Aegon UK Equity Absolute Return to launch with a conservative strategy

Aegon's UK Equity Absolute Return launch will have a conservative investment strategy with a VaR of just 5%.

Managers David Griffiths and David Pringle say the £12m fund will be market-neutral, with a worst case drawdown over a month of one in 100 and a beta of zero. The portfolio is invested into three specific themes including structural growth, best ideas and pair trades. It currently holds 10 pair trades, while short and long positions are evenly balanced at 35 each. The fund will ultimately hold between 50 and 100 stocks and will not exceed 10% net long or short. Griffiths and Pringle will be supported by the 12-strong UK equity team headed by Stephen Adams and will continue the inve...