Fund news

Eight new funds from Lazard, BlackRock and Schroders

AEGON Scottish Equitable and AEGON Scottish Equitable International are delighted to announce the launch of eight new sector funds, including:

two emerging markets funds
two fixed income funds
a global equity fund
a European equity fund
a US equity fund
an absolute return fund

The funds, managed by our existing investment partners BlackRock, Lazard and Schroders, add strength and depth to our sector and specialist funds and complement our strong managed fund range.

The new funds in brief

Read on to get the key facts about each of the new funds.

Scottish Equitable Lazard Emerging Markets
Scottish Equitable BlackRock UK Absolute Alpha
Scottish Equitable BlackRock European Dynamic
Scottish Equitable BlackRock UK Dynamic
Scottish Equitable Schroder US Small & Mid Cap
Scottish Equitable Schroder Global Emerging Markets
Scottish Equitable Schroder Strategic Bond
Scottish Equitable Schroder Corporate Bond

Scottish Equitable Lazard Emerging Markets fund and Scottish Equitable International Lazard Emerging Markets fund

The fund aims to achieve long-term capital growth by investing in companies located in, or doing significant business in, emerging market countries. It has a broad base with no explicit regional or country bias, and works within strict risk controls, focusing on high-quality companies with sustainable profitability.

Key details
Sector	Life	ABI Global Emerging Markets Equity life sector
	Pensions	ABI Global Emerging Markets Equity pension sector
	Offshore	Lipper UK Offshore Equity Global Emerging Markets
Launch date		26 June 2008
Benchmark		MSCI Emerging Markets Index
Risk rating		Higher*
Current additional disclosable yearly charges/expenses		Life/Pensions: 0.95%
Offshore current disclosable yearly charge/expenses		Series A 1.95%, Series B 1.35%
*The risk rating for each fund is based on its risk relative to other funds in our full fund range. It’s not its risk against industry benchmarks. We regularly review the risk ratings, so they can change.

This fund is currently available across all AEGON Scottish Equitable life (except the protected investment option on Investment Control) and pension products (except stakeholder and Income for Life) and AEGON Scottish Equitable International products (except 5 for Life).

Scottish Equitable BlackRock UK Absolute Alpha fund and Scottish Equitable International BlackRock UK Absolute Alpha fund

The fund aims to achieve a positive return year on year by investing primarily in a portfolio of UK equities and UK equity-related securities, including derivatives**. From time to time the fund may also invest in cash and related money market instruments (short-term, relatively low-risk forms of debt like permitted deposits).

The fund has the freedom to use a number of investment strategies and as a result isn’t managed against any UK equity index.

Key details
Sector	Life	ABI Specialist life sector
	Pensions	ABI Specialist pension sector
	Offshore	Lipper UK Offshore Equity UK
Launch date		2 July 2008
Benchmark		n/a
Risk rating		Average*
Current additional disclosable yearly charges/expenses†		Life/Pensions: 2.2%
Offshore current disclosable yearly charge/expenses†		Series A 3.2%, Series B 2.6%
*The risk rating for each fund is based on its risk relative to other funds in our full fund range. It’s not its risk against industry benchmarks. We regularly review the risk ratings, so they can change.

**Derivatives are special financial instruments (agreements to buy or sell something) such as futures or options. The derivative techniques used in this fund have the overall intention of reducing the volatility of returns. However, investing in derivatives may involve a higher degree of risk so the outcome can’t be guaranteed.

†Due to the nature of this fund we review the expenses on a six-monthly basis. We’ll amend the additional disclosable yearly charge/expenses as necessary.

Scottish Equitable BlackRock European Dynamic fund and Scottish Equitable International BlackRock European Dynamic fund

The fund aims to achieve long-term capital growth by investing in the shares of companies listed in Europe (excluding the UK).

Key details
Sector	Pensions	ABI Europe ex UK pension sector
	Offshore	Lipper UK Offshore Equity European ex UK sector
Launch date		2 July 2008
Benchmark		FTSE World Europe ex UK Index
Risk rating		Above average*
Current additional disclosable yearly charges/expenses		Pensions: 1.0%
Offshore current disclosable yearly charge/expenses		Series A 2.0%, Series B 1.4%
*The risk rating for each fund is based on its risk relative to other funds in our full fund range. It’s not its risk against industry benchmarks. We regularly review the risk ratings, so they can change.

This fund is currently available across all AEGON Scottish Equitable pension products (except stakeholder) and AEGON Scottish Equitable International products (except 5 for Life). It isn’t currently available to our onshore bond investors.

Scottish Equitable BlackRock UK Dynamic fund and Scottish Equitable International BlackRock UK Dynamic fund

The fund aims to achieve long-term capital growth by investing in the shares of UK-listed companies.

