Closure of two Scottish Equitable Fidelity funds

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On 13 February 2019, we’re closing the following Scottish Equitable Fidelity funds across our pension, life and Aegon Retirement Choices (ARC) fund ranges:

  • Scottish Equitable Fidelity WealthBuilder
  • Scottish Equitable Fidelity Multi-Asset Strategic

Once the funds close, we’ll move investors into alternative funds (listed below). We’ll be writing to all those affected by these changes to let them know about the closures.

Normally we prefer to give investors at least 60 days’ notice of such a change. However, due to the nature of these changes, in this case it has not been possible to give our standard notice period. We apologise for any inconvenience this may cause.

Why we’re closing the funds

Fidelity, the underlying fund manager is:

  • merging the underlying Fidelity WealthBuilder fund into the Fidelity Open World fund on 22 February 2019
  • merging the underlying Fidelity Multi-Asset Strategic fund into the Fidelity Multi-Asset Open Strategic fund on 8 March 2019.

The Fidelity Open World fund and the Fidelity Multi-Asset Open Strategic fund are not available within our Aegon insured fund range.

Therefore, in preparation for this, we’re closing the Scottish Equitable Fidelity WealthBuilder fund the Scottish Equitable Fidelity Multi-Asset Strategic fund and moving existing investors into the funds listed below on 13 February 2019.

The changes in more detail

We’ve carefully selected the alternative funds because we believe them to be the most comparable funds available within our fund range in terms of where they invest and what the funds aim to do.

Details of the old and new funds are outlined 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 13 February 2019
Fund objective Scottish Equitable Fidelity WealthBuilder Scottish Equitable Newton Global Income fund
This fund aims to achieve long-term capital growth by investing primarily in funds, in order to obtain exposure to global markets. The fund may also invest directly in transferable securities, money market instruments, cash and deposits. 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
1.30% 0.55%
Total charge*
Applies to pension and life version
2.30% 1.55%
Aegon risk rating Above-average Above-average

Source: Aegon UK

  Existing fund New fund effective from 13 February 2019
Fund objective Scottish Equitable Fidelity Multi-Asset Strategic 50/50 Cautious Managed Collection
This fund aims to achieve long-term capital growth by investing in a range of global assets providing exposure to bonds, equities (shares), commodities, property and cash.
The fund will invest mainly through other regulated collective investment schemes, including schemes managed by Fidelity, and may also invest directly in other transferable securities, money market instruments, cash and deposits.
This Collection aims to provide long-term capital growth by investing 50% in our UK
Fixed Interest fund and 50% in global equities through our External Stockmarket
Collection. The UK Fixed Interest fund invests in a diversified blend of mainly
investment grade corporate bonds and government bonds and the External
Stockmarket Collection invests in a mix of managed funds from four investment
managers, currently Baillie Gifford, Invesco, Lazard and MAN GLG Asset
Management.
Fund charge†
Applies to ARC version
0.90% 0.40%
Total charge*
Applies to pension version
1.90% 1.15%
Aegon risk rating Below-average Below-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.

What investors need to do

If investors are happy to be moved into the alternative fund, as listed above, they don’t need to do anything. However, if investors feel that the new 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 as soon as possible.

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