The retirement and investment solutions provider said the three LTAFs will provide exposure to private markets for the 700,000 savers in its largest default fund, the £12bn Universal Balanced Collection (UBC).
Aegon explained the development marked the culmination of a rigorous selection, design and regulatory process – which reflected its determination to improve member outcomes and fulfil its obligations as one of the founding signatories of the 2023 Mansion House Compact.
It said the changes to its default aim to improve risk-adjusted returns, enhance diversification and provide access to investment opportunities in areas that have historically been harder for workplace savers to access.
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The three LTAFs Aegon UK is using in its default fund include a strategy already being run by BlackRock as well as the two newly-approved strategies, which are being run by Aegon Asset Management and JP Morgan Asset Management.
Since October 2024, BlackRock has managed a bespoke, diversified alternative private markets strategy for Aegon UK – an LTAF that includes private equity, private debt, real estate and infrastructure.
From the second half of this year, Aegon AM’s private credit LTAF will provide diversified exposure to a range of its leading private credit strategies, including corporate lending, fund financing, insured credit, renewables and asset backed finance.
Also from the second half of this year, JJPMAM’s bespoke LTAF strategy will offer exposure to private markets such as private equity, infrastructure, transportation and forestry investments.
Independent third-party management company, Carne Group, is acting as the authorised corporate director (ACD) of the two LTAFs.
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Aegon UK managing director of investment proposition Lorna Blyth said: “The success in receiving authorisation for all three LTAF’s marks real progress in offering our workplace pension members access to the best available asset classes, that are in line with our objective to provide better outcomes and value.
“This tangible action is in line with government objectives and will allow members to share in the successes of growth companies, as well as the higher returns expected from other alternative investments.
“Our journey does not end here – next up is our cornerstone investment into the British Growth Partnership, subject to regulatory approval, which will tap into the full commercial potential of world-class breakthrough technology companies based here in the UK.”
Blyth added: “We are committed to maintaining our position as leaders in investment innovation, using our scale to access new asset classes and drive better member outcomes.”
This article originally appeared in Investment Week’s sister title Professional Pensions.
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