AEGON Ireland launches new protected growth fund

AEGON Ireland has launched a new protected growth fund for offshore bonds, offering investors peace of mind with a defined level of protection set at 80% of the highest ever unit price reached.

The fund initially invests 70% in equities and 30% in cash. The equity portion provides investors with the opportunity to take advantage of market gains. Fund values are calculated on a daily basis and the protection level is set at 80% of the highest ever unit price reached. The proportion of the fund invested in cash is dictated by market volatility with downward and upward trends automatically triggering moves into and out of cash. The maximum exposure to equities is 70%.

With market volatility likely to continue for the foreseeable future, AEGON continues to see an increase in financial adviser demand for products offering a degree of certainty for their clients.

The new protected growth fund offers exposure to a broad range of UK companies by investing in a FTSE All-Share tracker fund managed by Blackrock. The cash element is held on deposit with Barclays Bank plc.

The new protected growth fund has a below average risk rating, with the asset allocation dependent on market movements. The unit price of the fund can also be monitored on a daily basis to enable advisers and their clients know exactly how the fund is performing.

David Aaron, Marketing Communications Manager for Investment Products at AEGON said: "Although we have seen signs of improvement in stock markets it's too early to be certain that this will continue in the short to medium- term. We continue to see demand from advisers for products with a degree of security for their clients and our new protected growth fund offers just that.