These Risk-Managed Portfolios make it easy for scheme members to choose a growth solution that matches their attitude to risk and retirement goals.
They are especially useful for people who lack the confidence or expert help to build their own retirement portfolio. And as they approach retirement, they have the option to reduce risk by choosing a lower-risk portfolio.
We recommend members seek advice before making changes, particularly as they get closer to retirement.
What do the Risk-Managed Portfolios offer members?
You can use this video to help explain how they work to your scheme members.
Risk-Managed range
Scheme members can choose from six Risk-Managed Portfolios, with each designed to match a different risk preference. Click on the portfolios below to find out more about each fund.
1
Generally, you would expect higher-risk funds to return more over the longer term than lower-risk funds, but there's no guarantee of this. And with high-risk funds there's a greater chance they could lose money, particularly over shorter time periods.
Benefits of our Risk-Managed Portfolios:
- Let members choose the balance of risk and long-term growth potential that’s right for them.
- Available within a pension, ISA or GIA.
- Managed on their behalf – we monitor the portfolios and change them if needed.
- Provide a complete, risk-managed portfolio for a fixed ongoing charges figure of 0.25% per year (transaction charges and a platform fee will also apply).
- Are backed by our Funds Promise, which means their performance is monitored by our Fund Governance Group.
Literature
Your members can also view fund factsheets and Key investor information documents for individual funds by clicking on the relevant fund under the 'Risk-Managed range' tab.
There's no guarantee the funds will meet their objectives.
Their value can go down as well as up and isn't guaranteed.
Scheme members could get back less than the amount invested. Before making any decision to invest in a particular fund, they should read the fund factsheets and Key investor information documents for full details on the fund, including risks and charges, which they can find under the 'Risk Managed range' tab above.
How our Risk-Managed Portfolios work
Risk management
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 Aon, investment specialists with extensive research capabilities, 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.
Monitoring
Because the portfolios are backed by our Funds Promise, we check them regularly to see if they're meeting their objectives. This 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 performing.
Our Funds Promise
We regularly check these funds with the aim of making sure they're meeting their objectives. Find out more.
1 The pie charts are for illustrative purposes only, please see the relevant fund factsheet for up-to-date asset allocation information.
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.