Closure of the Scottish Equitable Schroder Strategic Credit fund
On 20 January 2022, we’re closing the Scottish Equitable Schroder Strategic Credit fund, available as part of our insured Pension and Aegon Retirement Choices (ARC) fund ranges.
When the fund closes, we’ll move remaining investors into the Aegon AM Strategic Bond 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 Schroder Strategic Credit 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 20 January 2022, we’ll automatically switch their existing investment and all future contributions into the Aegon AM Strategic Bond fund, free of any switch charges.
When this happens:
- The Total Charge* for Pension investors will reduce from 1.67% to 1.56%.
- The Fund Charge** for ARC investors will reduce from 0.67% to 0.56%.
*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.
**This is on top of any product or adviser charge and includes a fixed management fee, plus expenses that vary with the day to day running of the fund.
More about the Aegon AM Strategic Bond fund
We’ve selected the Aegon AM Strategic Bond fund as we believe it to be the most broadly comparable fund available within our fund range, in terms of what the fund invests in and what it aims to do.
The fund aims to maximise total return (income plus capital growth) over any 7-year period by investing at least 80% of the fund in a diverse portfolio of corporate bonds and government and public securities issued anywhere in the world and denominated in any currency, with proportions being flexibly adjusted at different stages of the economic and market cycle. Derivatives may be used for investment purposes, for example exposure to assets may be gained through the use of derivatives. Derivatives may also be used for efficient portfolio management (including hedging to reduce currency risk).
For more information on the alternative fund you can view the fund factsheet via the ‘Fund prices and performance’ page and viewing either ‘Other fund ranges’ or ‘Aegon Retirement Choices (ARC)’.
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 paid in.
What current investors need to do
If current investors are happy for us to move their investment into the Aegon AM 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 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 moneyhelper.org.uk