Closure of the Scottish Equitable Sarasin funds

Fund_Update.jpg

On 25 May 2019, we’re closing the following Scottish Equitable Sarasin funds across our pension and Aegon Retirement Choices (ARC) fund ranges:

  • Scottish Equitable Sarasin Global Equity Real Return
  • Scottish Equitable Sarasin Thematic Global Equity

Once these funds close, we’ll move investors in both of these funds into the Scottish Equitable Newton Global Income fund. We’ll be writing to all those affected by these changes in advance to let them know about the closure.

Why we’re closing the funds

We constantly monitor and refine our fund ranges. The Scottish Equitable Sarasin Global Equity Real Return fund and the Scottish Equitable Sarasin Thematic Global Equity fund haven’t grown as we’d expected, which means they’re too small to be economically viable. As a result, we’ve decided to close these funds.

What this means for investors

Investors can stay invested and continue to pay in any regular contributions as normal until their fund closes.

Then, on 25 May 2019, we’ll automatically switch their existing investment in the Scottish Equitable Sarasin Global Equity Real Return fund or the Scottish Equitable Sarasin Thematic Global Equity fund and all future contributions, into the Scottish Equitable Newton Global Income fund, free of any switch charges.

The changes in more detail

We’ve selected the Scottish Equitable Newton Global Income fund as we believe it to be the most comparable fund within our fund range in terms of what it aims to do and where it invests.

Details of the old and new funds are outlined in the table below. For more information on the alternative funds you can view the fund factsheets via the Fund prices and performance page:

 

Existing fund

New fund effective from 25 May 2019

Fund objective

Scottish Equitable Sarasin Global Equity Real Return

Scottish Equitable Newton Global Income fund 

This fund aims to achieve a real return over the long term. It will invest either directly or indirectly in a broad portfolio of global equities (shares) that satisfy one or more
investment themes that Sarasin expects to be key drivers of corporate profitability and
investment performance.

The fund aims to provide annual income and long-term capital growth by investing in equities (shares) and similar investments of companies listed or located throughout the world.

Fund charge*

Applies to ARC version

0.95%

0.55%

Total charge†

Applies to pension and life version

1.95%

1.55%

Aegon risk rating††

Above-average

Above-average

 

Existing fund

New fund effective from 25 May 2019

Fund objective

Scottish Equitable Sarasin Thematic Global Equity

Scottish Equitable Newton Global Income fund

The fund aims to achieve capital growth through investment in an internationally diversified portfolio of equities (shares). It invests in companies who fit their global
theme of long-term worldwide growth, independent of any one region or market.

The fund aims to provide annual income and long-term capital growth by investing in equities (shares) and similar investments of companies listed or located throughout the world.

Fund charge*

Applies to ARC version

1.00%

0.55%

Total charge†

Applies to pension and life version

2.00%

1.55%

Aegon risk rating††

Above-average

Above-average

Source: Aegon UK

*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.

††We grade each fund in relation to its risk against all other funds in our insured range. The rating is not an industry standard and it has no relevance or relationship to the fund risk ratings of other fund providers.

 

What investors need to do

If current investors are happy to be moved into the Scottish Equitable Newton Global Income fund then they don’t need to do anything. However, if they 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 25 May 2019.

If you’d like more information, please speak to your financial adviser. If you don’t have a financial adviser, you can find one in your area at unbiased.co.uk