From 31 December 2022 we’re changing the fund objectives of our Select Sector Portfolios across our pension and Aegon Retirement Choices (ARC) fund ranges.
Why we’re making these changes
The funds used within these portfolios are currently selected by Aegon with the help of independent researchers Morningstar. From January 2023, Morningstar will no longer be providing this service. As a result, the fund objectives will be updated to reflect the changes; the old and new fund objectives are in the table below.
Select Sector Portfolios
European Equity Select Portfolio
| Old fund objective | New fund objective |
|---|---|
This multi-manager portfolio aims to provide a good level of long-term capital growth by investing in a number of high-quality European equity (shares of companies) funds from different managers, recommended by independent researchers Morningstar. The portfolio targets returns above the IA Europe ex UK sector median over rolling three-year periods and Morningstar help us to select and manage the blend of funds on an ongoing basis to help it achieve this. This means the underlying funds and the weightings in those funds may change. The additional charges/expenses may change when funds are replaced, added or removed from the portfolio or weightings between funds are changed. |
This multi-manager portfolio aims to provide a good level of long-term capital growth by investing in a number of high-quality European equity (shares of companies) funds from different managers, by targeting a return above the IA Europe ex UK sector median over rolling three-year periods. The underlying funds and the weightings held in the portfolio may change and the additional charges/expenses may change when funds are replaced, added or removed from the portfolio or weightings between funds are changed. |
Source: Aegon UK
Global Emerging Markets Equity Select Portfolio
| Old fund objective | New fund objective |
|---|---|
This multi-manager portfolio aims to provide a good level of long-term capital growth by investing in a number of high-quality emerging market equity (shares in companies) funds from different managers, recommended by independent researchers Morningstar. The portfolio targets returns above the IA Global Emerging Markets sector median over rolling three-year periods and Morningstar help us to select and manage the blend of funds on an ongoing basis to help it achieve this. |
This multi-manager portfolio aims to provide a good level of long-term capital growth by investing in a number of high-quality emerging market equity (shares in companies) funds from different managers by targeting a return above the IA Global Emerging Markets sector median over rolling three-year periods. The underlying funds and the weightings held in the portfolio may change and the additional charges/expenses may change when funds are replaced, added or removed from the portfolio or weightings between funds are changed. |
Source: Aegon UK
Japanese Equity Select Portfolio
| Old fund objective | New fund objective |
|---|---|
This multi-manager portfolio aims to provide a good level of long-term capital growth by investing in a number of high-quality Japanese equity (shares in companies) funds from different managers, recommended by independent researchers Morningstar. The portfolio targets returns above the IA Japan sector median over rolling three-year periods and Morningstar help us to select and manage the blend of funds on an ongoing basis to help it achieve this. |
This multi-manager portfolio aims to provide a good level of long-term capital growth by investing in a number of high-quality Japanese equity (shares in companies) funds from different managers by targeting a return above the IA Japan sector median over rolling three-year periods. The underlying funds and the weightings held in the portfolio may change and the additional charges/expenses may change when funds are replaced, added or removed from the portfolio or weightings between funds are changed. |
Source: Aegon UK
North American Equity Select Portfolio
| Old fund objective | New fund objective |
|---|---|
This multi-manager portfolio aims to provide a good level of long-term capital growth by investing in a number of high-quality North American equity (shares in companies) funds from different managers, recommended by independent researchers Morningstar. The portfolio targets returns above the IA North America sector median over rolling three-year periods and Morningstar help us to select and manage the blend of funds on an ongoing basis to help it achieve this. |
This multi-manager portfolio aims to provide a good level of long-term capital growth by investing in a number of high-quality North American equity (shares in companies) funds from different managers by targeting a return above the IA North America sector median over rolling three-year periods. The underlying funds and the weightings held in the portfolio may change and the additional charges/expenses may change when funds are replaced, added or removed from the portfolio or weightings between funds are changed. |
Source: Aegon UK
International Bond Select Portfolio
| Old fund objective | New fund objective |
|---|---|
This multi-manager portfolio aims to provide a good level of long-term capital growth by investing in a number of high-quality global fixed interest (bonds) funds from different managers, recommended by independent researchers Morningstar. The portfolio targets returns above the JPMorgan GBI Global Traded Index over rolling three-year periods and Morningstar help us to select and manage the blend of funds on an ongoing basis to help it achieve this. |
