On 13 December 2024, we’re closing the Aegon CT UK Social Bond (BLK) fund, available as part of our Aegon TargetPlan fund range.
To prepare for this, on or around 14 November 2024, we’re switching current investors into the Aegon M&G Corporate Bond (BLK) fund.
We’re writing to those affected to let them know about the closure.
Why we’re closing the fund
As part of our fund governance process, we regularly monitor and refine our fund ranges. The Aegon CT UK Social Bond (BLK) fund hasn’t grown in size as we’d expected so we’ve decided to close the fund.
More about the Aegon M&G Corporate Bond (BLK) fund
We’ve chosen this fund as we believe it’s the most broadly similar fund in our fund range in terms of where it invests and what it aims to do.
The fund aims to provide a combination of capital growth and income, after charges, higher than the average return of the IA Sterling Corporate Bond Sector over any five-year period. At least 70% of the fund is invested in investment grade bonds issued by companies, denominated in sterling or hedged back to sterling. It can also invest in government and high yield bonds. Investments are selected based on an assessment of macroeconomic, asset, sector and stock-level factors. Spreading investments across issuers, industries and countries is an essential element of the fund’s strategy. The Scottish Equitable 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 objective. The value of an investment can fall as well as rise and isn’t guaranteed. The value of your pension pot when you come to take benefits may be less than has been paid in.
For more information you can view the fund factsheet on the ‘Fund prices and performance’ page’ and selecting ‘TargetPlan funds’ and searching for the fund name.
What current investors need to do
If current investors are happy for their investment to move to the alternative 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 current investors wish to do this, they can view the funds available to their plan by logging into TargetPlan, selecting ‘Fund Information’ from the Dashboard and selecting the “Switch funds” button to make the switch.
If you would like more information, please speak to a financial adviser. If you don’t have a financial adviser, you can visit moneyhelper.org.uk/choosing-a-financial-adviser to find the right one for you.