July marked the three-year anniversary of the Aegon UK Risk-Managed Portfolios, a suite of six multi-asset funds that aim to cater from the cautious to the adventurous investor.
This three-year anniversary provides an opportunity to review the funds’ performance and reflect on their key characteristics.
Launched during the COVID-19 pandemic in July 2020, the funds were designed to meet the growing demand for clear and diversified investment strategies. Since then, the portfolios have navigated through a global economic recovery, a land war in Europe, and the highest rates of inflation in the UK and US for 40 years.
The Risk Managed portfolios exist within a highly competitive marketplace for risk-targeted multi-asset funds. The combination of price and their performance relative to key competitors1 offer value2 which make the fund range a compelling option for advisers.
A report published earlier in 2023 by Aegon in partnership with Nextwealth3, found that multi-asset funds are the top product that financial advisers would recommend to clients in retirement. The report found that the use of multi-asset funds has been growing, with 48% of advisers saying they “always” or “often” recommend them, compared to 35% in 2019.
The report also found that the most important reason for the increased use of multi-asset funds is to simplify the advice process. 59% of advisers cited this as the most important reason, followed by reduction in overall client costs (49%).
Anthony McDonald, Head of Portfolio Management at Aegon UK said: “Our Aegon UK Risk-Managed Portfolios are designed to help reduce risk and volatility, and to simplify the advice process with different risk levels to suit individual needs. We launched this fund range in July 2020 as an all-in-one packaged fund solution.
“Over the past three years, we’ve navigated challenging markets while staying true to our investment philosophy4. We remain committed to our aim of achieving attractive long-term returns as we navigate the complex global financial landscape.”
