How our Risk-Managed Portfolios work
We monitor risks at every stage of the investment process. For example, we assess how market factors, such as interest rate changes, government spending and trade disputes, might impact the portfolios over the long term. We then make adjustments to the asset allocation – the mix of equities (shares), bonds and cash – with the aim of making sure each portfolio keeps to its risk level.
Active asset allocation
Asset allocation is key, not just to managing risk, but for the growth potential of each portfolio. Our Portfolio Management team works with investment specialists Aon* to create and maintain a mix of investments that it believes will deliver the best returns possible for each risk level.
Passively managed components
The portfolios use passively managed investments, also known as tracker funds. Passive investments aim to produce returns broadly in line with the markets they track (before charges) by investing in the same investments in the same proportions, as their benchmark. This approach means less manual intervention, keeping charges low.
Because the portfolios are backed by our Funds Promise, we check them regularly to see if they're meeting their objectives. That means:
- We check to see whether the funds the portfolios invest in, as well as the overall portfolios, are performing as expected.
- We will change the mix, remove or add funds if they're not.
*Aon replaced Morningstar as our asset allocation consultants on 1 Jan 2023.
*Transaction charges and a platform fee will also apply.
Waystone Management (UK) Limited (WS) is the authorised corporate director of the WS Aegon Risk-Managed Funds. This means they're responsible for the operation of the funds in accordance with the regulations.