Aegon Asset Management is set to close its £130m UK Sustainable Opportunities fund, citing weaker-than-anticipated growth since the fund’s launch.
Shareholders were notified in December of Aegon’s intention to close the Aegon UK Sustainable Opportunities fund on 31 January 2025.
A spokesperson at Aegon told PA Future: “Since the fund launched, its size has not grown as anticipated. Having reviewed the funds’ prospects, and after considering other strategies/solutions, we are of the view it is in the best interest of investors to close the fund.”
According to data from FE fundinfo, Aegon UK Sustainable Opportunities performed broadly in line with its average peer in the IA UK All Companies sector since its inception. From March 2007, the fund returned 136.7%, compared to its sector average’s gain of 138.8%.
However, performance appears more challenged over shorter time horizons, with the fund residing in the bottom quartile relative to its sector average over three, five and 10 years. Over three years, the fund lost 10.9% in total return terms, compared to the IA UK All Companies sector average’s return of 4.9%. This ranks the fund in 184th place within the 219-strong sector.
Over the three years to the end of November 2024, Aegon UK Sustainable Opportunities assets under management have fallen by 19.3%, from £161 to £129.9m..
The latest fact sheet – issued in November 2024 – states the fund aimed to provide a combination of income and capital growth over any seven-year period.
Nearly 40% of the fund’s weighting was allocated to industrials and financials, the factsheet shows, with top holdings including Astrazeneca, RELX Group, National Grid, the London Stock Exchange Group and NatWest.
Co-fund manager, Audrey Ryan (pictured), will continue in her role as manager of the Aegon Ethical Equity fund, and, on the future of co-fund manager, Sajeer Ahmed, Aegon added he would not be leaving the firm: “Sajeer is the manager of the Aegon UK Smaller Companies fund. He also contributes to idea generation and analysis for other portfolios, with a focus on UK small and mid-cap stocks, so he remains an important member of Aegon AM’s global equities team.”