Changes to the Aegon Mercer High Growth fund

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On 1 August 2016, Mercer made changes to the target asset allocation of the Aegon High Mercer Growth fund.

The amount invested in UK equities (company shares) reduced from 25% to 15% and the amount in overseas equities (hedged back to sterling) increased from 15.0% to 25.0%. The changes to the target asset allocation are shown in more detail in the table below:

Aegon Mercer High Growth fund* Previous % New %
Diversified growth strategies** 35.0 35.0
UK equities 25.0 15.0
Overseas equities unhedged 10.0 10.0
Overseas equities hedged 15.0 25.0
Emerging markets equities 15.0 15.0

Source: Mercer

*Asset allocations may fluctuate by up to 5% above or below the stated target, so figures may vary slightly from time to time. Asset allocations may also fluctuate due to Mercer implementing tactical changes based on medium term investment views.

**Diversified growth strategies include, but aren’t limited to, equities (including emerging market and smaller company equities), global fixed interest and property.

Why the changes are being made

The objective for the Aegon Mercer High Growth fund is to achieve high levels of capital growth over the long term. Mercer regularly reviews the Aegon Mercer High Growth fund and in order to help it achieve this objective the changes being made to the target asset allocation are to:

  • decrease the exposure to UK equities, which will reduce the reliance on the UK equity market to generate returns.
  • increase the allocation to overseas equities (hedged back to sterling), which will increase the diversification across different regions and make sure the currency exposure to sterling remains the same.

What do you need to do?

You don’t need to do anything, the changes were made on 1 August 2016.

There was a marginal increase of 0.01% to the Aegon Mercer High Growth fund costs as a result of this change.