Aegon UK now has £1bn in its long-term asset funds (LTAFs), within its largest workplace default strategy.
The pension provider has integrated three LTAFs into workplace default, the Universal Balanced Collection (UBC), used by its group personal pension plans (GPPs). These LTAFs are designed to access private market assets, although will also hold listed assets to aid with liquidity.
Aegon says that achieving this milestone marks a major step forward when it comes to offering enhanced diversification and improved risk-adjusted return potential for members.
In total over 700,000 members will gain access to innovative private market investments as a result of this integration. This includes investments into renewable energy, sustainable infrastructure and forestry.
Aegon says this aligns with its commitment to the Mansion House Accord, aiming to invest at least 10 per cent of default fund assets in private markets by 2030, its a focus on sustainability and long-term growth.
Aegon UK managing director of investment proposition, Lorna Blyth says: “Together, we’ve turned ambition into action, unlocking private markets for over 700,000 members and setting a new standard for innovation, sustainability and value in workplace pensions.
“The next step is to deploy the LTAFs into our other workplace default, comfortably helping Aegon Master Trust to pass the £25bn threshold for DC schemes.”
Aegon says looking to have 17 per cent of its UBC default in LTAFs by 2028. Aegon UK has partnered with three leading fund managers to provide tailored private markets LTAF solutions.
BlackRock offers a bespoke, diversified alternative private markets strategy for Aegon UK, which includes investments into private equity, private debt, real estate and infrastructure.
Aegon Asset Management runs a private credit LTAF, which includes allocation to corporate lending, fund financing, insured credit, renewables and asset backed finance. Meanwhile JP Morgan Asset Management is running a bespoke strategy that leverages the firm’s alternatives platform. This offers exposure to private equity, infrastructure, transportation and forestry investments.
The Universal Balanced Collection is available to Aegon Retirement Choices (ARC) and One Retirement investors, as well as some off-platform products.
