Aegon's Fund Governance Group aims to make sure we keep our funds promise. It is responsible for three areas:
The Fund Governance Group regularly checks that each Aegon fund's:
- Investment process remains robust
- Fund design matches desired customer outcome
- Long-term performance is broadly in line with objectives
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 systematic, the Fund Governance Group will recommend changes to a portfolio or fund range.
Where monitoring suggests changes to funds we've created - such as our default options or our Core 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.
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.
We review our fund governance framework regularly with the aim of making sure it best meets the needs of investors.
Our fund promise apples to Aegon funds available to UK investors. These funds typically have a name starting with 'Aegon', 'WS Aegon' or 'Scottish Equitable'. The value of investments can fall as well as rise and investors may get back less than they invested.