AEGON Asset Management is to launch the UK’s first Ethical Cautious Managed fund to the retail market on 1 March 2007.

The Ethical Cautious Managed fund marks another first for AEGON Asset Management, which was also the first to launch an Ethical Corporate Bond fund in April 2000, a move since copied by many of its rivals.

It is one of three new funds AEGON Asset Management is bringing to the market, which also includes a UK Cautious Managed fund and a UK Opportunities fund.

The UK Cautious Managed and Ethical Cautious Managed funds have been launched in response to demand from UK investors and advisers for lower risk managed funds as an alternative to with-profits and cash investments. They aim to provide a relatively safe and steady return through a low volatility investment strategy with a maximum of 60% of the funds held in equities and 40% in fixed income.

Both Cautious Managed funds build on AEGON Asset Management’s recognised capabilities in the UK equity and fixed income sectors. The Ethical Cautious Managed combines AEGON Asset Management’s stringent ethical criteria with a cautious investment philosophy, bringing together the expertise of both its Ethical Equity team and its Ethical Corporate Bond team.

Audrey Ryan will manage the Ethical Cautious Managed fund, supported by Iain Buckle. Audrey also runs AEGON Asset Management’s Ethical Equity fund, which is AA rated by Forsyth-OBSR and has achieved consistent strong top quartile performance over one, three and five years*. Iain Buckle is also the support manager of AEGON Asset Management’s Ethical Corporate Bond Fund, which is AA rated by Forsyth-OBSR.

The Ethical Cautious Managed fund intends to take an unconstrained investment approach, capitalising on the recognised research capabilities of the UK equity team.

Ryan says:

“The Ethical Cautious Managed fund will aim to take advantage of our experience and in-depth knowledge of the UK equities market without any benchmark constraints. It will be a high conviction, stock-picking fund with no sector or stock limits and have an ideal range of 50 to 60 stocks at launch.”

Jon Bennett, AEGON’s director of third party business, says:

“We believe there is significant demand from advisers and investors for a real and viable alternative to with-profits and cash investments. At AEGON Asset Management, we are well placed to deliver this alternative, with our recognised strength in the fixed income market and growing reputation for UK equities.

“The Ethical Cautious Managed is a unique proposition which marks us out from our rivals. It is a groundbreaking product, which harnesses our leading ethical capabilities for both equities and fixed income. It truly builds on our reputation for innovation, where we lead and others follow.”

To mark the launch of these new funds, early investors will benefit from a 2.5% discount reducing the initial charge to 3% until 30 April 2007. This means that if the 3% initial commission is rebated there are zero up-front costs for the investor.

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Notes to Editors

AEGON Asset Management UK's assets under management totaled more than £40.4 billion***. The company's activities are divided into three business areas, Institutional Business, Insured Business and Retail-Fund Business.

* Lipper Fixed Income Manager of the Year 2007 and Money Observer Best Ethical Fund 2007.
** Source Lipper based on bid to bid basis to 9th February 2007.
***Source: AEGON Asset Management as at 31 December 2006

Curriculum Vitaes

Audrey Ryan – Investment Manager, UK Equities
Audrey joined AEGON in January 1997 from General Accident Plc where she was a UK small companies portfolio manager. She qualified as a chartered accountant in 1993 after graduating with a degree in accountancy. She also has an MSc in investment analysis and is a member of ASIP. Audrey manages AEGON 's Ethical Equity Fund and has done so since 1999. She is a sector specialist in several UK small-cap sectors together with the leisure & hotels and electronics & electricals sectors. Audrey is currently rated ‘AA’ by Citywire.

Peter Shaw – Investment Manager, UK Equities
Peter joined AEGON Asset Management in July 2000. His current responsibilities include management of the UK Equity Tactical Pension Fund, UK small companies funds and analysis of several UK small and mid-cap sectors together with the technology, transport and auto sectors.  Peter graduated from the University of Edinburgh in 1996 with a BCom joint honours degree in business studies and accountancy. He qualified as a CA in 1999 and is a Member of the Securities Institute.

Iain Buckle – Investment Manager, Fixed Income
Iain joined AEGON in 2000 from Baillie Gifford, where he was a member of their fixed income team. He is an Investment Manager within the credit team and is responsible for managing a number of high performance target portfolios, including the Enhanced Corporate Bond Fund. He is also responsible for analysing the securitised sector. Iain holds an MA honours degree in economics from Heriot-Watt University and is a CFA charterholder.

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