Fund governance

Fund governance is the most important function we perform on behalf of our investors. Our Fund Governance Group is independent of our fund management functions and stands in the customer's place with the aim of ensuring the funds we offer are appropriate for your clients and perform as expected. 

Our Funds Promise

Aegon's Fund Governance Group has ultimate responsibility for ensuring that we meet our Funds Promise commitments to your clients:

  • We aim to offer high quality funds which meet their objectives.
  • We monitor funds to check if they perform as expected.
  • We take action if funds don't meet expectations.
  • We give you the facts you need to make decisions.

Our Funds Promise applies to Aegon funds available to UK investors. These funds typically have a name starting with  'Aegon', 'LF Aegon' or 'Scottish Equitable'.

How our governance process works

The Fund Governance Group is responsible for governing Aegon funds. To do this it focuses on four key areas:

The Fund Governance Group ratifies the mandate of any new fund to make sure it can be managed in line with expectations and is likely to deliver good customer outcomes. For non-insured funds, like our new Risk-Managed Portfolios, it ensures compliance with MiFID II and PROD principles regarding target market, suitability and transparency of reporting.

The Fund Governance Group uses a framework to deliver on our promises to customers and provide assurance to our stakeholders. To achieve this, the team operates a number of processes and controls which identify where funds are not being invested as customers have been led to expect and then highlights funds that are not delivering good customer outcomes. The Fund Governance Group uses a risk-based approach taking account of Aegon's strategic objectives as well as the requirements of our key stakeholders:

  • customers;
  • regulators, and
  • shareholders.

Aegon funds are generally designed to be held for five years or more, so our fund governance focuses on long-term expectations. However, if a fund or fund range persistently fails to meet the agreed criteria, and we believe these reasons are systemic, the Fund Governance Group will recommend changes.

Changes to funds or managers can be made for a variety of reasons, not just performance. However, our guiding principle is to ensure that such changes help us meet our Funds Promise commitment to investors.

Where monitoring suggests changes to solutions we've created - such as our default options or our multi-asset solutions - would improve customer outcomes, the Fund Governance Group may recommend changes. Amongst other things, this could mean updating the asset mix or making changes to the funds that make up that portfolio.

The Fund Governance Group may also make changes to fund ranges, like the One Retirement fund range. These decisions take into account the specific objectives of the range, so a fund could be removed from one range and retained in another.

The Fund Governance Group will also assess the materiality of any changes, and whether communications are required to advisers and their clients.

This may mean communicating directly with all those affected, or for smaller changes we may post updates on our website instead.

Explaining fund governance to clients

Show clients how our rigorous fund governance process seeks to ensure we keep our Funds Promise.

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Responsible investing

Find out how we can help your clients invest for a sustainable future.

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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. Your client could get back less than they invest.

Read our latest performance reports