Annual Review of Expenses 2018 – Pension & Life funds

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We regularly review the additional expenses for all of our funds as part of our commitment to provide a clear indication of costs to our customers.

What are additional expenses?

Additional expenses are the day-to-day costs associated with the administration and management of the underlying assets of the funds, for example, bank charges and safe custody fees. These are in addition to the annual management charge (AMC) and Aegon’s Product Charge. Together, they form part of the Total Fund Charge. The tables show only the AMC and additional expenses. We have no control over the majority of these additional expenses.

As a result of this review, the charges for a number of our funds are changing. You can see exactly which additional charges are changing in the table below. They are split out into separate tables for Pension funds and Life funds.

Why are they changing?

The review looks at all expenses/fees that were incurred by the underlying funds throughout the previous year and expenses that are expected going forward, and then compares this with the amount we are currently disclosing for the fund.

We do this to be clear with our customers about our additional charges. When we review our charges, if there is a significant difference between the amount we currently show and the amount we have moved to, we will change the amount we show (after rounding to the nearest 0.05%).

This approach allows us to disclose an understandable figure to our customers.

The changes in more detail:

Pension funds

Pension funds
Mnemonic (fund identifier) Fund name Old total (AMC plus additional expenses) (%) New total (AMC plus additional expenses) (%) Change (%)
FSQ Aegon Fundsmith Equity 1.10 1.05 -0.05
ARF Aegon Mercer Absolute Return Fixed Income 0.66 0.89 +0.23
MED Aegon Mercer Active Emerging Market Debt 0.91 0.90 -0.01
MAE Aegon Mercer Active Emerging Market Equity 1.00 0.95 -0.05
MAG Aegon Mercer Active Global Equity 0.72 0.70 -0.02
MLV Aegon Mercer Active Global Low Volatility Equity 0.79 0.77 -0.02
MGS Aegon Mercer Active Global Small Cap Equity 0.96 0.93 -0.03
MAU Aegon Mercer Active UK Equity 0.71 0.67 -0.04
MDG Aegon Mercer Diversified Growth 0.26 0.24 -0.02
MRP Aegon Mercer Growth 0.22 0.20 -0.02
MHG Aegon Mercer High Growth 0.21 0.19 -0.02
MMG Aegon Mercer Moderate Growth 0.22 0.20 -0.02
MPE Aegon Mercer Passive Emerging Markets Equity 0.22 0.23 +0.01
MOF Aegon Mercer Passive Over 15 Year UK Gilt 0.05 0.03 -0.02
MGF Aegon Mercer Passive Over 5 Year UK Index-Linked Gilt 0.05 0.03 -0.02
MPO Aegon Mercer Passive Overseas Equity 0.05 0.04 -0.01
MPC Aegon Mercer Passive UK Corporate Bond 0.04 0.03 -0.01
MPU Aegon Mercer Passive UK Equity 0.05 0.03 -0.02
MAA Aegon Mercer Target Annuity 0.22 0.20 -0.02
MCR Aegon Mercer Target Cash 0.22 0.20 -0.02
MTD Aegon Mercer Target Drawdown 0.22 0.20 -0.02
SPB Balanced Plus Select Portfolio 0.65 0.60 -0.05
CSR Cautious Select Portfolio 0.55 0.50 -0.05
ESP European Equity Select Portfolio 0.75 0.80 +0.05
GSP Global Emerging Markets Equity Select Portfolio 0.85 0.90 +0.05
NSP North American Equity Select Portfolio 0.70 0.75 +0.05
PSP Property Select Portfolio 0.85 1.00 +0.15
ACA Scottish Equitable Aberdeen Multi-Manager Cautious Managed Portfolio 1.55 1.65 +0.10
ACN Scottish Equitable Aberdeen Multi-Manager Constellation Portfolio 1.95 1.80 -0.15
IED Scottish Equitable Absolute Insight Emerging Markets Debt 1.20 1.00 -0.20
XIA Scottish Equitable Absolute Insight Equity Market Neutral 1.05 0.85 -0.20
ABR Scottish Equitable Allianz Emerging Markets Equity 1.10 1.15 +0.05
D1R Scottish Equitable Allium Multi-Asset DRP III 0.25 0.30 +0.05
D3R Scottish Equitable Allium Multi-Asset DRP VII 0.25 0.30 +0.05
D4R Scottish Equitable Allium Multi-Asset DRP VIII 0.30 0.45 +0.15
IGN Scottish Equitable Argonaut European Alpha 1.10 1.35 0.25
XAZ Scottish Equitable Artemis Global Growth 0.90 0.85 -0.05
BGD Scottish Equitable Baillie Gifford Diversified Growth 0.80 0.75 -0.05
CHE Scottish Equitable BlackRock Aquila Currency Hedged Global Equity 0.10 0.15 +0.05
BRG Scottish Equitable BlackRock Fixed Income Global Opportunities 0.60 0.70 +0.10
XME Scottish Equitable BlackRock US Dynamic 0.90 0.95 +0.05
CGO Scottish Equitable Caerus Global Opportunities 1.20 1.40 +0.20
CIN Scottish Equitable Caerus Monthly Income 1.45 2.20 +0.75
COP Scottish Equitable Cavendish Opportunities 0.85 0.80 -0.05
EHI Scottish Equitable EdenTree Higher Income 0.85 0.80 -0.05
EMD Scottish Equitable Ethical Managed 0.05 0.00 -0.05
EML Scottish Equitable Ethical Managed Lifestyle 0.05 0.00 -0.05
XFO Scottish Equitable Fidelity European Opportunities 1.00 0.95 -0.05
XFD Scottish Equitable Fidelity Extra Income 0.85 0.80 -0.05
FAS Scottish Equitable Fidelity Multi-Asset Strategic 0.95 0.90 -0.05
XFW Scottish Equitable Fidelity WealthBuilder 1.35 1.30 -0.05
GEM Scottish Equitable Henderson Emerging Markets Opportunities 1.00 1.05 +0.05
XVA Scottish Equitable Investec Asia ex Japan 1.00 0.95 -0.05
JES Scottish Equitable Jupiter European Special Situations 1.05 1.00 -0.05
XLE Scottish Equitable Lazard Emerging Markets 0.85 0.80 -0.05
XUA Scottish Equitable Lazard European Alpha 0.85 0.80 -0.05
XLA Scottish Equitable Lazard UK Alpha 0.70 0.65 -0.05
MGG Scottish Equitable M&G Global Basics 0.95 0.90 -0.05
MGM Scottish Equitable M&G Global Emerging Markets 1.00 1.05 +0.05
MGL Scottish Equitable M&G Global Leaders 0.90 0.95 +0.05
MPR Scottish Equitable M&G Property Portfolio 1.10 1.15 +0.05
XSG Scottish Equitable Man GLG Balanced Managed 0.25 0.30 +0.05
GJA Scottish Equitable Man GLG Japan Core Alpha 0.75 0.90 +0.15
GUS Scottish Equitable Man GLG UK Select 0.75 0.90 +0.15
NBL Scottish Equitable Neptune Balanced 0.80 0.85 +0.05
NEO Scottish Equitable Neptune European Opportunities 0.90 0.95 +0.05
NIB Scottish Equitable Newton International Bond 0.55 0.60 +0.05
OGB Scottish Equitable Old Mutual Global Strategic Bond 0.60 0.65 +0.05
XGP Scottish Equitable Schroder Global Property Securities 0.90 0.95 +0.05
CSB Scottish Equitable Schroder Strategic Credit 0.65 0.70 +0.05
XSP Scottish Equitable Schroder UK Corporate Bond 0.60 0.65 +0.05
XTD Scottish Equitable Threadneedle American 0.75 0.70 -0.05
TNE Scottish Equitable Threadneedle European 0.70 0.65 -0.05
UMA Scottish Equitable UBS Multi-Asset Income 0.85 0.90 +0.05
UKT Scottish Equitable UK Equity Tactical 0.05 0.10 +0.05
KSP UK Equity Select Portfolio 0.65 0.70 +0.05

