and how they help us keep our Funds Promise

Aegon specialists + Independent specialists = Fund Governance Group

We review this arrangement regularly to make sure it best meets the needs of investors.

The Fund Governance Group makes sure we keep our Funds Promise. It is responsible for three areas:

  • Fund monitoring
  • Portfolio changes
  • Fund range changes

Fund monitoring

The Fund Governance Group regularly checks that each insured fund’s:

  1. Investment process remains robust
  2. Operational capability supports effective fund administration
  3. Long-term performance is broadly in line with objectives

More than monitoring

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

Portfolio changes

Where monitoring suggests changes to funds we’ve created - such as our default options or our Risk-Target portfolios - would help us meet our Funds Promise, the Fund Governance Group can change a portfolio. Among other things, this could mean updating the asset mix or making changes to the funds that make up that portfolio.

Fund range changes

The Fund Governance Group may also make changes to the funds or partner managers in focussed 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 won’t necessarily remove a fund if it underperforms over a short time period. It will look at both its structure and long-term expectations, to see if it can still help us meet our Funds Promise.

Our funds promise applies to insured funds available to UK investors. These funds typically have a name starting with ‘Aegon’ or ‘Scottish Equitable’. The value of investments is not guaranteed and can fall as well as rise. Investors may get back less than the amount invested.