Aegon “tries to form a partnership with advisers” via its portfolio management, its head of portfolio management Anthony McDonald has told Money Marketing.
July 2023 marked the three-year anniversary of the Aegon UK Risk-Managed Portfolios, a suite of six multi-asset funds.
The funds range from risk managed 1 to risk managed 6, each displaying different levels of risk. Aegon’s aim is to cater from the cautious to the adventurous investor.
McDonald said: “Our main distribution is through independent financial advisers via the Aegon platform.”
A report published earlier in 2023 by Aegon in partnership with Nextwealth found that multi-asset funds are the top product that financial advisers would recommend to clients in retirement.
McDonald believes advisers like working with Aegon’s multi-asset funds as it targets different levels of risk, it is set at a competitive price and it’s designed for the long-term investment.
“Advisers really like the combination of what the portfolios offers them.”
The Aegon in partnership with Nextwealth report also found that that 59% of advisers said the most important reason for the increased use of multi-asset funds is to simplify the advice process.
McDonald added: “It means advisers do not have to spend too much time detailing every aspect of the investment and after their due diligence on the multi-asset fund they can put a client into the right risk level for them.”
When McDonald speaks to advisers, he can tell there is still “good appetite for this business” and makes up a “core component” of the IFA business.
Additionally, McDonald’s team has almost doubled in size which “has built something incredibly disciplined”.
McDonald said: “Over the past three years, we’ve navigated challenging markets while staying true to our investment philosophy. We remain committed to our aim of achieving attractive long-term returns as we navigate the complex global financial landscape.”
The multi-asset funds react to the surrounding market, so as McDonald explained as bonds were previously expensive but now have become a lot cheaper, the funds now hold more bonds.
As Japanses equities are cheap as well but in McDonald’s opinion “shouldn’t be” the funds have increased exposure to Japanese equities as well.
In October, Aegon chief investment officer (CIO) Tim Orton was appointed chief executive officer of Origen Financial Services.
Orton will take up this position from 1 January 2024, subject to regulatory approval.
Origen has been a wholly owned subsidiary of Aegon UK for over 10 years and is a financial advice business.
He joined Aegon in 2019 and previously worked for Aviva where he was CEO of Aviva Investors and managing director pensions and investment at Aviva Life UK.
This appointment follows current Origen CEO Rob Waller announcing he is set to retire at the end of 2023.
Waller is expected to take up a position on the Origen board in April 2024 as a non-executive director, again subject to regulatory approval.
Comments