On the 30 September 2023, we’re updating the fund objective and benchmark for the Aegon Ninety One Global Income Opportunities fund across our insured Pension, Life and Aegon Retirement Choices (ARC) fund ranges.
The changes in more detail
The fund objective explains how the fund invests and what it’s trying to achieve for investors.
Benchmarks are used to measure a fund’s performance against similar types of investments, similar markets or regions.
The underlying fund manager, Ninety One, has updated the fund’s benchmark of UK Consumer Prices Index (CPI) +4% per year over five-year periods. It’s replacing this with a benchmark it feels better reflects the types of investments the fund holds. The fund objective has also been updated.
To make sure our version of the fund matched the underlying fund, we’re updating it. Details are in the table below:
Old fund objective |
New fund objective
|
This fund aims to provide the opportunity for capital growth and income, by targeting 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 investment grade bonds. Due to the fund’s exposure to investment grade bonds, the fund’s volatility (the pace or amount of change in the value of the fund) will be lower than 75% of the of 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 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 capital growth (to grow the value of your investment) and income over five years. It does so by investing in a range of shares of companies (at least two thirds of the fund’s value at any time) and investment grade bonds. Due to the fund’s exposure to investment grade bonds, the fund’s volatility (the pace or amount of change in the fund value) will be 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 focuses on investing in assets that offer a reliable level of income, together with opportunities for capital growth in many market conditions, using in-depth analysis and research on individual companies. |
Old benchmark |
New benchmark |
UK CPI +4% |
Composite Index of MSCI World High Dividend Yield GBP hedged (45%) Net. BBG Global Aggregate TR GBP Hedged (55%). |
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 is not guaranteed. Investors could get back less than they invest.
We’ll update our literature and our website as soon as we can, but investors may notice the old and new information in use for a time.
You can find more information about this fund, on the ‘Fund prices and performance’ page on our website and selecting either ‘Other fund ranges’, or ‘Aegon Retirement Choices (ARC)’ .
What current investors need to do
Existing investors don’t need to do anything. Please speak to a financial adviser if you’re not sure about what these changes mean for you. If you don’t have a financial adviser, you can visit moneyhelper.org.uk/choosing-a-financial-adviser to find the right one for you.