Aegon has launched an ultra-low-risk fund to protect retirement-age investors’ capital.
The Aegon Stability fund invests in four defensive funds that have complementary portfolios and high levels of liquidity: the Jupiter Strategic Reserve, Fulcrum Diversified Core Absolute Return, Kames UK Equity Absolute Return and Newton Global Dynamic Bond funds.
The Aegon fund aims to beat three-month Libor, after charges, with three-month Libor currently at 0.25 per cent. The fund’s total expense ratio is 0.87 per cent.
The firm says there is an increasing need for low-risk pension investments to help prevent losses like the 30 per cent fall in global markets following the credit crunch.
The Stability fund is exclusive to Aegon and will be available across all of its advised propositions. Its primary focus is on capital preservation, using absolute return strategies with the aim of generating growth even in falling markets.
Aegon investment director Nick Dixon says: “From April, people will have a lot more control over how they manage their money in retirement. This fund will benefit those savers who want to preserve their hard-earned savings pot and are looking for a straightforward solution, conveniently packaged within one fund.”