The fund aims for positive returns over a three-year period in all market conditions, but is not being marketed as an absolute return fund. It sits in the IMA Cautious Managed sector and has a long-only portfolio of equities and fixed income at its core, but will also invest in other asset classes as determined by market conditions.
Aegon head of investment strategy & economic Bill Dinning and investment manager of Aegon’s multi-asset group Sean Flanagan manage the fund. They will choose investments that will benefit from the long-term investment themes identified by Aegon Asset Management’s multi-asset group, while preserving capital when market conditions are changing.
As well as direct holdings in equities and bonds, the fund can invest in other funds and transferable securities, cash and near cash, warrants, money market instruments, deposits and derivatives and forwards. The fund is allowed indirect exposure to property and assets may be denominated in any currency.
Aegon says this is first fund through which retail investors can access the expertise of its multi-asset group, which until now has been available only institutional and professional investors.
Many multi-asset funds in the cautious managed sector are funds of funds that invest in a mix of asset classes only through other funds, but competition could come from CF Ruffer total return. This single manager fund has the same 10 per cent annual target return as Aegon’s fund.
IFA firm Bestinvest says the Ruffer fund has met performance target since launch in 2000. Ruffer also shares Aegon’s concerns about capital preservation and its focus mainly on equities and bonds within a broader multi-asset framework.