Closure of the Scottish Equitable UBS Multi-Asset Income fund
On 23 July 2019, we’re closing the Scottish Equitable UBS Multi-Asset Income fund across our pension and Aegon Retirement Choices (ARC) fund ranges.
When the fund closes, we’ll move remaining investors into the Aegon High Income 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 UBS Multi-Asset 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 23 July 2019, we’ll automatically switch their existing investment in the Scottish Equitable UBS Multi-Asset Income fund, and all future contributions, into the Scottish Equitable Aegon High Income, free of any switch charges. When this happens:
- The Fund Charge† for ARC investors will reduce from 0.90% to 0.60%.
- The Total Fund Charge* for pension investors will reduce from 1.90% to 1.60%.
† 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 Aegon High Income fund
We’ve selected the Aegon High Income 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 investors with an income along with the potential for capital growth by investing in a diversified mix of investments. Aegon has selected Kames Capital, another part of the Aegon Group, to manage this fund on its behalf. It’s designed for investors at or near retirement who want to take an income from their retirement savings without eroding their capital unduly. It will invest mainly in a mix of bonds, equities (company shares) and specialist income investments that provide the most attractive income opportunities globally.
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 Aegon High 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 23 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.