Aegon UK launches range of risk-managed portfolios
Six portfolios corresponding to risk levels
Aegon UK is expanding its multi-wrapper investment range with the launch of six risk-managed multi-asset portfolios.
The portfolios, named LF Aegon Risk-Managed, will have risk ratings from one to six, which corresponds with the name, and varies from a majority bond holding with some equities and cash at the lowest end of risk, through to a near entire equities fund, with a small bond allocation and minimal cash.
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The funds will be managed by Richard Whitehall, head of portfolio management at Aegon, working alongside Morningstar to determine the "optimal asset allocation" for each product.
BlackRock will be the primary provider of the passive components that will be a feature of the portfolios, while commodities and derivatives will not be an element of the funds, as they "can add risk and cost without necessarily enhancing returns", according to Whitehall.
The funds will also be able to invest in property securities, along with UK, North America, Europe, Japan, Pacific ex-Japan and emerging market equities and UK government, corporate and index-linked bonds, along with overseas government and corporate bonds.
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Volatility ranges will span from 4-8% at the lowest end of the risk spectrum in LF Aegon Risk-Managed 1, to 12.5-17.5% for the highest risk LF Aegon Risk-Managed 6.
Each portfolio is available across pensions, ISAs and GIAs through Aegon Retirement Choices or the Aegon platform, with an ongoing charges fee of 0.25%.
Tim Orton, managing director for investment solutions at Aegon, said: "We know that there is a demand for value-focused investment strategies that offer a simpler way to invest, aiming to grow savings while taking account of their appetite for risk.
"These funds also make it easier for advisers to meet their regulator obligations and are designed to fit in many centralised investment propositions.
"We believe the funds will make a valuable addition to the wide range of investment options advisers and their clients have access to via our platforms."
Whitehall added: "This approach means we can offer a governed range of funds designed to meet different client risk appetites at a competitive cost - something that appeals to a broad set of investors.
"In short, we believe keeping to the principle of value through simplicity will ultimately lead to better outcomes for customers."
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