Aegon Ireland launches protected fund
Aegon Ireland has launched a protected growth fund for offshore bonds to assuage adviser demand for products offering a degree of certainty.
The Aegon Ireland Protected Growth 2 Fund provides investors with some 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. Fund values are calculated on a daily basis and there is an annual management charge of 1.1%.
The proportion of the fund invested in cash is dictated by market volatility with movements automatically triggering moves into and out of cash. The maximum exposure to equities is 70%.
Aegon said it continued to see an increase in financial adviser demand for products offering a degree of certainty as the outlook for equities remained uncertain despite the gains of the past 12 months.
The 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.
Aegon said the asset allocation structure of the protected growth fund gave it a below average risk rating. The unit price of the fund can be monitored on a daily basis for closer surveillance of its performance.
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.”