Aegon UK’s largest workplace default fund, the £12bn (€13.6bn) Universal Balanced Collection (UBC), now holds over £1bn in Long-Term Asset Funds (LTAF), including private markets, benefitting more than 700,000 members.
The provider claims 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”.
The move aligns with Aegon UK’s commitment to the Mansion House Accord, aiming to invest at least 10% of default fund assets in private markets by 2030, focusing on sustainability and long-term growth.
Aegon confirmed that plans are in place to increase LTAF allocations within its default fund, aiming for a combined 17% target allocation by 2028, through its partnership with BlackRock, Aegon Asset Management and JPMorgan Asset Management.
Lorna Blyth, managing director of investment proposition at Aegon UK, said: “This is a defining moment, not just for Aegon UK, but for the future of long-term investing.
“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.”
Blyth said the next step is to deploy the LTAFs into our other workplace default, helping Aegon Master Trust to pass the £25bn assets under management (AUM) threshold for DC schemes, which is required by 2030 under the UK government’s master trust consolidation plans.
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