VT Garraway Absolute Equity fund suspension January update
Aegon Retirement Choices (ARC) and Aegon Platform update
In July 2019, the VT Garraway Absolute Equity fund suspended trading with an intention to close at a later date.
This fund is an Open Ended Investment Company (OEIC) offered across our Aegon Retirement Choices (ARC) and Aegon Platforms.
In October 2019, Valu-Trac Investment Management (Valu-Trac) started the process of selling underlying investments in the fund and returned cash proceeds equal to approximately 50%* of any investment held.
We’ve now had confirmation from Valu-Trac that they intend to sell more of the underlying investments and return cash proceeds to investors. Valu-Trac stated:
‘The underlying investments of the fund have continued to be sold down and we are now in a position to return to you proceeds attributable to around 25% (calculated using the net assets as at 25 September 2019) of the value of your shares. We (Valu-Trac) intend to make this payment on or around 10 January 2020.’
Source – Valu-Trac Investment Management Limited, 30 December 2019.
* Investors in a General Investment Account (GIA) may need to consider how this payment affects any Capital Gains Tax calculation.
What this means for existing investors
For existing investors, the number of units held in the fund will not change, but the value of any holding will reduce to reflect the cash proceeds that will be paid out.
All proceeds will be added to an existing investor’s cash facility shortly after we receive them from Valu-Trac and will remain in there unless they give us a clear instruction to invest into an alternative fund or funds.
Valu-Trac estimate that full closure of the fund may take up to a further 6-9 months. Valu-Trac, Garraway Capital Management LLP and Bank of New York Mellon International Limited (the fund’s depository) will all continue to waive their fees until the fund closes.
We’ll let existing investors know when we receive confirmation from Valu-Trac regarding the final closure.
The time period for the full closure cannot be guaranteed as some of the assets held by the fund can’t be sold easily or in a controlled manner. The fund manager is seeking to close the fund in a controlled manner which they believe is in the best interests of remaining investors.
Find out more
We recognise that this may be a concern for you so if you have any questions regarding how the above affects your portfolio, you should contact your financial adviser in the first instance.
Alternatively, for Aegon Retirement Choices (ARC) investors please contact us at email@example.com or call us on 0345 680 1234.
For Aegon Platform investors, please contact us at firstname.lastname@example.org or call us on 0345 604 4001.
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