This multi-manager portfolio aims to provide a good level of long-term capital growth by investing in a number of high-quality global fixed interest (bonds) funds from different managers by targeting a return above the JPMorgan GBI Global Traded Index over rolling three-year periods. The underlying funds and the weightings held in the portfolio may change and the additional charges/expenses may change when funds are replaced, added or removed from the portfolio or weightings between funds are changed. |
Source: Aegon UK
Asian Equity Select Portfolio
| Old fund objective | New fund objective |
|---|---|
This multi-manager portfolio aims to provide a good level of long-term capital growth by investing in a number of high-quality Asian equity (shares of companies) funds from different managers, recommended by independent researchers Morningstar. The portfolio targets returns above the IA Asia Pacific ex Japan sector median over rolling three-year periods and Morningstar help us to select and manage the blend of funds on an ongoing basis to help it achieve this. |
This multi-manager portfolio aims to provide a good level of long-term capital growth by investing in a number of high-quality Asian equity (shares of companies) funds from different managers by targeting a return above the IA Asia Pacific ex Japan sector median over rolling three-year periods. The underlying funds and the weightings held in the portfolio may change and the additional charges/expenses may change when funds are replaced, added or removed from the portfolio or weightings between funds are changed. |
Source: Aegon UK
UK Equity Select Portfolio
| Old fund objective | New fund objective |
|---|---|
A multi-manager portfolio that aims to provide a good level of long-term growth by investing in a number of high-quality UK equity funds from different managers, recommended by independent researchers Morningstar. The portfolio targets returns above the IA UK All Companies sector median over rolling three-year periods and Morningstar help us to select and manage the blend of funds on an ongoing basis to help it achieve this. This means the underlying funds and the weightings in those funds may change. The additional charges/expenses may change when funds are replaced, added or removed from the portfolio or weightings between funds are changed. |
A multi-manager portfolio that aims to provide a good level of long-term capital growth by investing in a number of high-quality UK equity funds from different managers by targeting a return above the IA UK All Companies sector median over rolling three-year periods. The underlying funds and the weightings held in the portfolio may change and the additional charges/expenses may change when funds are replaced, added or removed from the portfolio or weightings between funds are changed. |
Source: Aegon UK
UK Corporate Bond Select
| Old fund objective | New fund objective |
|---|---|
A multi-manager portfolio that aims to maximise total returns (the combination of income and capital growth) by investing in a number of high-quality investment grade bond funds from different managers, recommended by independent researchers Morningstar. The portfolio targets returns above the IA £ Corporate Bond sector median over rolling three-year periods and Morningstar help us to select and manage the blend of funds on an ongoing basis to help it achieve this. This means the underlying funds and the weightings in those funds may change. The additional charges/expenses may change when funds are replaced, added or removed from the portfolio or weightings between funds are changed. |
A multi-manager portfolio that aims to maximise total returns (the combination of income and capital growth) by investing in a number of high-quality investment grade bond funds from different managers by targeting a return above the IA £ Corporate Bond sector median over rolling three-year periods. The underlying funds and the weightings held in the portfolio may change and the additional charges/expenses may change when funds are replaced, added or removed from the portfolio or weightings between funds are changed. |
Source: Aegon UK
Property Select Portfolio
| Old fund objective | New fund objective |
|---|---|
This multi-manager portfolio aims to provide a good level of long-term capital growth by investing mainly in a number of high-quality commercial property funds from different managers, recommended by independent researchers Morningstar. The portfolio targets returns above the IA Property sector median over rolling three-year periods and Morningstar help us to select and manage the blend of funds on an ongoing basis to help it achieve this. |
This multi-manager portfolio aims to provide a good level of long-term capital growth by investing mainly in a number of high-quality commercial property funds from different managers by targeting a return above the IA Property sector median over rolling three-year periods. The underlying funds and the weightings held in the portfolio may change and the additional charges/expenses may change when funds are replaced, added or removed from the portfolio or weightings between funds are changed. |
Source: Aegon UK
There’s no guarantee the funds will meet their objectives. The value of an investment can fall as well as rise and is not guaranteed. Investors could get back less than they pay in.
What this means for current investors
Nothing else about the funds is changing. The changes will be implemented gradually across our material from December 2022, so you may notice both the old and new information in use for a time.
For more information on these funds, you can view individual fund factsheets via the ‘Fund prices and performance’ page on our website and selecting ‘Other fund ranges’ or ‘Aegon Retirement Choices (ARC)’.
What current investors need to do
You don’t need to do anything. If you’d like more information, please speak to your financial adviser. If you don’t have one, you can find one in your area at moneyhelper.org.uk/choosing-a-financial-adviser