Q&A: Scottish Equitable BlackRock Aquila life funds

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Questions and answers about the changes to the Scottish Equitable BlackRock Aquila life funds – March 2018

What’s happening?

We are carrying out restructuring activity on some of our funds. You currently invest in one or more Aegon (Scottish Equitable Plc) funds via your pension plan that invest in BlackRock Aquila life funds. In this context, the BlackRock Aquila life funds are known as ‘underlying’ funds. Going forward, the Aegon fund will still invest in underlying BlackRock funds, but will invest in ‘mutual’ rather than ‘life’ versions of the funds, or a combination of 'life' and 'mutual' funds. The funds marked with an ^ in the table at the end of this document will invest in both ‘life’ and ‘mutual’ funds.

At the same time, we’re changing the names of the Aegon (Scottish Equitable Plc) funds. The name changes will be implemented gradually from March 2018 across our material, so you may notice both the old and new names in use for a time.

How does it affect me?

You do not need to take any action as a result of these changes.

The ‘mutual’ version of the funds will hold the same investments, be managed by the same investment managers, have the same fund objective and benchmark, and have the same Aegon risk rating as the ‘life’ version of the funds you currently hold. 

There is no change to the charge taken by Aegon for the fund(s) but, as with any investment fund, charges and additional expenses can vary over time.

Why are you changing the underlying BlackRock funds you invest in?

The BlackRock Aquila funds are ‘life’ funds and we are changing to ‘mutual’ funds that are either Tax Transparent Funds (TTF) or Unit Trusts.  Following recent regulatory changes (known as Solvency II) providers, such as Aegon, are exposed to increased costs and complexity to offer ‘life’ funds.  The increasing requirements to continue offering underlying ‘life’ funds are not sustainable which is why we are changing to ‘mutual’ funds.

Will there be any change to the investment strategies?

No. The underlying ‘mutual’ funds will invest in the same investment strategies and markets as the ‘life’ funds that your fund previously invested in. The fund objective, fund management team and approach will also remain unchanged.

I have invested in the Scottish Equitable Aquila life funds as part of a lifestyle strategy, will the fund/strategy still work in the same way? 

Yes, the strategy will continue to operate in the same way as it does now.

Will the value of my investment change as a result of changing to ‘mutual’ funds?

No. The value of your investment will not change as a result of the underlying fund changes we’re making. Funds are priced daily and their value changes in line with the markets they invest in, therefore the value of your investment can go down as well as up.

Will I pay any costs associated with these changes?

No. While there will be some costs in changing to ‘mutual’ funds, they will be paid for by Aegon (Scottish Equitable Plc). There is no cost to you.

Will the fund charge that I pay Aegon change as a result of these changes?

No, it will not change as a result of the restructure. However, as with any investment fund, charges and additional expenses can vary over time.

Will the Aegon risk rating change?

No, the Aegon risk rating for each fund will remain unchanged.

What protections do ‘mutual’ funds offer?  

All ‘mutual’ funds are regulated. The assets of ‘mutual’ funds are held by a custodian and overseen by a trustee. This means they are held separately, i.e. “ring-fenced”, from the assets of the fund manager, providing a robust level of protection. In the unlikely event of a failure of a ‘mutual’ fund caused by fraud, wilful neglect or similar and the fund manager refusing to compensate, Aegon (Scottish Equitable Plc) will seek to recover the fund amount from the fund manager. If the full amount cannot be recovered any shortfall is borne by the fund, which means the value of your investment could fall and you could get back less than you invested..

How do I reset my password so I can access the online services?

Visit aegon.co.uk/Login choose your ‘user type’ then select the service you wish to access. On the selected page, click on ‘Forgotten your password’.

The full list of the current and new fund names is shown below. 

Fund names

*The fund marked with an asterisk (*) is not changing its underlying structure but will still change its name.

The funds marked with an ^ will invest in both 'life' and 'mutual' funds. 

 

Current Aegon name New Aegon name
SE BlackRock Aquila 50/50 Global Equity Index Aegon BlackRock 50/50 Global Equity Tracker
SE BlackRock Aquila 50/50 Global Equity Index Lifestyle Aegon BlackRock 50/50 Global Equity Tracker Lifestyle
SE BlackRock Aquila 60/40 Global Equity Index Aegon BlackRock 60/40 Global Equity Tracker
SE BlackRock Aquila Currency Hedged Global Equity Aegon BlackRock 30/70 Currency Hedged Global Equity Tracker
SE BlackRock Aquila 40/60 Global Equity Index ^Aegon BlackRock 40/60 Global Equity Tracker
SE BlackRock Aquila 40/60 Global Equity Index Lifestyle ^Aegon BlackRock 40/60 Global Equity Tracker Lifestyle
SE BlackRock Aquila 75/25 Equity and Bond Index ^Aegon BlackRock 75/25 Equity and Bond Tracker
SE BlackRock Aquila 75/25 Equity and Bond Index Lifestyle ^Aegon BlackRock 75/25 Equity and Bond Tracker Lifestyle
SE BlackRock Aquila 50/50 Bond and Equity Index ^Aegon BlackRock 50/50 Equity and Bond Tracker
SE BlackRock Aquila 50/50 Bond and Equity Index Lifestyle ^Aegon BlackRock 50/50 Equity and Bond Tracker Lifestyle
SE BlackRock Aquila 30/70 Equity and Bond Index ^Aegon BlackRock 30/70 Equity and Bond Tracker
SE BlackRock Aquila Consensus ^Aegon BlackRock Consensus
SE BlackRock Aquila Consensus Lifestyle ^Aegon BlackRock Consensus Lifestyle
SE BlackRock Aquila Corporate Bond Index All Stocks Aegon BlackRock Corporate Bond Tracker
SE BlackRock Aquila European Equity Index Aegon BlackRock European Equity Tracker
SE BlackRock Aquila Japanese Equity Index Aegon BlackRock Japanese Equity Tracker
SE BlackRock Aquila Over 15 Years Corporate Bond Index Aegon BlackRock Over 15 Years Corporate Bond Tracker
SE BlackRock Aquila Over 15 Years UK Gilt Index Aegon BlackRock Over 15 Years UK Gilt Tracker
SE BlackRock Aquila Over 5 Years UK Index-Linked Gilt Index Aegon BlackRock UK Index-Linked Gilt Tracker
*SE BlackRock Aquila Pacific Rim Equity Index *Aegon BlackRock Pacific Rim Equity Tracker
SE BlackRock Aquila Retirement ^Aegon BlackRock Retirement
SE BlackRock Aquila Retirement II ^Aegon BlackRock Retirement II
SE BlackRock Aquila UK Equity Index Aegon BlackRock UK Equity Tracker
SE BlackRock Aquila US Equity Index Aegon BlackRock US Equity Tracker
SE BlackRock Aquila World (ex UK) Equity Index Aegon BlackRock World (ex UK) Equity Tracker
SE BlackRock Aquila Cash Index Aegon BlackRock Cash Tracker
SE BlackRock Aquila Emerging Markets Equity Index Aegon BlackRock Emerging Markets Equity Tracker
SE (ex NT) BlackRock Aquila Consensus Aegon (ex NT) BlackRock Consensus
SE (ex NT) BlackRock Aquila 50/50 Bond & Equity Aegon (ex NT) BlackRock 50/50 Bond & Equity
SE (ex NT) BlackRock Aquila 50/50 Global Equity Aegon (ex NT) BlackRock 50/50 Global Equity

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