Closure of the Scottish Equitable Schroder Income Maximiser fund
On 16 May 2019, we’re closing the Scottish Equitable Schroder Income Maximiser fund.
When the fund closes, we’ll move remaining investors into the Scottish Equitable Schroder Income fund, unless they tell us to move it elsewhere before then.
We’ll be writing to all those affected by these changes in advance to let them know about the closure, which applies across our pension and Aegon Retirement Choices (ARC) fund ranges.
Why we’re closing the fund
We constantly monitor and refine our fund ranges. The Scottish Equitable Schroder Income Maximiser fund hasn’t grown as we’d expected, which means it’s too small to be economically viable. As a result, we’ve decided to close the fund.
What this means for investors
Investors can stay invested and continue to pay in any regular contributions as normal until the fund closes.
Then, on 16 May 2019 we’ll automatically switch their existing investment in the Scottish Equitable Schroder Income Maximiser fund, and all future contributions, into the Scottish Equitable Schroder Income fund, free of any switch charges.
The Fund Charge† for ARC investors and the Total Fund Charge* for pension investors will not change as a result of this closure.
† 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 Schroder Income fund
We’ve carefully selected the Scottish Equitable Schroder Income fund as an alternative fund as we believe it to be the most comparable fund available within our fund range in terms of what it aims to do.
The fund aims to provide income and capital growth by investing in equities of UK companies. The fund invests at least 80% of its assets in a concentrated range of equities of UK companies. These are companies that are incorporated, headquartered or have their principal business activities in the UK. The fund typically holds 30 to 50 companies. The fund focuses on companies that have certain ‘Value’ characteristics. Value is assessed by looking at indicators such as cash flows, dividends and earnings to identify securities which the investment manager believes have been undervalued by the market. The fund may also invest in other equities, collective investment schemes, fixed income securities, warrants, and hold cash. The fund may use derivatives with the aim of reducing risk or managing the fund more efficiently.
For more information on the alternative fund you can view the fund factsheet via the ‘Fund prices and performance’ page.
There is no guarantee the fund will meet its objective. The value of an investment can fall as well as rise and investors could get back less than they originally invested.
What current investors need to do
If current investors are happy to be invested in the Scottish Equitable Schroder Income 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 16 May 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