New Model Adviser - For professional financial planners

Register free for our breaking news email alerts with analysis and cutting edge commentary from our award winning team. Registration only takes a minute.

Aegon closes 'too small' Investec emerging market bond fund

Aegon has closed an emerging markets insured fund after it failed to achieve as much growth ‘as expected’

Aegon closes 'too small' Investec emerging market bond fund

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.

Share this story

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
More Content
7236.68 + 40 0.55% 04:35
More Content

Related Fund Managers

Sonal Desai
Sonal Desai
25/81 in Bonds - Global Flexible (Performance over 1 year) Average Total Return: -0.66%
Antoon de Klerk
Antoon de Klerk
42/67 in Bonds - Emerging Markets Global Local Currency (Performance over 1 year) Average Total Return: -5.89%
Werner Gey van Pittius
Werner Gey van Pittius
20/42 in Bonds - Emerging Markets Global Local Currency (Performance over 3 years) Average Total Return: 27.92%
More Content

BUSINESS

4 Comments Budd: How an accountant's error helped me understand advice

Budd: How an accountant's error helped me understand advice

It is important for young advisers to learn quickly that clients may not always take your advice, even when you know you are guiding them in the right direction

ADVICE

4 Comments Budd: How an accountant's error helped me understand advice

Budd: How an accountant's error helped me understand advice

It is important for young advisers to learn quickly that clients may not always take your advice, even when you know you are guiding them in the right direction

twitter_banner

INVESTMENT