Aegon UK partner with independent fund risk profiling group Distribution Technology to make fund selection smoother for advisers
Distribution Technology profile 21 of Aegon UK’s funds, including Risk-Target portfolios13 July 2015 Back to results
In 2011, the FCA made it clear that assessing client suitability in terms of risk is a key part of the advice process. As part of its ongoing commitment to advisers Aegon has subscribed 21 key funds to Distribution Technology’s market-leading fund risk profiling service in a move to make it easier for advisers who use Dynamic Planner® and Distribution Technology’s asset and risk model to choose the most appropriate funds for their clients.
Distribution Technology has profiled 21 Aegon funds, including Aegon’s Risk-Target portfolios which are designed to make saving easy by offering sophisticated risk-managed portfolios packaged as single funds. The profiles also include four low-cost tracker collections, which cost only 0.10% on Aegon’s platform and aim to track the markets they invest in.
The independent risk profiles will mean that advisers can more easily match Aegon’s funds to their client’s risk appetite, whilst helping them to demonstrate suitability in line with FCA regulations. Importantly, Distribution Technology will continue to monitor the risk profiles of the 21 funds on a quarterly basis.
Nick Dixon, Investment Director at Aegon UK, said: “Aegon is committed to making the fund selection process more robust. Risk profiling tools like Dynamic Planner®, when used as part of a holistic advice process, can be used as an indicator of fund suitability. As such, having our funds independently risk profiled puts adviser and client outcomes at the heart of our investment proposition. In a post-RDR world it is critical that advisers can demonstrate suitability of funds to clients, and we believe Distribution Technology has a rigorous approach to risk profiling funds which helps support advisers and their clients when choosing and monitoring an investment solution.”
Kevin Bull, Director of Asset Management Clients at Distribution Technology added: “Distribution Technology's fund risk profiling service provides financial advisers and their clients with a meaningful measure of the long-term investment risk of fund strategies and a mechanism for selecting funds appropriate for investor risk appetites and capacity for risk and is continued to be seen as a market leader in this field. We are delighted to welcome Aegon UK as a new partner into our fund risk profiling service which now captures the majority of multi-asset funds available to retail IFA’s and we look forward to working with them to ensure we continue to deliver suitable investment solutions for IFA’s clients.”
Fund ranges that have been profiled by Distribution Technology:
- Core Portfolios
- Select Portfolios
- MI Savings Portfolios
- BlackRock Aquila collections
- Stability fund
Fund risk profiles:
|Fund range / Risk ratings||Core / Select||MI Savings||BlackRock Aquila collections||Stability|
|4||Balanced||–||30/70 Equity and Bond Index||–|
|5||Balanced Plus||Lower||50/50 Bond and Equity Index||–|
|6||Growth||Medium||75/25 Equity and Bond Index||–|
|8||Adventurous||–||40/60 Global Equity Index||–|
*Please note, there is no Conservative Select Portfolio.