London-based insurer and asset manager Legal & General has positioned itself at the forefront of the UK’s drive towards larger defined contribution (DC) pension funds after its Lifetime Advantage Funds surpassed £25bn (€29.7bn) in assets under management.
The group said the milestone meant the fund range had already reached the scale envisaged under the UK government’s consolidation agenda, set out in the 2026 Pensions Schemes Bill, which calls for all DC multi-employer schemes to operate a main default fund with at least £25bn in assets by 2030.
Launched in 2024, the Lifetime Advantage Funds are a “to and through retirement” target-date fund range and became L&G’s core default strategy for contract-based DC clients in 2025.
The fund range also surpassed a 10% allocation to private markets, according to the firm, meeting one of the commitments contained within the Mansion House Accord, the industry-led agreement designed to encourage greater investment by pension schemes into private assets.
L&G said the strategy targets full exposure to growth assets until 10 years before retirement, including a 15% allocation to its Private Markets Access Fund (PMAF).
The insurer said the development demonstrated growing momentum behind both the Lifetime Advantage Funds and PMAF, reflecting demand from pension clients for diversified investment strategies incorporating private markets exposure.
PMAF, launched in 2024, has itself reached £3bn in assets under management. L&G added that the vehicle had already “reinvested” £2.6bn into sectors including housing, renewable energy and infrastructure.
The firm linked the growth of the strategy to wider international pension trends, arguing that larger pension funds were better positioned to access infrastructure projects and private businesses while potentially improving retirement outcomes for members.
L&G said its total default fund assets now exceed £60bn, including £35bn invested across its wider target-date fund offering.
Lesley-Ann Morgan, global head of DC at L&G, said: “The Lifetime Advantage Funds surpassing £25bn in assets in just two years is a testament to the trust our clients place in us, the strength of our investment solutions and our retirement proposition.”
She added: “At the same time, our progress in private markets demonstrates how we are delivering on our commitment to improved retirement outcomes for our DC members while helping support the UK economy.”
Morgan said L&G had “long believed in the value a diversified pension portfolio with private markets can provide to people saving for their retirement”.