Key details
Sector	Pensions	ABI UK All Companies pension sector
	Offshore	Lipper UK Offshore Equity UK sector
Launch date		2 July 2008
Benchmark		FTSE All Share Index
Risk rating		Above average*
Current additional disclosable yearly charges/expenses		Pensions: 0.95%
Offshore current disclosable yearly charge/expenses		Series A 1.95%, Series B 1.35%
*The risk rating for each fund is based on its risk relative to other funds in our full fund range. It’s not its risk against industry benchmarks. We regularly review the risk ratings, so they can change.

This fund is currently available across all AEGON Scottish Equitable pension products (except stakeholder) and AEGON Scottish Equitable International products (except for 5 for Life). It isn’t currently available to our onshore bond investors.

Scottish Equitable Schroder US Small & Mid Cap fund and Scottish Equitable International Schroder Small & Mid Cap fund

This fund aims to provide capital growth and income by investing mainly in shares of small and medium-sized US companies. It may also invest in collective investment schemes, warrants and money market instruments where appropriate.

Key details
Sector	Pensions	ABI North America pension sector
	Offshore	Lipper UK Offshore Equity North America
Launch date		23 July 2008
Benchmark		Russell 2500 Index
Risk rating		Above average*
Pensions current additional disclosable yearly charges/expenses		0.95%
Offshore current additional disclosable yearly charge/expenses		Series A 1.95%, Series B 1.35%
*The risk rating for each fund is based on its risk relative to other funds in our full fund range. It’s not its risk against industry benchmarks. We regularly review the risk ratings, so they can change.

This fund is currently available across all AEGON Scottish Equitable pension products (except stakeholder and Income for Life) and AEGON Scottish Equitable International products (except 5 for Life). It isn’t currently available to our onshore bond investors.

Scottish Equitable Schroder Global Emerging Markets fund and Scottish Equitable International Schroder Global Emerging Markets fund

This fund aims to achieve long-term capital growth by investing in the world’s emerging markets. It will invest mainly in equities, equity-related securities (including warrants and convertible securities) and fixed interest products that give exposure to emerging markets.

The fund may include shares in investment trusts and other closed-end funds that are themselves dedicated to investment in emerging markets. It may also invest in securities of companies listed on non-emerging market stock exchanges which conduct significant proportions of their business in emerging market countries. The fund may also invest in collective investment schemes, warrants and money market instruments.

Key details
Sector	Pensions	ABI Global Emerging Markets Equity pension sector
	Offshore	Lipper UK Offshore Equity Global Emerging Markets
Launch date		23 July 2008
Benchmark		MSCI Emerging Markets Index
Risk rating		Higher*
Current additional disclosable yearly charges/expenses		Pensions: 1.0%
Offshore current disclosable yearly charge/expenses		Series A 2.0%, Series B 1.4%
*The risk rating for each fund is based on its risk relative to other funds in our full fund range. It’s not its risk against industry benchmarks. We regularly review the risk ratings, so they can change.

Scottish Equitable Schroder Strategic Bond fund and Scottish Equitable International Schroder Strategic Bond fund

This fund aims to achieve a total return from a diversified portfolio of global debt securities. It will use a very varied range of fixed interest products, including UK and non-UK government bonds and investment grade and non-investment grade corporate bonds. The portfolio will consist mainly of sterling-denominated securities or overseas securities, hedged back to sterling.

Key details
Sector	Pensions	ABI Sterling Other Fixed Interest pension sector
	Offshore	Lipper UK Offshore Fixed Interest GBP
Launch date		23 July 2008
Benchmark		Merrill Lynch GBP Broad Market Index
Risk rating		Below average*
Current additional disclosable yearly charges/expenses		Pensions: 0.65%
Offshore current disclosable yearly charge/expenses		Series A 1.65%, Series B 1.05%
*The risk rating for each fund is based on its risk relative to other funds in our full fund range. It’s not its risk against industry benchmarks. We regularly review the risk ratings, so they can change.

Scottish Equitable Schroder Corporate Bond fund and Scottish Equitable International Schroder Corporate Bond fund

This fund aims to achieve a high level of income from a diversified portfolio of fixed interest securities. It invests mainly in corporate bonds and convertible bonds issued by UK companies, but will also invest in UK government bonds. It may also invest in euro-sterling issues, preference shares, non-sterling denominated fixed interest securities and other fixed interest issues.

Key details
Sector	Pensions	ABI Sterling Corporate Bond pension sector
	Offshore	Lipper UK Offshore Fixed Interest GBP Corporates
Launch date		23 July 2008
Benchmark		IMA UK Corporate Bond sector average
Risk rating		Below average*
Current additional disclosable yearly charges/expenses		Pensions: 0.6%
Offshore current disclosable yearly charge/expenses		Series A 1.6%, Series B 1.0%
*The risk rating for each fund is based on its risk relative to other funds in our full fund range. It’s not its risk against industry benchmarks. We regularly review the risk ratings, so they can change.

This fund is currently available across all AEGON Scottish Equitable pension products (except stakeholder and Income for Life) and AEGON Scottish Equitable International products (except for 5 for Life). It isn’t currently available to our onshore bond investors.

Please speak to your financial adviser to find out if any of these funds could work for you.