Aegon to launch trio of LTAFs

Aegon has received regulatory approval to launch three long-term asset funds (LTAFs).

The three funds will provide exposure to private markets for the 700,000 savers in the firm’s largest default fund, the Universal Balanced Collection.

Last month, Aegon announced that its first LTAF – the CG Aegon AM Private Credit LTAF – had been granted regulatory approval by the Financial Conduct Authority (FCA). The FCA has now greenlit another two LTAFs.

From the second half of this year, Aegon’s clients will have access to Aegon Asset Management’s private credit LTAF, which invests in corporate lending, fund financing, insured credit, renewables and asset-backed finance.

The other LTAF will also be available later this year. It will follow JP Morgan Asset Management’s bespoke strategy, which leverages the firm’s alternatives platform and offers exposure to private markets through private equity, infrastructure, transportation and forestry investments.

“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,” said Lorna Blyth, managing director of investment proposition at Aegon UK.

“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 doesn’t 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.

“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.”