Overview
| Initial charge | 5.50% |
|---|---|
| Initial saving | 5.50% |
| Annual charge | 1.50% |
| Annual saving | 0.200% ² |
| Performance charges | No |
| Total Expense Ratio | 1.58% |
| Launch date | 17-04-1989 |
| Launch price | £0.24 |
| Sector | UK All Companies |
| Fund size | £206 million |
| Number of holdings | 89 |
| Fund type | OEIC |
| Type of units | Accumulation |
Please read the Simplified Prospectus in addition to the information above.
Ways to Invest
Find out how to invest in this fundHL Research - Our view on this Fund
It has been a tough period for many ethical funds, and the Aegon Ethical Equity Fund has lagged behind the UK All Companies sector over the last year. Ethical funds exclude virtually all mining stocks, so when this area of the market does well, as it is has recently, they tend to lag behind. This fund has also suffered from its high exposure to insurance companies, which have underperformed the market of late but now look good value.However, stronger performance has started to show through in recent months and the fund has been relatively resilient during the latest market volatility. The manager, Audrey Ryan, has prioritised exposure to companies generating earnings from the US, emerging markets and Asia, because she is more positive that growth can be achieved in these areas. This is a strategy I believe should benefit the fund, especially if Sterling remains weak.
Examples of such holdings include Aggreko, which leases power and temperature control equipment worldwide, as well as Ashtead, which operates the third-largest equipment rental business in the US. Interestingly, Ashtead's US sales have grown to be four times larger than those from the UK, so although it is listed in the UK its US business is now of far more importance to profits. Audrey Ryan has also invested in Millennium & Copthorne, a hotel business with significant exposure to Asia, the US and Australasia.
In contrast, she is more cautious on firms dependent on consumer spending in the UK, which she expects to face difficulties. In light of this she has cut exposure to holdings such as Carpetright and newspaper publisher Trinity Mirror. However, she does feel there are some exceptions and still sees value in pub chain JD Wetherspoon. She also views corporate spending in the UK as being fairly resilient and is comfortable holding businesses exposed to this, for example recruitment firms.
The fund has had a difficult period in relative terms but the global exposure in the portfolio is currently paying off. Audrey Ryan has a good long-term record of stock picking and we feel investors in the fund could benefit from this over the longer term. Please note that the fund invests in smaller companies, and can be concentrated, which can increase the overall risk.
Full research
About the Fund Manager
Audrey Ryan
Located in: Edinburgh
Audrey joined AEGON in January 1997 from General Accident Plc where she was a UK small companies portfolio manager. She qualified as a chartered accountant in 1993 after graduating with a degree in accountancy. She also has an MSc in investment analysis and is a member of ASIP. Audrey manages AEGON 's Ethical Equity Fund and has done so since 1999. She is a sector specialist in several UK small-cap sectors together with the leisure & hotels and electronics & electricals sectors.
Top 10 holdings
| Vodafone Group | 6.27% |
|---|---|
| BG Group | 3.68% |
| Cairn Energy | 3.07% |
| Victrex | 2.69% |
| Tullow Oil | 2.54% |
| Petrofac | 2.47% |
| Informa | 2.11% |
| Euromoney Institutional Investor | 2.10% |
| Domino Printing Sciences | 2.07% |
| Amlin | 2.04% |
Top 10 sectors
| Support Services | 11.89% |
|---|---|
| Oil & Gas Producers | 11.40% |
| Software & Computer Services | 6.89% |
| Financial Services | 6.89% |
| Mobile Telecommunications | 6.27% |
| Life Insurance | 5.45% |
| Travel & Leisure | 5.30% |
| Media | 5.11% |
| Electronic & Electrical Equipment | 4.61% |
| Oil Equipment, Services & Distribution | 2.91% |
Top 10 countries
| United Kingdom | 95.07% |
|---|---|
| Cash and Equiv. | 1.96% |
| India | 0.95% |
| Non-Classified | 0.92% |
| Canada | 0.72% |
| Luxembourg | 0.28% |
| United States | 0.11% |
Some of the data on this page and other related pages is provided to you for your information and is received from the Fund Management Company administering this fund. Hargreaves Lansdown accepts no liability for the reliability or accuracy of the data provided by third parties.
² Annual saving is not available in the SIPP.
³ If you elect to receive the income from a Vantage ISA, Fund or Share Account, we will collect any dividends for you and then pay them directly into your bank account within the first 10 working days of the following month.
Prices as at 02-09-2010. Data as at 31/07/2010.


