From 17 September 2026, we’re updating the fund objective, benchmark and fund charge for the Aegon Mercer Balanced Investment Approach fund and the Aegon Mercer Balanced Investment Approach Retirement fund, available across our insured Pension and Aegon Retirement Choices (ARC) fund ranges.
The changes are detailed below and we’re writing to all those affected about them.
The changes in more detail
Working with Mercer, we've made changes to how the funds invest using underlying fund(s) managed by Mercer. We're doing this to bring them in line with other portfolios they manage. As a result, the fund objectives will be updated. The fund objective explains how the fund invests and what it’s trying to achieve for investors
We’re also updating the fund benchmarks. Benchmarks are used to measure a fund’s performance against similar types of investments, similar markets or regions. The fund charges are also increasing.
There are more details in the tables below, with the changes to the fund objective highlighted:
Pension
Aegon Mercer Balanced Investment Approach
Old fund objective |
New fund objective |
|---|---|
The fund aims to adapt to the changing needs of retirement savers. The first phase, the growth phase, lasts until 15 years before your target retirement date and will mainly invest in global equities (company shares) with the aim of growing assets significantly in excess of inflation. The second phase, the consolidation phase, starts 15 years before your target retirement date and seeks to achieve growth in excess of inflation but with less risk than during the growth phase. During this phase the weighting to global equities will gradually decline whilst the weighting to government and corporate bonds increases. In the third phase, the retirement phase, the fund seeks limited growth in a lower risk portfolio. In each phase, the fund aims to track the markets it invests in, so performance should be similar to those markets. Mercer Ltd designed the strategy and will change it with the aim of ensuring it continues to suit investors’ needs. For this it receives a fee, paid from the fund's annual management charge.
|
The fund aims to adapt to the changing needs of retirement savers. The first phase, the growth phase, lasts until 15 years before your target retirement date and will mainly invest in global equities (company shares) with the aim of growing assets significantly in excess of inflation. The second phase, the consolidation phase, starts 15 years before your target retirement date and seeks to achieve growth in excess of inflation but with less risk than during the growth phase. During this phase the weighting to global equities (company shares) will gradually decline whilst the weighting to other diversifying asset classes, including (but not limited to) government and corporate bonds (loans to governments and companies) and alternatives (e.g. absolute return strategies and commodities) increases. In the third phase, the retirement phase, the fund seeks to balance continued growth with capital preservation. Mercer Ltd has selected the underlying funds, which are managed by another Mercer company, for which it receives a fee. This is paid from the funds’ annual charges and is not an additional cost.
|
Existing fund benchmark |
New fund benchmark |
29.5% FTSE North America / 26.7% FTSE All Share / 14.9% FTSE World Europe ex UK / 13.9% FTSE World ex UK / 10% Markit iBoxx £ Non Gilts / 3% FTSE Actuaries UK Index-Linked Gilts Over 5 Years / 2% SONIA Overnight
|
SONIA + 4.25%
|
Old Total Charge1 |
New Total Charge1 |
1.02% |
1.05% |
Aegon Mercer Balanced Investment Approach Retirement
Old fund objective |
New fund objective |
|---|---|
This fund is designed for Mercer Workplace scheme members invested in the Aegon Mercer Balanced Investment Approach fund who have reached their target retirement year, but haven’t yet taken their pension benefits. In the member’s retirement year, they will automatically be transferred into this fund. While scheme members decide how they want to take their retirement income, the fund aims to keep risk low while providing some continued growth. It does so by investing in a mix of investments (company shares, bonds and cash) and countries so they’re not reliant on the success of just one investment type. It’s designed as a short-to-medium term investment.
|
This fund is designed for Mercer Workplace scheme members invested in the Aegon Mercer Balanced Investment Approach fund who have reached their target retirement year but haven’t yet taken their pension benefits. In the member’s retirement year, they will automatically be transferred into this fund. While scheme members decide how they want to take their retirement income, the fund aims to keep risk relatively low while providing some continued growth. It does so by investing in a mix of investments (company shares, bonds and cash) and countries so they’re not reliant on the success of just one investment type. Mercer Ltd has selected the underlying funds, which are managed by another Mercer company, for which it receives a fee. This is paid from the funds’ annual charges and is not an additional cost.
