AEGON Asset Management Launches Unique Asset Allocation Service for Pension Funds

EDINBURGH, Scotland, January 21 /PRNewswire/ -- AEGON Asset Management is marking the start of 2010 with the official launch of its unique Asset Allocation Service.

The service aims to provide a customised asset allocation facility to meet the strategic objectives of a particular pension scheme.

The innovative service provides pension schemes with a bespoke overlay which uses derivatives and other financial instruments to actively mitigate against downside risk, while optimising upside opportunities.

The Asset Allocation Service is run by AEGON Asset Management's Multi Asset Group which is managed by its European head of multi asset investing Scott Jamieson.

AEGON Asset Management believes that investment strategy risk represents the biggest threat to a pension scheme. Most schemes usually have a mix of investments designed to meet its strategic objective based on 10 to 20-year time horizons, during which time the asset allocation remains largely unaltered.

As a result many schemes are vulnerable to market volatility which can have a detrimental impact on its investment objectives and lead to it not fulfilling its potential. AEGON Asset Management's service aims to address these limitations whilst allowing the scheme to retain its mix of physical investments.

Jamieson says: 'Most investors construct portfolios with a spread of assets in the hope that it will mitigate for market turbulence in a particular asset class. Unfortunately the recent credit crunch has clearly demonstrated a situation where asset classes converge and the benefit of diversification is lost. We believe that similar situations will arise in the future. Through hedging our service explicitly seeks to protect the scheme from these severe market conditions by providing a payback commensurate with the extent of any market setback

Note to Editors:

AEGON Asset Management UK's assets under management total more than GBP42 billion*. The company's activities are divided into three business areas, Institutional Business, Insured Business and Retail-Fund Business.

*Source: AEGON Asset Management as at 30 November 2009.

Important Notice - The Asset Allocation Service (AAS)

This press release relates to the AAS provided by AEGON Asset Management UK plc (AAM). The AAS is subject to the terms of an investment management agreement between AAM and a pension fund selecting the AAS and subject to such disclaimers, notices, warnings or separate agreements, including those set out below, as AAM may communicate to you or agree with you.

THE CONTENT OF THIS PRESS RELEASE IS DESIGNED FOR THE PROFESSIONAL PENSION FUND MARKET. IF YOU ARE NOT AN INVESTMENT PROFESSIONAL OR A PERSON PROFESSIONALLY INVOLVED IN OR HAVING RESPONSIBILITIES RELATING TO PENSION FUND MANAGEMENT YOU SHOULD NOT ACT UPON IT.

This press release is directed only at persons having professional experience in matters relating to investments falling within article 19 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 and high value entities or trusts falling within article 49 of that Order. Consequently, AAM has not approved the content of this press release for the purposes of section 21 of the Financial Services and Markets Act 2000. No other person should act upon this press release or any information contained in it. AAM has procedures in place to ensure that no instrument or investment activity referred to in this press release is available to any other person.

The content of this press release has been prepared solely for information purposes. Any statements, forecasts, past performance data, estimates or projections included in the press release are for illustrative purposes only and may be provided by AAM or third parties. Any view, opinions or statements made in or in relation to this press release should not be interpreted as recommendations or advice. Past performance is not a guide to future performance. The value of investments and the income from them may fall as well as rise and there is no guarantee that the AAS will achieve the objectives described in this press release.

No investment advice or tax advice is being given in this press release. Nothing in this press release should be regarded as an offer to provide investment services or products or as a comment on the merits of engaging in any investment transaction or activity or an inducement to do so. The content of this press release is subject to change and correction without notice.

AAM does not represent that (i) the content of this press release; (ii) any investments or investment services referred to in this press release; or (iii) any oral or written statements provided by or made by AAM or persons connected with it are suitable for or relevant to you.

AEGON Asset Management UK plc provides segregated and retail funds and is the Authorised Corporate Director of AEGON ICVC, an Open Ended Investment Company. AEGON Asset Management UK plc is authorised and regulated by the Financial Services Authority, (FSA reference no: 144267).

AEGON Investment Management UK ltd provides investment management services to AEGON, which provides pooled funds life and pension contracts. 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).

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).

    For further details contact:

    Adrian Cammidge
    t: +44-(0)207-200-2510
    m: +44-(0)7740-897-181
    e: [email protected]

SOURCE AEGON Asset Management