Life funds

Life funds
Mnemonic (fund identifier) Fund name Old total (AMC plus additional expenses) (%) New total (AMC plus additional expenses) (%) Change (%)
XBS Scottish Equitable Baillie Gifford 60/40 Worldwide Equity 0.35 0.40 +0.05
XBG Scottish Equitable Baillie Gifford Balanced Managed 0.25 0.30 +0.05
XMR Scottish Equitable BlackRock Balanced Managed 0.25 0.30 +0.05
XMU Scottish Equitable BlackRock UK 0.90 0.95 +0.05
XBA Scottish Equitable BlackRock UK Absolute Alpha 0.90 0.95 +0.05
XME Scottish Equitable BlackRock US Dynamic 0.90 0.95 +0.05
XFW Scottish Equitable Fidelity WealthBuilder 1.35 1.30 -0.05
GBL Scottish Equitable Global Fund 0.10 0.00 -0.10
JPN Scottish Equitable Japan Fund 0.25 0.15 -0.10
XLE Scottish Equitable Lazard Emerging Markets 0.85 0.80 -0.05
XLA Scottish Equitable Lazard UK Alpha 0.70 0.65 -0.05
XSG Scottish Equitable Man GLG Balanced Managed 0.25 0.30 +0.05
MIX Scottish Equitable Mixed 0.05 0.00 -0.05
XGP Scottish Equitable Schroder Global Property Securities 0.90 0.95 +0.05
XST Scottish Equitable Schroder Tokyo 1.00 0.95 -0.05
XUB Scottish Equitable UBS Balanced Managed 0.25 0.30 +0.05
XUK Scottish Equitable UK Smaller Companies 0.15 0.05 -0.10

Source: Aegon UK