Aegon launches risk-managed portfolios across platforms

Investment advisers can access the new risk-managed portfolios through its Aegon platform or Aegon Retirement Choices. The portfolios have an ongoing charges figure (OCF) of 0.25%.

Each fund has a different risk and return profile to reflect client preferences and "help support the advice process," the provider said.

Aegon launched its first OEICs range for Nationwide Building Society in 2019 and said it was now making its own funds widely available beyond a pensions wrapper.

Aegon managing director for investment solutions Tim Orton said the launch came at a "very relevant" time as many clients may want to revisit their risk tolerance following the coronavirus-related market volatility.

He also said the funds gave advisers a simple and clear set of options should they want to take a different approach to investing client monies.

"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 regulatory obligations and are designed to fit in many centralised investment propositions.

"Aegon has a great deal of experience managing multi-asset funds. Through extending this to an OEIC range we've sought to extend this availability beyond pensions, to our ISA and GIA investors and make it easier for advisers to use for platform clients."

Orton said he expected clients in the "mid-range" to use the portfolios, with investable assets between £50,000 and £150,000. However, he said other larger investments were also possible: "It is not necessarily about the size of the client but the sophistication".

The funds are being managed by Richard Whitehall, head of portfolio management at Aegon who works with Morningstar to determine the "optimal asset allocation for each fund".

Aegon said the funds use low-cost passive components, predominantly provided by BlackRock.

It added risk management and governance components made it easier for advisers to comply with MIFID II and PROD regulatory requirements. The range is mapped to risk ratings from Defaqto, Dynamic Planner, FinaMetrica and Synaptic.

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.

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• Topics
• Managed solutions
• Ratings, Research & Risk
• Aegon
• Tim Orton
• Richard Whitehall
• OEIC
• BlackRock
• Defaqto
• FinaMetrica
• Morningstar
• multi-asset
• risk-managed funds