Aegon UK is including a more significant allocation to private markets within its second largest workplace default, the Aegon LifePath strategy.
This default strategy is used by more than 375,000 pension savers and has £12bn AUM. From the summer of 2026 it will invest in a broader range of asset classes, including global private markets, protected equites and multi-asset credit.
These private market investments will be accessed through three Long-Term Asset Funds (LTAFs), managed by Aegon Asset Management, BlackRock and JP Morgan Asset Management. Overall Aegon is targeting a 20 per cent exposure to private markets during the growth stage and an 8 per cent allocation at retirement.
These enhancements help align this with Aegon’s £14bn Universal Balance Collection (UBC) default strategy, with both portfolios using a common investment strategy.
Aegon UK is a founding signatory to the Mansion House Compact and a member of Sterling 20, a group looking to boost investment into UK private market opportunities.
Aegon managing director – investment proposition, Lorna Blyth says: “Back in 2024, we created the blueprint for integrating private markets into existing workplace default funds. We are now taking the next step towards offering improved long-term growth potential and portfolio resilience for pension savers, while further aligning our £14bin Universal Balanced Collection and £12 billion Aegon LifePath strategies.”
Graeme Griffiths, trustee and chair of the Aegon Master Trust Investment Committee adds: “As the retirement landscape continues to evolve, our collaboration with Aegon UK has resulted in the creation of Aegon LifePath, a default fund that is both robust and adaptable.
“We believe the further changes to the fund – to include private market investments – offer the potential to deliver strong growth to our members over their working lives and beyond and to provide improved resilience during volatile markets.
“The planned changes to our default fund mean every member invested in Aegon LifePath can benefit further from a strategy that has been carefully designed to meet their future needs.”
