Aegon UK has announced plans to increase its allocation to private markets, including multi-asset credit, extending its approach to its second-largest workplace default fund.
The defined contribution (DC) pension provider said its Aegon LifePath fund, which has £12bn of assets under management, will now invest in diversified global private markets, protected equities and multi-asset credit. The allocation will target 20 per cent in the growth stage and eight per cent at retirement.
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Aegon UK said the private market investments will be accessed through three Long-Term Asset Funds (LTAFs), managed by Aegon Asset Management, BlackRock and JP Morgan Asset Management.
This builds on Aegon’s integration of private markets into its largest workplace default fund, the £14bn Universal Balanced Collection (UBC), announced in 2024. The move followed Aegon being a founding signatory of the 2023 Mansion House Compact, a commitment to allocate a minimum of five per cent of UK DC funds to unlisted equities by 2030.
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“Back in 2024, we created the blueprint for integrating private markets into existing workplace default funds,” said Lorna Blyth, managing director, investment proposition at Aegon UK. “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 UBC and £12bn Aegon LifePath strategies.”
Aegon UK is also a member of the Sterling 20, an investor-led partnership between 20 of the UK’s largest pension funds and insurers to invest the country’s savings into infrastructure and businesses in sectors such as artificial intelligence and fintech.
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