|
Existing fund benchmark |
New fund benchmark |
30% Markit iBoxx £ Non Gilts / 20% FTSE Actuaries UK IndexLinked Gilts Over 5 Years / 20% FTSE Actuaries UK Conventional Gilts All Stocks / 8% FTSE North America / 7.3% FTSE All Share / 7% SONIA Overnight / 4% FTSE World Europe ex UK / 3.7% FTSE World ex UK
|
SONIA + 2.25%
|
Old Total Charge1 |
New Total Charge1 |
1.01% |
1.05% |
Aegon Retirement Choices (ARC)
Aegon Mercer Balanced Investment Approach (ARC)
Existing fund objective |
New fund objective |
|---|---|
The fund aims to adapt to the changing needs of retirement savers. The first phase, the growth phase, lasts until 15 years before your target retirement date and will mainly invest in global equities (company shares) with the aim of growing assets significantly in excess of inflation. The second phase, the consolidation phase, starts 15 years before your target retirement date and seeks to achieve growth in excess of inflation but with less risk than during the growth phase. During this phase the weighting to global equities will gradually decline whilst the weighting to government and corporate bonds increases. In the third phase, the retirement phase, the fund seeks limited growth in a lower risk portfolio. In each phase, the fund aims to track the markets it invests in, so performance should be similar to those markets. Mercer Ltd designed the strategy and will change it with the aim of ensuring it continues to suit investors’ needs. For this it receives a fee, paid from the fund's annual management charge.
|
The fund aims to adapt to the changing needs of retirement savers. The first phase, the growth phase, lasts until 15 years before your target retirement date and will mainly invest in global equities (company shares) with the aim of growing assets significantly in excess of inflation. The second phase, the consolidation phase, starts 15 years before your target retirement date and seeks to achieve growth in excess of inflation but with less risk than during the growth phase. During this phase the weighting to global equities (company shares) will gradually decline whilst the weighting to other diversifying asset classes, including (but not limited to) government and corporate bonds (loans to governments and companies) and alternatives (e.g. absolute return strategies and commodities) increases. In the third phase, the retirement phase, the fund seeks to balance continued growth with capital preservation. Mercer Ltd has selected the underlying funds, which are managed by another Mercer company, for which it receives a fee. This is paid from the funds’ annual charges and is not an additional cost.
|
Existing fund benchmark |
New fund benchmark |
29.5% FTSE North America / 26.7% FTSE All Share / 14.9% FTSE World Europe ex UK / 13.9% FTSE World ex UK / 10% Markit iBoxx £ Non Gilts / 3% FTSE Actuaries UK Index-Linked Gilts Over 5 Years / 2% SONIA Overnight |
SONIA + 4.25%
|
Old Fund Charge2 |
New Fund Charge2 |
0.15% |
0.18% |
Aegon Mercer Balanced Investment Approach Retirement (ARC)
Existing fund objective |
New fund objective |
|---|---|
This fund is designed for Mercer Workplace scheme members invested in the Aegon Mercer Balanced Investment Approach fund who have reached their target retirement year, but haven’t yet taken their pension benefits. In the member’s retirement year, they will automatically be transferred into this fund. While scheme members decide how they want to take their retirement income, the fund aims to keep risk low while providing some continued growth. It does so by investing in a mix of investments (company shares, bonds and cash) and countries so they’re not reliant on the success of just one investment type. It’s designed as a short-to-medium term investment
|
This fund is designed for Mercer Workplace scheme members invested in the Aegon Mercer Balanced Investment Approach fund who have reached their target retirement year, but haven’t yet taken their pension benefits. In the member’s retirement year, they will automatically be transferred into this fund. While scheme members decide how they want to take their retirement income, the fund aims to keep risk relatively low while providing some continued growth. It does so by investing in a mix of investments (company shares, bonds and cash) and countries so they’re not reliant on the success of just one investment type. Mercer Ltd has selected the underlying funds, which are managed by another Mercer company, for which it receives a fee. This is paid from the funds’ annual charges and is not an additional cost. |
Existing fund benchmark |
New fund benchmark |
30% Markit iBoxx £ Non Gilts / 20% FTSE Actuaries UK IndexLinked Gilts Over 5 Years / 20% FTSE Actuaries UK Conventional Gilts All Stocks / 8% FTSE North America / 7.3% FTSE All Share / 7% SONIA Overnight / 4% FTSE World Europe ex UK / 3.7% FTSE World ex UK |
SONIA + 2.25%
|
Old Fund Charge2 |
New Fund Charge2 |
0.15% |
0.18% |
Source: Aegon UK
1This includes a standard 1% product charge, a fixed management fee and expenses that vary with the day-to-day costs of running the fund. You may pay a different product charge in which case the Total Charge will be different.
2This is on top of any product and adviser charge and includes a fixed management fee, plus expenses that vary with the day-to-day costs of running the fund.
There’s no guarantee the fund will meet its objectives. The value of an investment can fall as well as rise and is not guaranteed. You could get back less than you pay in.
What current investors need to do
Existing investors don’t need to do anything.
More information about these funds can be found on the ‘Fund prices and performance’ page on our website and selecting ‘Other fund ranges’ or ‘Aegon Retirement Choices (ARC)’ and searching for the fund name.
If you’re invested in any of the affected funds, you should speak to your financial adviser in the first instance if you need advice about your investments. There’s likely to be a charge for this. If you don’t have a financial adviser, you can find one in your area by visiting MoneyHelper or find out more about advice services supported by Aegon by visiting Origen Financial Services.
Origen Financial Services Ltd is wholly owned by Aegon UK plc but operates independently to us.