From 13 July 2022, the Scottish Equitable M&G UK Select fund will be known as the Aegon M&G UK Sustain Paris Aligned fund. This fund is available across our insured pension and Aegon Retirement Choices (ARC) fund ranges.
The underlying fund manager, M&G, has also notified us that it’s incorporated certain sustainability-related considerations into its investment selection process. As a result, we’re amending our fund’s objective to ensure it remains consistent with the underlying fund.
Nothing else about the fund will change because of these updates. For example, the fund manager, charges and Aegon risk rating will remain the same.
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.
The changes in more detail
Name change
The underlying fund manager, M&G plc, is updating the fund name to better reflect how the fund invests, including its commitment to invest in companies that contribute towards the Paris Agreement climate change goal. To ensure consistency for our customers, we’re changing our fund name. The fund’s short names, which appear on plan statements, will also change to reflect this. Details can be found in the tables below:
| Pension funds | |||
|---|---|---|---|
| Existing fund name | Existing short name | New fund name | New short name |
| Scottish Equitable M&G UK Select fund | SE M&G UK SELECT | Aegon M&G UK Sustain Paris Aligned fund | AGN M&G SUS PAR ALIG |
| ARC funds | |||
|---|---|---|---|
| Existing fund name | Existing short name | New fund name | New short name |
| Scottish Equitable M&G UK Select (ARC) fund | ARC SE M&G UK SELECT | Aegon M&G UK Sustain Paris Aligned (ARC) fund | ARC AGN M&G SUS PAR |
Changes to the fund’s objective
The underlying fund manager has updated the investment objective for this fund to incorporate certain sustainability-related considerations. To ensure consistency, we’re updating our version of the fund. Details can be found in the table below:
| Existing fund objective | New fund objective |
|---|---|
| The fund aims to provide a combination of capital growth and income to deliver a return, after charges, that is higher than that of the FTSE All-Share Index over any five-year period. At least 80% of the fund is invested in the shares of companies that are based, or do most of their business, in the UK. The fund is a concentrated portfolio of fewer than 50 holdings. The strategy invests in companies with sustainable competitive advantages that have the opportunity to reinvest their capital in projects that can deliver the highest rates of return. The fund manager seeks to identify companies that generate rising cashflows and primarily allocate them to grow their businesses and dividends. The Scottish Equitable fund has higher charges than the underlying M&G fund and will therefore be less likely to meet this target. | The fund aims to provide a combination of capital growth and income to deliver a return, after charges, that is higher than that of the FTSE All-Share Index over any five-year period. At least 80% of the fund is invested in the shares of companies that are based, or do most of their business, in the UK. It aims to invest in companies that contribute towards the Paris Agreement climate change goal. The fund is a concentrated portfolio of fewer than 50 holdings and invests in securities that meet the ESG Criteria and Sustainability Criteria as defined by the underlying fund manager. The fund manager seeks to identify companies that generate rising cashflows and primarily allocate them to grow their businesses and dividends. The Aegon fund has higher charges than the underlying M&G fund and will therefore be less likely to meet this target. |
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 pay in.
Investors will start to notice the changes on their plan statements, in our literature and on our website from 13 July 2022. The changes will be implemented gradually across our material, so they may notice both the old and new fund names and objectives in use for a time.
For more information on these funds, you can view the fund factsheet via the ‘Fund prices and performance’ page on our website and selecting ‘Other fund ranges’ or ‘Aegon Retirement Choices (ARC)’.
What current investors need to do
Existing investors don’t need to do anything. Please speak to a financial adviser if you’re unsure about what these changes mean for you. If you don’t have a financial adviser you can find one in your area at moneyhelper.org.uk/choosing-a-financial-adviser