A robust default investment strategy
Providing a high-quality default strategy is the Trustees' primary priority, recognising that over 90% of those in company pensions will tend to remain in the default option1.
Aegon BlackRock LifePath Flexi is the default for Aegon Master Trust, offering members a retirement solution that is built around their changing needs. It's a target-dated investment strategy that automatically manages a member's savings from their early working life, right through to retirement.
The asset mix is adjusted over time, starting with a focus on growth whilst members are young and gradually moving to assets that help to protect their wealth as they are near and in retirement.
LifePath Flexi incorporates environmental, social and governance (ESG) considerations. As at December 2023, over 90% of assets in the early years and over 40% in the retirement stage incorporate ESG screens.
LifePath Flexi also benefits from a triple layer of governance provided by Aegon Master Trust Trustees, Aegon UK and the BlackRock LifePath investment committee.
The Aegon Master Trust fund range
The Aegon Master Trust fund range includes 28 funds, selected by the trustees and supported by investment adviser Isio. The majority of the funds offered within the range take ESG factors into account, giving members the opportunity to invest in line with their values, which we know from our research is important to many.
Alternative Aegon LifePath options
In addition to Aegon BlackRock LifePath Flexi, the fund range includes two other LifePath strategies, Aegon BlackRock LifePath Retirement, designed for members targeting an annuity purchase and Aegon BlackRock LifePath Capital, designed for those looking to cash in their pension.
This provides alternatives for members who like the idea of a fund that will manage their investments throughout their career, right up to retirement, but would like the option to take their benefits in a different way.
Wider choice
The Aegon Master Trust fund range also gives members access to most major asset classes, providing diversification and choice on a global basis. It offers members a choice of passive and active funds that includes ready-made multi-asset solutions and single asset funds that allow them to build bespoke portfolios.
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 Pensions Regulator. DC Trust Scheme Return Data 2022-2023. Based on 26,990 schemes as at 31 December 2022.