Closure of the Scottish Equitable F&C Responsible UK Equity Growth fund

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On 11 July 2019, we’re closing the Scottish Equitable F&C Responsible UK Equity Growth fund across our pension and Aegon Retirement Choices (ARC) fund ranges.

When the fund closes, we’ll move remaining investors into the Socially Responsible Equity fund, unless they tell us to move it 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 F&C Responsible UK Equity Growth 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 11 July 2019, we’ll automatically switch their existing investment in the Scottish Equitable F&C Responsible UK Equity Growth fund, and all future contributions, into the Scottish Equitable Socially Responsible Equity, free of any switch charges. When this happens:

  • The Fund Charge† for ARC investors will reduce from 0.80% to 0.50%.
  • The Total Fund Charge* for pension investors will reduce from 1.80% to 1.50%.

† 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 Socially Responsible Equity fund

We’ve selected the Socially Responsible Equity 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 achieve long-term capital growth by investing in the equities (shares of companies) of UK-quoted companies that promote environmental and social sustainability. It avoids those companies that cause harm. The fund invests according to a set of positive criteria, which guide it towards companies demonstrating socially and environmentally responsible behaviour. The fund may also invest in bonds from time to time.

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 Socially Responsible Equity 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 a switch form and return it to us before 11 July 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.