- Robust risk management helps to deliver reassuring results for investors
- The strategy complements the growing use of multi-asset funds in the adviser community
July marked the three-year anniversary of the Aegon UK Risk-Managed Portfolios, a suite of six multi-asset funds that aim to cater from the cautious to the adventurous investor. This three-year anniversary provides an opportunity to review the funds’ performance and reflect on their key characteristics.
Launched during the COVID-19 pandemic in July 2020, the funds were designed to meet the growing demand for clear and diversified investment strategies. Since then, the portfolios have navigated through a global economic recovery, a land war in Europe, and the highest rates of inflation in the UK and US for 40 years.
The Risk Managed portfolios exist within a highly competitive marketplace for risk-targeted multi-asset funds. The combination of price and their performance relative to key competitors1 offer value2 which make the fund range a compelling option for advisers.
A report published earlier in 2023 by Aegon in partnership with Nextwealth3, found that multi-asset funds are the top product that financial advisers would recommend to clients in retirement. The report found that the use of multi-asset funds has been growing, with 48% of advisers saying they "always" or "often" recommend them, compared to 35% in 2019.
The report also found that the most important reason for the increased use of multi-asset funds is to simplify the advice process. 59% of advisers cited this as the most important reason, followed by reduction in overall client costs (49%).
Anthony McDonald, Head of Portfolio Management at Aegon UK said: “Our Aegon UK Risk-Managed Portfolios are designed to help reduce risk and volatility, and to simplify the advice process with different risk levels to suit individual needs. We launched this fund range in July 2020 as an all-in-one packaged fund solution.
“Over the past three years, we've navigated challenging markets while staying true to our investment philosophy4. We remain committed to our aim of achieving attractive long-term returns as we navigate the complex global financial landscape.”
For more information on the portfolios, advisers can visit the Risk-Managed Portfolios hub on Aegon UK’s website
1Returns over last three years (from funds’ inception to 31 July 2023):
Fund |
Return |
Benchmark |
WS Aegon Risk-Managed Portfolio 1 |
-2.71% |
-3.22% |
WS Aegon Risk-Managed Portfolio 2 |
-0.22% |
-0.57% |
WS Aegon Risk-Managed Portfolio 3 |
2.22% |
2.10% |
WS Aegon Risk-Managed Portfolio 4 |
5.11% |
4.80% |
WS Aegon Risk-Managed Portfolio 5 |
7.72% |
7.84% |
WS Aegon Risk-Managed Portfolio 6 |
10.64% |
11.00% |
* WS Aegon Risk-Manged Portfolios launched 7 July 2020.
2The WS Aegon Risk-Managed Portfolios all have a fixed OCF charge of 0.25%. Please note that other charges may apply and Aegon may vary charges in future.
3Aegon UK research with NextWealth for the 2023 Managing Lifetime Wealth: retirement planning in the UK report. The latest research was conducted in November and December 2022 with 221 financial advisers and 209 consumers of retirement advice. Yearly comparisons are offered to the 2018 version of this report with 267 financial advisers. Read more here: https://www.aegon.co.uk/advisers/advice-makes-sense/retirement-advice-in-the-uk-report.html.
4Aegon’s investment philosophy is based on four key principles:
- Markets aren’t fully efficient.
- A long-term view is crucial to successful investing.
- Starting valuations are a key determinant of long-term returns for equities and bonds.
- Asset allocation is an important driver of portfolio risk and return.
About Aegon
In the UK, Aegon offers pension and investment solutions to over 4 million customers. Aegon employs over 2,000 people in the UK and together with around 600 people employed by Atos, we serve the needs of our customers. More information: www.aegon.co.uk. Figures correct as at 31/12/2022.
Aegon UK is part of the wider Aegon Group, based in the Netherlands, whose roots go back to the first half of the nineteenth century. Since then, Aegon has grown into an international business, with over 29 million customers in multiple countries and over 747.4 billion EUR of revenue generating investments (as at 30/12/2022). More information on www.aegon.com.
The information in this press release is intended solely for journalists and shouldn’t be relied upon by any other persons to make financial decisions.