AEGON Asset Management Targets Pension Funds With New Property Launch

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Mar 02, 2010, 08:00 ET

LONDON, March 2, 2010 /PRNewswire/ -- AEGON Asset Management is launching a property fund which aims to provide pension fund investors with attractive returns through the active management of a portfolio of direct UK property investments.

The AEGON Active Value Property Fund, managed by David Wise and Helen Batten, will target properties in the GBP3 to GBP10 million size range, an area largely ignored by many funds, and look to build a balanced portfolio of property from across the UK. The fund is targeted at investment professionals and is suitable for defined benefit and defined contribution pension schemes.

AEGON Asset Management believes income will be a major factor for property returns over the medium term and it believes that by combining income with its property team's recognised stock-picking and asset management skills, it will be able to produce attractive returns for longer term investors.

The AEGON Active Value Property Fund will have no gearing, except in the short term for bridging sales or purchases and will not have any indirect holdings. It will have an initial projected yield of 7%, although all income derived from its investments will be reinvested. The fund will aim to outperform the IPD/Association of Real Asset Funds All Balanced Funds Index, which includes many higher risk funds that utilise gearing and indirect property, by 0.5% on a rolling three-year basis.

It will have a broad sector allocation, investing in the main commercial property areas of offices, industrial and retail, including high street and warehouse units. But it may also consider leisure, healthcare, residential and student accommodation.

The fund will use a combination of top-down and bottom up in its investment approach, and will focus on Wise's ability to source good quality asset management stock, often off market and Batten's skills at the management of the assets.

Batten and Wise have over 30 years property experience and will be supported by the wider AEGON Asset Management's 12-strong property team.

AEGON Active Value Property Fund, lead manager, Wise says: 'We believe there is a gap in the market for our fund to gain a competitive edge by buying properties in the GBP3-10 million size range, that are too big for private buyers but too small for most institutional investors.

'As a team, we have a very strong track record in finding and buying properties that are basically good quality although in potential need of refurbishment or repositioning in the market, and Helen and I will focus on finding these properties to maximise the potential return of the fund.'

    Fund Facts

    AEGON Active Value Property Fund

    Managed by Helen Batten and David Wise

    Target Performance of 0.5% above the IPD/AREF All Balanced Fund median
    over a rolling three year basis

    Projected Net Initial Yield - in excess of 7%

    Minimum investment is GBP100,000

    Annual management charge of 0.5%

Notes to Editors

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

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

Where funds are invested in property, investors may not be able to switch or cash in their investment when they want because property in the fund may not always be readily realisable. If this is the case we may defer a request to switch or cash in units. Whilst property valuation is conducted by an independent expert, any such valuation is a matter of the valuer's opinion. Property funds invest in a specialist sector, which may be less liquid and produce more volatile performance than an investment in broader investment sectors.

Any investment objective, performance benchmark and yield information will be treated as a target only and should not be considered as an assurance or guarantee of the performance of the fund or any part of it.

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).

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.

    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