This may be a short thread, if there is nothing I can do about this.
I transferred an old workplace pension from Aegon to a SIPP with Vanguard in March this year. Unfortunately, it coincided with the initial wave of panic during the transfer process and Aegon stopped trading on its ARN Scot Eq Property ARD fund. A partial transfer of everything else completed, save for about £2k in the commercial prop fund.
Luckily, I missed almost all the decline in the market and the SIPP is now up about 27% in value. Obviously, the extra £2k from Aegon would have added to this.
However, Aego are still charging their platform and fund fees for my money stuck in limbo, so it is being chipped away at rather than growing. I understand the ceasing of trading is to protect value etc, but I've complained that the fees are unfair considering I was in the middle of a transfer. The fund may be closed for more than a year.
Aegon rejected my complaint (see a portion of their response below if interested). Should I take it to the financial omsbudman or is this just one I have to take on the chin as part of the rough and tumble of investing?
Thanks in advance
AEGON RESPONSE:
I understand you’re concerned we’re still applying fees for a fund that isn’t currently trading. As you’ve recently transferred your remaining funds to another provider, you feel it’s unfair for us to continue charging fees on this fund.
I’ve looked into this for you and I can’t agree we’ve done anything wrong. I appreciate this isn’t the outcome you were looking for, but I hope my email can explain how I’ve reached my decision.
When we received your transfer request in March, we arranged to sell down all of the funds. However, the fund manager took the decision to suspend all sales and purchases from the ARN Scot Eq Property ARD fund with effect from 12pm on 18 March. This meant they were no longer offering any dealing points for the fund. While I appreciate the inconvenience this may cause you, we’re unable to force a fund manager to place a sale.
With your confirmation, we completed the partial transfer for the open funds, which was finalised on 8 April. As we’re still administering your plan with the remaining fund, although temporarily suspended, fees still apply in the meantime.
I appreciate you feel it’s unfair, however, suspending trading is an action taken to protect investors in times of market uncertainty. I’ve attached a copy of our corporate action notification letter, which details why this fund suspension has happened and next steps.
