Closure of the Scottish Equitable BlackRock Fixed Income Global Opportunities fund
On 15 October 2019, we're closing the Scottish Equitable BlackRock Fixed Income Global Opportunities fund across our pension and Aegon Retirement Choices (ARC) fund ranges.
When the fund closes, we’ll move remaining investors into the Scottish Equitable Kames Strategic Bond fund, unless they tell us to move it elsewhere before then.
Why we’re closing the fund
The Scottish Equitable BlackRock Fixed Income Global Opportunities fund hasn’t grown in size as we’d expected, so we’ve decided to close it.
What this means for investors
Investors can stay invested and continue to pay in any regular contributions until the fund closes.
Then, on 15 October 2019, we’ll automatically switch their existing investment in the Scottish Equitable BlackRock Fixed Income Global Opportunities fund, and all future contributions, into the Scottish Equitable Kames Strategic Bond fund, free of any switch charges. When this happens:
- The Fund Charge† for ARC investors will increase from 0.70% to 0.80%.
- The Total Fund Charge* for pension and life investors will reduce from 1.70% to 1.60%.
† 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.
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.
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 for us to move their investment into the Scottish Equitable Kames Strategic Bond 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 by 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.