Aegon Asset Management is set to launch its first UK absolute return fund by the end of Q1.
The UK-domiciled long/short Ucits III fund will be managed by the 12-strong UK equity team, headed up by Stephen Adams.
The fund is not expected to exceed 10% net long or short, bringing it in line with competitors.
The new product will provide diversification for existing equity investors and is one of a number of opportunities the group is looking at in the UK equity space.
"We have a good track record and have managed to generate good performance in varied economic and market conditions over the last five years," Adams says.
"The UK Equity Income fund will be followed by the launch of an absolute return product, which can be expected within the next couple of months."
The expected launch follows the unveiling last week of the firm's new global absolute return product.
The Dublin-registered Aegon Global Opportunities fund is managed by a UK and Netherlands-based team headed up by Olaf Van den Heuvel. It offers a discretionary global macro strategy investing in derivative and non-derivative assets.
In June last year, Aegon added the £15.1m UK Equity Income fund, managed by Douglas Scott and Iain Wells, to its three existing UK equity funds.
The £158.4m UK Equity fund, managed by Adams, is currently first quartile over three and five years.
Audrey Ryan's £47.2m UK Opportunities and Elaine Morgan's £9.1m UK Smaller Companies are both first quartile since their respective launches in March 2007 and June 2006.
