Aegon Asset Management Launches UK Equity Absolute Return Fund

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Feb 26, 2010, 06:03 ET

LONDON, February 26, 2010 /PRNewswire/ -- AEGON Asset Management is launching a UK Equity Absolute Return Fund which aims to capitalise on the group's successful UK equity investment process from its award winning UK equity team*.

The fund intends to provide investors with positive absolute returns regardless of the direction of UK stocks. It will do this through investing in long and short positions in UK listed equities, with a strong focus on reducing volatility and preserving capital.

Managed by David Griffiths and David Pringle from AEGON Asset Management's UK equity team, the AEGON UK Equity Absolute Return Fund will use the team's successful stock-picking process to select assets. The fund will consist of three portfolios, long equity, short equity and cash. The size of the long and short portfolios will vary according to the manager's discretion but will typically not exceed a 10% net long or short position.

Griffiths and Pringle will be supported by the 12-strong UK equity team headed by Stephen Adams. The UK team has demonstrated its ability to provide competitive investor returns over the last five years with the UK Equity Fund managed by Adams returning 44% giving it a first quartile ranking.**

The AEGON UK Equity Absolute Return Fund will normally hold between 50 to 100 stock positions and will be constructed using contracts-for-difference, which are a means of gaining long and short exposure to individual stocks. The fund will contain the best ideas from the UK equity team's research with more weight given to ideas that diversify risk.

It is structured to be uncorrelated with the equity market and aims to generate out-performance of its benchmark through diverse and uncorrelated strategies. Although it will not have an overriding theme, it is expected to benefit from macro economic and other themes identified by the UK team working closely with AEGON Asset Management's head of strategy and chief investment officer.

To celebrate the launch of the fund AEGON Asset Management will be discounting the funds initial by 2.5% to 3% until 30 April 2010.

AEGON Asset Management European head of retail sales Steve Kenny says: 'This is an exciting addition to our current UK equity fund portfolio, which will be able to maximise the stock-picking process our UK team has been deploying so successfully over the last few years for its various funds.

'Both David's are very experienced UK equity investment managers and analysts, and they will be ably supported by Stephen and the wider UK team.'

The fund is a sub fund of the AEGON ICVC a UK domiciled Oeic and will have Ucits III investment powers.

About AEGON Asset Management

AEGON Asset Management takes an active approach to managing investments, helping retail and institutional clients to maximize available investment opportunities and realize their financial objectives. As part of AEGON, AEGON Asset Management has businesses in over twenty countries in Europe, the Americas and Asia. AEGON Asset Management manages approximately EUR 200 billion on behalf of individual investors, financial institutions, pension funds and insurance companies around the world. The AEGON Asset Management businesses employ over 1,300 staff worldwide.

    Fund Facts
    AEGON UK Equity Absolute Return Fund
    UK registered ICVC Oeic with UCITS III investment powers
    Investment universe of FTSE All-Share and AIM
    Managed by David Griffiths and David Pringle
    Benchmarked against the Bank of England base rate
    Minimum investment is GBP500 (A share class) or GBP250,000 (B share class)

Initial charge 5.5% (for A share class), discounted by 2.5% until 30 April 2010

Annual management charge of 1.5% for A share class and 0.75% for B share class

Additional performance fee will accrue daily, 20%, hurdle is the Bank of England base rate and there is a high water mark, crystallises quarterly.

Notes to Editors

AEGON Asset Management assets under management in the UK total more than GBP42.5 billion***.

* Source Best Overall Group Award in the Equity (Large) category Lipper UK Funds Awards 2008, Ethical Equity and UK Opportunities funds both rated AA by OBSR, UK Equity and UK Smaller Companies Rated A by OBSR, Citywire Sector Winner UK All Companies 2008.

**Source Lipper on a bid to bid cumulative basis as at 29 January 2010.

***Source AEGON Asset Management as at 31 December 2009.

Discount applies only to lump sum investments, minimum GBP500.

The UK Equity and UK Equity Absolute Return Funds are Sub-Funds of the AEGON ICVC (an Open Ended Investment Company). AEGON Asset Management UK plc is the Authorised Corporate Director of the company (ACD).

AEGON Asset Management includes AEGON Asset Management UK plc (no: 113505) and AEGON Investment Management UK ltd (no: 212159). Both are registered in Scotland and have their registered office at AEGON House, 3 Lochside Avenue, Edinburgh Park, Edinburgh, EH12 9SA. AEGON Asset Management UK plc is authorised and regulated by the Financial Services Authority, (FSA reference no: 144267). AEGON Investment Management UK ltd is an appointed representative of Scottish Equitable plc, an AEGON company, whose registered office is 1 Lochside Crescent, Edinburgh Park, Edinburgh, EH12 9SE (FSA reference no: 165548).

    Contact information
    Media relations: Adrian Cammidge
    +44(0)207-200-2510
    [email protected]

    This press release is also available on http://www.aegonam.co.uk.

SOURCE AEGON Asset Management