Aegon has closed an emerging markets insured fund after it failed to achieve as much growth ‘as expected’.
In a statement released yesterday, Aegon said it will be closing the Aegon Investec Emerging Markets Local Currency Debt fund on 26 March 2019 after it was deemed ‘too small to be economically viable’.
The fund, launched in 2014, is an insured fund available on the Aegon Retirement Choices platform, with Aegon providing the pension wrapper and Investec the underlying fund management. It had attracted only £320,000 in assets according to Trustnet.
The fund, managed by Werner Gey van Pittius and Citywire A-rated Antoon de Klerk, is the insured version of the Investec Emerging Markets Local Currency Debt fund. It is ranked eighth out of 36 funds in the emerging markets global currency sector over three years, according to Citywire ratings.
Aegon has chosen the Scottish Equitable Templeton Global Total Return Bond fund as the new home for investors in the Investec fund.
‘Investors can stay invested and continue to pay in any regular contributions as normal until the fund closes,’ Aegon said in a statement yesterday.
‘Then, on 26 March 2019, we will automatically switch their existing investment in the Aegon Investec Emerging Markets Local Currency Debt fund, and all future contributions, into the Scottish Equitable Templeton Global Total Return Bond fund, free of any switch charges.’
With the new arrangement, the total fund charge (including 100 basis point (bps) product fee) will go down from 190 bps to 175 bps.
Aegon said the new Scottish Equitable Templeton fund, managed by Sonal Desai of Franklin Templeton, will provide the ‘most comparable fund available within our fund range in terms of what it aims to do’.
The Scottish Equitable fund invests in a range of global fixed interest securities including government and corporate bonds.