We’re updating the fund objective for the Aegon Baillie Gifford UK Equity Alpha fund, available as part of our insured Pension and Aegon Retirement Choices (ARC) fund ranges.
The underlying fund manager, Baillie Gifford, has notified us that it’s increased the number of investible stocks the underlying fund can invest in from between 30 to 40 to between 30 to 50. However, the fund continues to have what is considered a concentrated portfolio (this means the fund can only invest in a relatively small number of stocks).
At the same time, Baillie Gifford also advised that in preparation for the retirement of Gerard Callahan on 30 April 2022, they’ve appointed Milena Mileva as co-manager of the underlying fund. Milena will take on the role of lead manager from May 2022.
Nothing else about the fund will change because of this. For example, the charges and Aegon risk ratings will remain the same.
The change in more detail
The underlying fund manager has updated the investment objective for this fund. To ensure consistency, we’re updating our version of the fund. Details can be found in the table below:
|Existing fund objective
||New fund objective
|The fund aims to outperform the FTSE All Share Index by 2% per year (after charges) over rolling 5-year periods. It does so by investing at least 80% in the shares of UK companies of any size and in any sector. The fund will typically hold between 30 to 40 stocks. The Scottish Equitable fund has higher charges than the underlying Baillie Gifford fund and will therefore be less likely to meet this target.
||The fund aims to outperform the FTSE All Share Index by 2% per year (after charges) over rolling 5-year periods. It does so by investing at least 80% in the shares of UK companies of any size and in any sector. The fund will typically hold between 30 to 50 stocks. The Aegon fund has higher charges than the underlying Baillie Gifford fund and will therefore be less likely to meet this target.
Source: Aegon UK
There’s no guarantee the fund will meet its objectives. The value of an investment can fall as well as rise and isn’t guaranteed. Investors could get back less than has been paid in.
Investors will start to notice the changes on their statements, in our literature and on our website from 31 March 2022 onwards. The changes will be implemented gradually, so investors may notice both the old and new objective in use for a time.
For more information on these funds you can view the fund factsheet via the ‘Fund prices and performance page’ and viewing either ‘Aegon Retirement Choices (ARC)’ or ‘Other fund ranges’.
What current investors need to do
Existing investors don’t need to do anything. Please speak to a financial adviser if you’re unsure about what these changes mean for you. If you don’t have a financial adviser, you can find one in your area at moneyhelper.org.uk