A default strategy to suit your client’s workforce
The trustees’ first priority is to provide a default strategy that remains fit for an evolving workforce, recognising that over 95%1 of those in defined-contribution (DC) schemes will remain in this. That’s why they’ve selected Aegon BlackRock LifePath Flexi as the default for our Master Trust.
Aegon Blackrock LifePath Flexi is a target-dated strategy that benefits from three layers of expert oversight ─ from BlackRock, Aegon and the Investment sub-committee of the trustee board, supported by independent investments advisers, Isio.
Options beyond the default
The trustees work with your clients to encourage member engagement with their investment choices – offering a range of single and multi-asset funds beyond the default. This makes it possible for your members to create their own investment strategies.
In addition to the Aegon BlackRock LifePath Flexi, there are two other LifePath strategies. One targets annuity purchase, the other targets cash lump sum. This offers alternatives for members who like the idea of a fund that manages their investments throughout their career, right up to retirement, but think they’ll take their benefits in a different way.
LifePath is a target-dated strategy, managed by BlackRock. BlackRock launched the world’s first target-dated fund in the US in 1993, introducing it in the UK in 1997. It now looks after over £287.4 billion in target-dated funds on behalf of clients worldwide.2
The LifePath strategies have also grown to be one of the largest default strategies in the UK, with
over £10 billion invested across a diverse mix of UK DC schemes.2
There’s no guarantee the funds will meet their objectives. The value of investments and any income taken, can fall as well as rise and isn’t guaranteed. The final value of a member’s pension pot when they come to take benefits may be less than has been paid in.
¹ The Pensions Regulator. DC trust: scheme return data 2022 – 2023.
2 BlackRock LifePath UK Overview Q4 – as at end December 2022.