We like to make sure that our customers are fully aware of all expenses associated with their pensions and savings investments, so we do yearly reviews of the charges and additional expenses attached to all of our funds, including those managed by external fund managers. As well as this, we constantly monitor the expenses levels to make sure that they’re current and up to date.
We’ve completed our 2007 review and you can find the results in the tables below. We’ll make the changes to all literature like key features and post-sale information from 28 September 2007, and to our fund factsheets from the end of quarter 3, 2007.
What are fund expenses?
Fund expenses are the costs associated with the administration and management of the underlying assets of the funds, for example bank charges and safe custody fees. These are in addition to the annual management charge (AMC) and, together with the AMC, form part of the total expenses. As with the yearly charge, we take all expenses into account when we price the funds, in other words they’re included in the unit price.
What products does this affect?
Additional fund charges and changes to expenses affect all pension, savings and investment products that offer access to unit-linked funds. The only exception to this is stakeholder pensions, where the fund expenses must be included within the yearly fund management charge.
Which funds are affected?
We’ve made changes to the fund-related expenses of the following pension and life (savings and investment) as shown below:
Pension Funds
| Fund name | Additional yearly charge/expenses disclosed pre-28 September 2007 (%) | Additional yearly charge/expenses disclosed from 28 September 2007 (%) | Difference (%) |
|---|---|---|---|
| Select Reserve | 0.15 | 0.10 | -0.05 |
| SE AEGON Global Bond | 0.70 | 0.65 | -0.05 |
| SE AEGON Investment Grade Bond | 0.70 | 0.65 | -0.05 |
| SE AEGON Sterling Corporate Bond | 0.55 | 0.50 | -0.05 |
| SE Artemis Capital | 0.90 | 0.85 | -0.05 |
| SE BGI World (ex UK) Index | 0.05 | 0.00 | -0.05 |
| SE Gartmore Cautious Managed | 0.75 | 0.70 | -0.05 |
| SE Gartmore US Opportunities | 1.00 | 0.90 | -0.10 |
| SE Invesco Perpetual Asian | 1.00 | 0.95 | -0.05 |
| SE Invesco Perpetual Corporate Bond | 0.75 | 0.80 | 0.05 |
| SE Invesco Perpetual Income | 0.80 | 0.95 | 0.15 |
| SE Investec Cautious Managed | 0.70 | 0.75 | 0.05 |
| SE JPMorgan Japan | 0.90 | 0.95 | 0.05 |
| SE JPMorgan Natural Resources | 0.80 | 0.95 | 0.15 |
| SE JPMorgan Premier Equity Growth | 0.90 | 0.95 | 0.05 |
| SE JPMorgan US | 0.85 | 0.95 | 0.10 |
| SE Schroder Tokyo | 0.85 | 0.95 | 0.10 |
| SE Schroder UK Mid-250 | 0.85 | 1.00 | 0.15 |
Personal Investment and Life Funds
| Fund name | Additional yearly charge/expenses disclosed pre-28 September 2007 (%) | Additional yearly charge/expenses disclosed from 28 September 2007 (%) | Difference (%) |
|---|---|---|---|
| Ethical | 0.15 | 0.10 | -0.05 |
| Ethical Cautious | 0.15 | 0.10 | -0.05 |
| Global | 0.05 | 0.00 | -0.05 |
| High Yield Corporate Bond | 0.15 | 0.10 | -0.05 |
| Select Reserve | 0.20 | 0.10 | -0.10 |
| Technology | 0.00 | 0.05 | 0.05 |
| SE AEGON Global Bond | 0.70 | 0.65 | -0.05 |
| SE AEGON Investment Grade Bond | 0.70 | 0.65 | -0.05 |
| SE AEGON Sterling Corporate Bond | 0.55 | 0.50 | -0.05 |
| SE Artemis Capital | 0.90 | 0.85 | -0.05 |
| SE Gartmore Cautious Managed | 0.75 | 0.70 | -0.05 |
| SE Gartmore US Opportunities | 1.00 | 0.90 | -0.10 |
| SE Invesco Perpetual Asian | 1.00 | 0.95 | -0.05 |
| SE Invesco Perpetual Corporate Bond | 0.75 | 0.80 | 0.05 |
| SE Invesco Perpetual Income | 0.80 | 0.95 | 0.15 |
| SE Investec Cautious Managed | 0.70 | 0.75 | 0.05 |
| SE JPMorgan Japan | 0.90 | 0.95 | 0.05 |
| SE JPMorgan Natural Resources | 0.80 | 0.95 | 0.15 |
| SE JPMorgan Premier Equity Growth | 0.90 | 0.95 | 0.05 |
| SE JPMorgan US | 0.85 | 0.95 | 0.10 |
| SE Schroder Tokyo | 0.85 | 0.95 | 0.10 |
| SE Schroder UK Mid-250 | 0.85 | 1.00 | 0.15 |
The additional charge/expenses levels have been rounded to the nearest 0.05% in line with regulatory guidelines.
AEGON Scottish Equitable reserves the right to vary the fund charges and expenses in the future.
If you need any more information on these changes please get in touch with your financial adviser. If you don’t already have one, the IFA Promotion Service or the Personal Finance Society can help you find one in your area.
