The retail-only fund is to be managed by Kames, a wholly-owned subsidiary of the insurer, and will be available across all of Aegon’s advised propositions. Fund manager and multi-asset expert Vincent McEntegart will run the fund.
Income, which allows for capital growth, could become a key investor requirement, according to Aegon.
“There has been a lot of discussion about the new products that will be introduced off the back of the Government’s reforms and, while we expect new innovation, high income solutions based on a diversified asset mix are likely to prove very popular,” Investment director Nick Dixon said.
The fund will invest in a range of income-producing assets including investment grade and high yield bonds, UK and global equity, listed property, and specialist income investments.
According to fund specifications, up to 30% of the fund can be invested in alternatives. It’s unconstrained by any formal benchmark.
“When it came to annuities, people were interested in the level of income that was being promised to them, not how their money was being invested. We expect this to change as people increasingly access their money through drawdown and take on some investment risk with a view to sustaining their savings,” McEntegar commented.
