From 17 September 2026, we’re updating the fund objectives, benchmarks and fund charges for the Aegon Mercer Governed Portfolio (ARC) fund ranges I to IV.
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 decreasing.
There are more details in the tables below, with the changes to the fund objective highlighted:
Aegon Mercer Governed Portfolio I (ARC)
Existing fund objective |
New fund objective |
|---|---|
This fund aims for a balance between growth and capital preservation over the medium term to long term to suit someone with a relatively low tolerance for risk. It will normally hold no more than 40% of the portfolio in equities and a minimum of 60% in bonds, a mix of government and corporate bonds (which may include emerging market debt) and cash. It will gain access to this mix through various index tracker funds, except for the cash investments. Mercer Ltd provides the asset allocation model and oversight for this fund, for which it receives a fee, paid from the fund’s annual management charge. |
This fund aims for a balance between growth and capital preservation over the medium to long term to suit someone with a relatively low tolerance for risk. It does this by investing in a mix of equities (company shares), government and corporate bonds (loans to governments and companies), and cash. It will gain access to this mix through underlying funds managed by Mercer, except for the cash investments. 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 Charge¹ |
New Fund Charge¹ |
0.25% |
0.18% |
Aegon Mercer Governed Portfolio II (ARC)
Existing fund objective |
New fund objective |
|---|---|
This fund aims for a balance between growth and capital preservation over the medium term to long term to suit someone with a below average tolerance for risk. It will normally hold no more than 60% of the portfolio in equities and a minimum of 40% in bonds, a mix of government and corporate bonds (which may include emerging market debt) and cash. It will gain access to this mix through various index tracker funds, except for the cash investments. Mercer Ltd provides the asset allocation model and oversight for this fund, for which it receives a fee, paid from the fund’s annual management charge.
|
This fund aims for a balance between growth and capital preservation over the medium to long term to suit someone with a medium tolerance for risk. It does this by investing in a mix of equities (company shares), government and corporate bonds (loans to governments and companies), and cash. It will gain access to this mix through underlying funds managed by Mercer, except for the cash investments. 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 |
25% Markit iBoxx £ Non Gilts / 15.3% FTSE North America / 13.8% FTSE All Share / 13% FTSE Actuaries UK Index-Linked Gilts Over 5 Years / 13% FTSE Actuaries UK Conventional Gilts All Stocks / 7.7% FTSE World Europe ex UK / 7.2% FTSE World ex UK / 5% SONIA Overnight |
SONIA + 3.5%
|
Old Fund Charge¹ |
New Fund Charge¹ |
0.25% |
0.18% |
Aegon Mercer Governed Portfolio III (ARC)
Existing fund objective |
New fund objective |
|---|---|
This fund aims for a balance between growth and capital preservation over the medium term to long term to suit someone with a below average tolerance for risk. It will normally hold no more than 60% of the portfolio in equities and a minimum of 40% in bonds, a mix of government and corporate bonds (which may include emerging market debt) and cash. It will gain access to this mix through various index tracker funds, except for the cash investments. Mercer Ltd provides the asset allocation model and oversight for this fund, for which it receives a fee, paid from the fund’s annual management charge.
|
This fund aims for a balance between growth and capital preservation over the medium to long term to suit someone with a medium tolerance for risk. It does this by investing in a mix of equities (company shares), government and corporate bonds (loans to governments and companies), and cash. It will gain access to this mix through underlying funds managed by Mercer, except for the cash investments. 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 |
25% Markit iBoxx £ Non Gilts / 15.3% FTSE North America / 13.8% FTSE All Share / 13% FTSE Actuaries UK Index-Linked Gilts Over 5 Years / 13% FTSE Actuaries UK Conventional Gilts All Stocks / 7.7% FTSE World Europe ex UK / 7.2% FTSE World ex UK / 5% SONIA Overnight |
SONIA + 3.5%
|
Old Fund Charge¹ |
New Fund Charge¹ |
0.25% |
0.18%
|
Aegon Mercer Governed Portfolio IV (ARC)
Existing fund objective |
New fund objective |
|---|---|
This fund aims for a balance between growth and capital preservation over the medium term to long term to suit someone with an above average tolerance for risk. It will normally hold no less than 60% of the portfolio in equities and a maximum of 40% in bonds, a mix of government and corporate bonds (which may include emerging market debt) and cash. It will gain access to this mix through various index tracker funds, except for the cash investments. Mercer Ltd provides the asset allocation model and oversight for this fund, for which it receives a fee, paid from the fund’s annual management charge.
|
This fund aims for a balance between growth and capital preservation over the medium to long term to suit someone with a high tolerance for risk. It does this by investing in a mix of equities (company shares), government and corporate bonds (loans to governments and companies) and cash. It will gain access to this mix through various underlying funds managed by Mercer, except for the cash investments. 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 Charge¹ |
New Fund Charge¹ |
0.25% |
0.18% |
Source: Aegon UK
¹This 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 ‘Aegon Retirement Choices (ARC)’
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.