Aegon UK is set to extend its private markets approach into its second-largest workplace default fund, the £12bn (€13.7bn) Aegon LifePath.
Aegon joined the Mansion House Compact in July 2023 as one of the founding signatories, committing to allocating at least 5% of its default funds to unlisted equities by 2030.
In October, it joined a group of 20 pension providers and insurers backing a regional growth drive, known as Sterling 20.
As part of its roadmap to align the strategies across the two largest workplace default funds – the Universal Balanced Collection (UBC) and Aegon LifePath – the provider confirmed that from Summer 2026, Aegon LifePath will invest across a broader range of asset classes, including diversified global private markets, protected equities and multi-asset credit.
The private market investments will be accessed through three Long-Term Asset Funds (LTAFs), managed by specially selected fund managers – Aegon Asset Management, BlackRock and JPMorgan Asset Management – targeting a 20% allocation in the growth stage and an 8% allocation at retirement.
These improvements build on the successful, ongoing integration of private markets within Aegon UK’s £14bn UBC default fund.
Last month, Aegon UK confirmed that UBC now holds over £1bn in LTAFs, including private markets.
At the time, it claimed to be the first defined contribution (DC) provider to integrate three LTAFs into a workplace solution, marking a “major step forward in DC workplace pension innovation”.
Lorna Blyth, managing director of investment proposition at Aegon UK, said: “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 £14bn Universal Balanced Collection and £12bn Aegon LifePath strategies.”
Graeme Griffiths, trustee and chair of the Aegon Master Trust investment committee, added: “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.”
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