why we’re closing the fund
The underlying fund manager, Ninety One Fund Managers UK Limited, have decided to close the underlying fund on 5 March 2021. In preparation for this, on 23 February 2021 we’re closing the Aegon version of this fund and moving existing investors into the Scottish Equitable JPMorgan Natural Resources fund.
When this happens:
- the Total Charge* for pension investors will increase from 1.89% to 1.90%.
- The Fund Charge** for ARC investors will increase from 0.89% to 0.90%.
*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. Investors may pay a different product charge.
** This is on top of any product or adviser charge and includes a fixed management fee, plus expenses that vary with the day to day costs of running the fund.
What this means for investors
Investors can stay invested and continue to pay in any regular contributions until the fund closes. Then, on 23 February 2021, we’ll automatically switch their existing investment and all future contributions into the Scottish Equitable JPMorgan Natural Resources fund, free of any switch charges.
More about the Scottish Equitable JPMorgan Natural Resources fund
We’ve selected the Scottish Equitable JPMorgan Natural Resources fund as we believe it to be the most comparable fund available within our fund ranges, in terms of what the fund invests in and what it aims to do.
This fund aims to achieve long-term capital growth by investing mainly in shares of companies worldwide that are engaged in the production and marketing of commodities.
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’.
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. Investors could get back less than they originally invested.
What current investors need to do
If current investors are happy for us to move their investment into the Scottish Equitable JPMorgan Natural Resources fund, 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 as soon as possible.
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 https://www.moneyadviceservice.org.uk