From 20 September 2021, the following changes are taking place to the Aegon JPMorgan Asia Equity (BLK) and Aegon JPMorgan All-Emerging Markets Equity (BLK) funds across all share classes available via the Aegon TargetPlan fund range:
- The fund names for both funds are being updated.
- The fund objectives for both funds are being updated.
- The fund benchmark for the Aegon JPMorgan Asia Equity (BLK) fund is being updated.
The changes in more detail
These funds invest in underlying ‘JP Morgan Life’ funds. On 13 October 2021, the underlying fund manager, JP Morgan Life Limited, intends to close each its life funds and subsequently wind up the company itself.
As a result of this, we’re switching the above underlying JP Morgan funds held by Aegon TargetPlan from ‘JP Morgan Life’ funds to the equivalent Aegon Insured JP Morgan mutual funds (for example unit trusts or mutual funds). To make our version of the funds consistent with the underlying funds, we’re updating the fund names and fund objectives for both funds, and the fund benchmark for the Aegon JPMorgan Asia Equity (BLK) fund.
What this means for investors
When this happens, the additional expenses (these are the day-to-day costs associated with the administration and management of the underlying assets) for investors will increase by 0.06%. However, the annual management charge (AMC) will decrease by 0.06%, which means that the overall charge that investors pay will remain the same at the time the changes occur. We may vary these charges, if we do so we will let investors know.
Investors can view the Annual Management Charge (AMC) for investment funds available to their Plan by logging onto TargetPlan and selecting ‘Fund Information’ from the Dashboard.
Investors will start to notice the changes on their statements, in our literature and on our website. The changes will be implemented gradually across our material, so investors may notice both the old and new information in use for a time.
More about the alternative funds
| Existing fund name | New fund name |
|---|---|
| Aegon JPMorgan All-Emerging Markets Equity (BLK) | Aegon JPMorgan Emerging Markets (BLK) |
| Existing fund objective | New fund objective |
| Aims to achieve long-term investment growth by investing in companies in the world’s less developed economies, including Latin America, Asia, Eastern Europe and South Africa. The investment team looks for high quality companies with sustainable earnings growth which are trading at attractive valuations, whilst looking to avoid overvalued stocks and markets. | The fund aims to provide capital growth over the long-term (5-10 years) by investing at least 80% of the fund’s assets in equity securities of emerging markets companies. |
| Existing fund name | New fund name |
|---|---|
| Aegon JPMorgan Asia Equity (BLK) | Aegon JPMorgan Asia Pacific Equity (BLK) |
| Existing fund objective | New fund objective |
| Aims to achieve strong long-term investment returns by investing in the shares of companies across the Asia-Pacific region excluding Japan. The investment team conducts extensive company visits across the region to assess the opportunities in the market and look to hold quality companies that are generating above average growth and whose share price is at an attractive valuation. | To provide long-term capital growth by investing primarily in companies in the Asia Pacific Basin (excluding Japan). Uses fundamental and systematic research inputs to identify stocks with specific style characteristics, such as value and momentum in price and earnings trends. Uses a high conviction approach to finding the best investment ideas. |
| Existing fund benchmark | New fund benchmark |
| FTSE All-World Asia Pacific ex Japan Index | MSCI All Country Asia Pacific ex Japan Index |
For more information, you can view the fund factsheets via the ‘Fund prices and performance’ page on our website and selecting ‘TargetPlan funds’.
What current investors need to do
Current investors don’t need to do anything. However, if investors feel that these funds aren’t suitable for them they can switch their investment and redirect any future investment, free of any switch charge, into an alternative fund or funds of their choice. If investors wish to do this they should complete an alteration of fund choice form and return it to us as soon as possible.
If you would like more information, please speak to a financial adviser. If you don’t have one you can find one in your area at www.moneyhelper.org.uk