Aegon’s Fund Governance Group (AFGG) is made up of experienced investment analysts and fund management experts. It's their job, as a group, to make sure that the funds we manage, or have responsibility for, meet our funds promise. These funds typically have a name starting with ‘Aegon’, ‘Scottish Equitable’ or ‘WS Aegon’.
What is the Aegon Fund Governance Group responsible for?
The AFGG has responsibility for three key areas:
Fund monitoring
The Fund Governance Group regularly checks that each of our funds:
- Has a robust investment process
- Aligns desired customer outcome with the fund design
- Long-term performance is broadly in line with objectives
But it does much more than monitoring. Our funds are generally designed to be held for five years or more, so our governance focuses on long-term expectations. If a fund persistently fails to meet the criteria above, and we believe these reasons are systemic, the AFGG will take steps to ensure changes are made or, in some cases, funds are removed.
Portfolio changes
Where monitoring suggests changes could be made to improve member outcomes, the AFGG can make changes to a portfolio, such as our default options. For example, this could mean updating the asset mix or making changes to the funds that make up that portfolio.
Fund range changes
The AFGG may also make changes to the funds or partner managers in focussed fund ranges, like our Workplace Target default fund range. These decisions consider the specific objectives of the range, so a fund could be removed from one range and retained in another.
The AFGG won’t necessarily remove a fund if it underperforms over a short period of time. It will look at both its structure and long-term expectations, to see if it can still help us meet our Funds Promise.
We review our Fund Governance Framework regularly, with the aim of making sure it best meets the needs of scheme members and individual investors.
There's no guarantee the funds will meet their objectives. The value of an investment can fall as well as rise and isn't guaranteed. The final value of a member's pension pot when they come to take benefits may be less than has been paid in.
If you’re in any doubt as to whether a particular fund is covered by our Funds Promise, get in touch with your Aegon contact.