On 23 October 2024, we’re closing the below funds, available as part of our insured Pension and Aegon Retirement Choices (ARC) fund ranges.
When the funds close, we’ll move investors into the Property fund, unless they tell us to move it to a different fund before then.
We’re writing to all those affected to let them know about the closure.
Why we’re closing the funds
As part of our fund governance process, we constantly monitor and refine our fund ranges. The funds haven’t grown in size as we’d expected, so we’ve decided to close the funds.
What this means for investors
Until the funds close, investors can stay invested and carry on paying into them. Then, on 23 October 2024, we’ll move their investment and all future investment into the alternative fund, free of any switch charge.
There’s more information about the alternative fund in the tables below:
Closing fund |
Alternative fund |
|---|---|
Property Select Portfolio fund |
Property fund |
Total Charge1 (for Pension investors) |
|
1.76% |
1.56% |
Fund Charge2 (for ARC investors) |
|
0.76% |
0.62% |
Source: Aegon UK
Closing fund |
Alternative fund |
|---|---|
Scottish Equitable Legal & General UK Property fund |
Property fund |
Total Charge1 (for Pension investors) |
|
1.64% |
1.56% |
Fund Charge2 (for ARC investors) |
|
0.64% |
0.62% |
Source: Aegon UK
1This includes a standard 1% product charge, a fixed management fee and expenses that vary with the day-to-day costs of running the fund.
2This is on top of any product or adviser charge and includes a fixed management fee, plus expenses that vary with the day-to-day costs of running the fund.
Source: Aegon UK
More about the Property fund
We’ve chosen this fund as we believe it’s the most broadly similar fund available in our fund range, in terms of what it invests in and what it aims to do.
The fund aims to maximise returns through capital and rental growth and outperform the ABI UK Direct Property sector median over a rolling three-year period. It does so by investing in a diversified portfolio of physical UK real estate assets and can invest up to 15% in property related equities (shares). The fund may, from time to time, hold a significant amount in cash. The fund manager will adopt an investment approach which aims to deliver positive financial, environmental, and social outcomes, subject to the fund’s investment restrictions.
You can find more information about this fund in the fund factsheet on the ‘Fund prices and performance’ page of our website and viewing ‘Other fund ranges’ or ‘Aegon Retirement Choices (ARC)’.
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’ve paid in.
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 move their investment with no switch charge, into a different fund or funds they choose.
If you’re invested in these funds and 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.