Changes to the Aegon Ninety One Cautious Managed fund

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From 19 November 2021, the Aegon Ninety One Cautious Managed fund will be known as the Aegon Ninety One Global Income Opportunities fund.

The underlying fund manager, Ninety One Fund Managers UK Limited, have also notified us that they’ve changed the way they measure the performance of the underlying fund, which they believe better clarifies the fund’s key characteristics. As a result, we’re amending our fund’s objective to ensure it remains consistent with the underlying fund.

Nothing else about the fund will change because of these updates. For example, the fund manager, charges and Aegon risk ratings will all remain the same.

The changes in more detail

Name changes

As the underlying fund’s objective has changed to better reflect how the fund is managed, the fund name is also being updated. To ensure consistency for our customers, we’re changing our fund name. The fund’s short names, which appear on plan statements, will also change to reflect this. Details can be found in the tables below:

Pension & Life
Existing fund name Existing short name New fund name New short name
Aegon Ninety One Cautious Managed fund AGN 91 CAUTIOUS MGD Aegon Ninety One Global
Income Opportunities fund
AGN 91GLOBAL INC OPP

Source: Aegon UK

ARC
Existing fund name Existing short name New fund name New short name
Aegon Ninety One Cautious Managed (ARC) fund ARC AGN 91 CAU MGD Aegon Ninety Once Global Income Opportunities (ARC) fund ARC AGN 91GBL IN OPP

Source: Aegon UK

Changes to the fund’s objective

The underlying fund manager has updated the investment policy for this fund, which they believe better clarifies the fund’s key characteristics. To ensure consistency, we’re updating our version of the fund. Details can be found in the table below:

Existing fund objective New fund objective

This fund targets a return of UK Consumer Prices Index (CPI) +4% per year (before charges) over a five-year rolling period. It does so by investing around the world in a diverse range of shares of companies (up to 60% of the fund’s value at any time) and bonds. The fund also has the flexibility to invest outside of these asset classes. The fund may also invest in other transferable securities, money market instruments, cash or near cash, deposits, up to 10% in units or shares of other funds (which may be managed by a Ninety One group company – formerly known as Investec, or a third party) and derivatives, (financial contracts whose value is linked to the price of an underlying asset) which may be used for investment purposes (i.e. in order to achieve the fund's investment objectives) or for efficient portfolio management purposes e.g. with the aim of either managing the fund risks or reducing the costs of managing the fund. The Aegon fund has higher charges than the underlying Ninety One fund and will therefore be less likely to meet this target.

This fund aims to provide income, along with the opportunity for capital growth (i.e. to grow the value of your investment) and income, by targeting a return of UK Consumer Prices Index (CPI) +4% per year (before charges) over a five-year rolling period. The fund invests around the world in a diverse range of shares of companies (up to 60% of the fund’s value at any time) and investment grade bonds. The fund seeks to limit volatility (the pace or amount of change in the value of the fund) to lower than 75% of the shares of UK companies (measured using the FTSE All Share Index). This level of volatility is not guaranteed and there may be times when it is exceeded. The fund also has the flexibility to invest outside of these asset classes. The fund may also invest in other transferable securities, money market instruments, cash or near cash, deposits, up to 10% in units or shares of other funds (which may be managed by a Ninety One group company – formerly known as Investec, or a third party) and derivatives, (financial contracts whose value is linked to the price of an underlying asset) which may be used for investment purposes (i.e. in order to achieve the fund's investment objectives) or for efficient portfolio management purposes e.g. with the aim of either managing the fund risks or reducing the costs of managing the fund. The Aegon fund has higher charges than the underlying Ninety One fund and will therefore be less likely to meet this target.

Source: Aegon UK

There’s no guarantee the fund will meet its objectives. The value of an investment can fall as well as rise and isn’t guaranteed. Investors could get back less than has been paid in.

Investors will start to notice the changes on their statements, in our literature and on our website from 19 November 2021. The changes will be implemented gradually, so investors may notice both the old and new fund names and objectives in use for a time.

For more information on these funds you can view the fund factsheet via the ‘Fund prices and performance page’ and viewing either ‘Aegon Retirement Choices (ARC)’ or ‘Other fund ranges’.

What current investors need to do

Existing investors don’t need to do anything. Please speak to a financial adviser if you’re unsure about what these changes mean for you. If you don’t have a financial adviser, you can find one in your area at moneyhelper.org.uk