Citywire printed articles sponsored by:
View the article online at http://citywire.co.uk/new-model-adviser/article/a637177
Aegon launches risk-rated fund range
by Rachael Revesz on Nov 26, 2012 at 13:27
Aegon has launched a range of risk-rated funds aimed at giving investors more certainty about their income as they reach retirement.
The funds, called the Core Risk Profile Lifestyle Portfolios, are funds of funds and invest predominantly in tracker funds, property and cash.
The funds, which range from adventurous to cautious, will be run on a process Aegon has called ‘lifestyling’ meaning they will initially invest in a diversified portfolio then gradually switch to long gilts and cash to preserve capital in the years leading up to a client’s retirement.
The funds assume investors plan to buy an annuity on retirement. The cash allocation is aimed to cater for the tax-free cash lump sum, which, currently legislation, 25% of a pension pot.
The range follows from Aegon’s launch of Core Risk Profile Portfolios in June this year.
Mark Pearson, Aegon head of investment services, said the new portfolios showed Aegon was not reliant on third parties to launch investment products.
‘The launches demonstrate that we don’t only work with strategic partners on bespoke products, but also have the capacity to develop our own solutions to cater for investors changing needs as they approach retirement, ‘ he said. ‘We understand that retiring is a major event in life and believe in offering customers a simple, low cost solution that matches their attitude to risk. The availability of the lifestyle versions of these funds means we can now cater for those customers’ needs right up to retirement.’
News sponsored by:
Today's top headlines
iShares: Time to shatter the ETF myths
As result of industry changes - the retail distribution review - and a growing focus on cost-efficient solutions, we anticipate the number of investors using ETFs will rise significantly over the coming years.
But as with any newer product, especially in the financial world, various misconceptions about ETFs have perpetuated over the years and iShares is committed to addressing and ultimately dispelling these.
More about this article:
More from us
- Paradigm selects Aegon for off-platform GPP
- Aegon takes £4m hit as RDR impacts business
- Aegon unveils post RDR adviser charging proposition
- 300 Aegon staff switch to Serco in £170m outsourcing deal