From 1 April 2022, the Aegon Schroders Life Intermediated Diversified (BLK) fund benchmark and objective were updated across all share classes available via the Aegon TargetPlan fund range.
The annual management charge (AMC) for the fund has also reduced.
Nothing else about the fund will change as a result of this; for example, the fund’s TargetPlan risk profile and fund manager will all remain the same.
The changes in more detail
Changes to the fund objective and benchmark
The underlying fund manager, Schroders, has advised that it’s updated the fund objective to reflect the funds new benchmark and clarify the funds long-term volatility target (a measure of how much the fund's returns may vary over a year).
The fund’s target benchmark has been updated from “UK Consumer Price Index (CPI) plus 5% (after charges)” to “ICE Bank of America (BofA) Sterling 3-Month Government Bill Index plus 4.5% per year (before charges)”.
To ensure consistency with the underlying fund, we’re updating our version of the fund. Details can be found in the table below:
| Old fund benchmark | New fund benchmark |
|---|---|
| UK Consumer Price Index (CPI) plus 5% (after charges) | ICE BofA Sterling 3-Month Government Bill Index plus 4.5% per year (before charges) |
| Old fund objective | |
| The fund aims to achieve capital growth and income in line with UK inflation (as measured by the UK Consumer Price Index) +5% per year over a 5 to 7 year period (after charges), with a volatility less than two thirds of global equities by investing in a diversified range of assets and markets worldwide. However, there is no guarantee that this objective will be achieved and capital is at risk. The asset classes in which the fund may invest include collective investment schemes, exchange traded funds, real estate investment trusts or closed ended funds, in equities, bonds and alternative asset classes worldwide. Alternative assets may include funds that use absolute return strategies or funds that invest indirectly in real estate, private equity and commodities. The fund may invest more than 10% of its assets in collective investment schemes (including other Schroder funds). The fund may also invest in warrants and money market instruments and may hold cash. The fund may use derivatives with the aim of achieving investment gains, reducing risk or managing the fund more efficiently. The fund may use leverage and take short positions. The Aegon TargetPlan fund may have higher charges than the underlying fund and therefore may be less likely to meet this target. | |
| New fund objective | |
| The fund aims to achieve capital growth and income in line with the ICE BofA Sterling 3-Month Government Bill Index +4.5% per year over a 5 to 7 year period (before charges), by investing in a diversified range of assets and markets worldwide. However, there is no guarantee that this objective will be achieved. The Fund aims to achieve this with a target average annual volatility (a measure of how much the Fund's returns may vary over a year) over the long term (five to seven years) of less than 67% of that of global stock markets (represented by the MSCI All Country World GBP hedged index). | |
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 they invest.
Updated annual management charge (AMC)
From 1 April 2022, the AMC for the fund reduced by 0.10% across all share classes available via the Aegon TargetPlan fund range.
What this means for you
Investors will start to notice the changes on their statements, in our literature and on our website from 1 April 2022. The changes will be implemented gradually, so investors may notice both the old and new information in use for a time.
For more information on this fund you can view the fund factsheet via the ‘Fund prices and performance page’ and selecting ‘TargetPlan funds’.
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 visit moneyhelper.org.uk/choosing-a-financial-adviser to find the right one for you.