Aegon ties with JP Morgan for risk-targeted solutions

Aegon has launched three volatility-capped risk profile funds powered by JP Morgan Mansart Investments.

The range includes the Scottish Equitable JP Morgan Mansart Risk Profile 10, Scottish Equitable JP Morgan Mansart Risk Profile 12 and the Profile 14. Each of the funds aims to keep volatility at or below a yearly cap of 10 per cent, 12 per cent and 14 per cent, respectively.

The new launches will be available exclusively through Aegon in its pension and Aegon Retirement Choices platform fund ranges.

The funds use swaps to get exposure to UK fixed interest, developed market and emerging market equities, while aiming to maintain risk in line with the respective risk profile.

Aegon head of investment services Mark Pearson says: “The recent FSA suitability guidance underpinned the development process and these funds are unique in the market, as they employ active risk budgeting on a daily basis. We would therefore have reasonably high expectation, albeit no absolute certainty, that they will meet their risk objectives.”