AEGON launches the UK’s first Ethical Cautions Managed fund

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

The Ethical Cautious Managed 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 a viable 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 award winning expertise of both its Ethical Equity team with that of the Ethical Corporate Bond team.

Audrey Ryan and Iain Buckle will manage the Ethical Cautious Managed. Audrey also runs AEGON Asset Management’s award wining Ethical Equity fund which has achieved consistent strong top quartile performance over one and three years, with returns of 25.38% and 23.35% respectively.

Peter Shaw and Iain Buckle will run the UK Cautious Managed.

AEGON, director third party business, Jon Bennett 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.”

AEGON Asset Management is also launching a UK Opportunities fund, which aims to achieve maximum returns through a flexible and pragmatic investment approach. It will invest in a multi-cap portfolio of predominately UK based stocks, although initially there will be a greater emphasis on small to mid-caps, which reflects AEGON’s view of where the value is in the current market.

Managed by Audrey Ryan, with Peter Shaw as support manager, the UK Opportunities fund intends to take an unconstrained investment approach, capitalising on the recognised research capabilities of the UK equity team.

To mark the launch of these new funds early investors will benefit from a 2.5% discount reducing the initial charge to 3% until 30th April 2007.