Aegon's Fund Governance Group aims to make sure we keep our funds promise commitments to customers.
It looks at Aegon funds available to UK investors. These funds typically have names starting with 'Aegon', 'WS Aegon', or 'Scottish Equitable'. The Fund Governance Group is responsible for three areas:
The Fund Governance Group regularly checks that each Aegon fund's:
- Investment process remains robust
- Fund design matches desired customer outcome
- Long-term performance is broadly in line with objectives
Our funds are generally designed to be held for five years or more, so our governance focuses on long-term expectations. However, if a fund persistently fails to meet the criteria above, and we believe these reasons are systematic, the Fund Governance Group will take steps to ensure changes are made or, in some cases, funds are removed.
For the multi-asset portfolios we've created - such as our Risk-Managed Portfolios or our default fund options - the Fund Governance Group monitors both the overall portfolio and its constituent funds. They will recommend changes where monitoring suggests they would help us to meet our Fund Promise commitments. Among other things, this could mean updating the asset mix of making changes to the funds that make up that portfolio.
The Fund Governance Group may also make changes to the funds or partner managers in focussed fund ranges, like the One Retirement fund range. These decisions take into account the specific objectives of the range, so a fund could be removed from one range and retained in another. The Fund Governance Group won't necessarily remove a fund if it underperforms over a short time period. It will look at both its structure and long-term expectations, to see if it can still help us meet our Funds Promise.
We review our fund governance framework regularly with the aim of making sure it best meets the needs of investors.
There's no guarantee the funds will meet their objectives. The value of an investment can fall as well as rise and isn't guaranteed. Your clients could end up with less than they invested.