Demand for risk solutions remains strong as Aegon’s Core Portfolios reach £1 billion AUM01 July 2015 Back to results
- Increasing investor numbers and strong performance drives AUM through £1 billion
- The range gives savers a sophisticated risk-management strategy from seven low-cost funds, and can remove the requirement for multiple investments
- The range appeals to advisers who believe asset allocation is a key performance driver
- With TER’s in the 0.20%-0.25% range, the funds offer great value for money
Aegon’s Core Portfolios have attracted more than £1 billion of assets since their launch in June 2012. The Core Portfolios range has performed in line with expectations on a risk / return basis and has proved popular with advisers and their clients, achieving a particular risk and return profile in a single solution.
Rather than selecting a range of funds to achieve an investor’s goal, advisers and their clients can simply select from one of seven Core Portfolios. Each portfolio invests in a diversified blend of investments, industries and regions with the aim of matching clients’ risk and reward needs while keeping costs low.
Aegon has partnered with Morningstar OBSR, who use the Ibbotson asset allocation model to create the optimal strategic asset mix for each target risk level, tactically refining it to account for shorter-term market movements. The funds are made up of mainly passive investments, offering excellent value for money with TER’s in the 0.20%-0.25% range.
Performance in line with expectations
The £1 billion landmark was driven in part by strong returns, ranging from 12.0% for the year to end March for Adventurous investors, to 9.6% over the same period for a Conservative saver.
The Core Portfolios aim for higher growth potential as they move up the risk scale. And that’s exactly what they’ve delivered, avoiding the performance drag seen by a number of risk-managed solutions at the top end of the scale.
Nick Dixon, Investment Director at Aegon UK said: “This £1 billion milestone – achieved within three years – illustrates both strong performance and the fund range’s appeal to those who believe that asset allocation is a key performance driver.
“Selecting and monitoring funds can be risky and time consuming for advisers. The Core Portfolios let advisers focus on meeting clients’ broad financial planning needs rather than spending time overseeing and adjusting the funds they hold.
Investment costs are also a significant consideration for advisers and their clients. The Core Portfolio range provides access to a sophisticated asset allocation model with excellent value at 0.20-0.25% TER.”