Aegon UK awards £720m multi-asset credit mandate to asset management arm

Aegon UK has awarded a £720m multi-asset credit mandate to Aegon Asset Manament.

The mandate – which is now live – is run as part of Aegon UK’s largest workplace default, the £12bn Aegon Universal Balanced Collection (UBC) fund, with over 700,000 members.

The initial investment includes defined contribution (DC) assets. Aegon UK expects the brief to grow to over £1bn in the next 12 months.

The plans to “significantly evolve” the UBC fund with enhanced capabilities were announced in June 2024 and Aegon AM was selected to handle the new portfolio, which is managed by Iain Buckle, head of UK fixed income at Aegon AM, and investment manager Alex Pelteshki, using the fixed-income team’s experience across various strategies.

Buckle said: “The mandate provides investors with access to opportunities across credit markets, aiming to maximise returns and to offer downside protection. For the investment grade assets, we take a climate transition approach using our proprietary climate transition research framework to uncover compelling investment opportunities to support the net zero transition.

“We look forward to delivering this bespoke investment solution to Aegon’s members.”

Lorna Blyth, managing director of investment proposition at Aegon UK, added: “We believe this bespoke mandate, combined with our enhanced capabilities in private market investments and advanced ESG integration, will significantly boost the growth potential of the UBC strategy.”

She noted that these enhancements are also set to benefit future Aegon funds that leverage these advanced capabilities.

“The changes are designed to improve diversification, ultimately delivering members improved outcomes and value for money,” she said.

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