Closure of the Scottish Equitable EdenTree Higher Income fund
On 21 January 2021, we’re closing the Scottish Equitable EdenTree Higher Income fund, available as part of our insured pension fund range.
When the fund closes, we’ll move remaining investors into the Scottish Equitable Invesco Balanced Managed 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.
Why we’re closing the fund
We constantly monitor and refine our fund ranges. The Scottish Equitable EdenTree Higher Income fund hasn’t grown in size as we’d expected, so we’ve decided to close 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 21 January 2021, we’ll automatically switch their existing investment and all future contributions into the Scottish Equitable Invesco Balanced Managed fund, free of any switch charges.
When this happens the Total Charge* for pension investors will reduce from 1.75% to 1.30%.
*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.
More about the Scottish Equitable Invesco Balanced Managed fund
We’ve selected the Scottish Equitable Invesco Balanced Managed fund as we believe it to be the most comparable fund available within our fund range, in terms of what the fund invests in and what it aims to do.
This fund aims to achieve long-term capital growth with some income mainly generated by investing in a portfolio of global equities (shares) and bonds. The fund managers may also include investments they consider appropriate such as transferable securities, money market instruments, warrants, collective investment schemes, deposits and other permitted investments and transactions.
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 Invesco Balanced Managed 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 moneyadviceservice.org.uk