The Universal Balanced Collection is a diversified pension default for Aegon Retirement Choices schemes. Designed for long-term saving, it invests across public and private markets, giving members access to a broad range of growth opportunities, including areas traditionally less available to workplace savers.
By using Aegon’s scale, it aims to provide cost-effective access to these opportunities, while blending active, enhanced passive and quantitative investments to help diversify across asset classes, regions and managers. Two glidepath options automatically adjust the investment mix as retirement approaches, helping to prepare savings for retirement. The fund is supported by robust governance, with oversight of the investment strategy, underlying managers, risk and responsible investment considerations.
Key features
Single fund solution
A whole-portfolio in one fund, designed to support long-term growth and to prepare savings as retirement nears.
Diversified
Combines global equities, private markets and multi-asset credit, spreading investments across asset classes, regions and investment managers.
Private markets access
Members gain exposure to investment opportunities that have traditionally been less accessible within workplace pension defaults.
ESG embedded
Environmental, social and governance (ESG) factors are considered as part of investment selection, due diligence and regular oversight.
Fund governance
The investment strategy, underlying managers, performance, risk and responsible investment considerations are subject to governance oversight.
A two-stage investment process
The fund is designed to support members throughout their pension savings journey. In the early years it focuses on long-term capital growth. In the seven years before members retire, the investment mix changes gradually and automatically to prepare members' savings for retirement.
There are two fund options, designed to suit different retirement income preferences:
- Universal Balanced Collection (Flexible Target) - aims to reduce risk as retirement nears, while keeping retirement income options open.
- Universal Balanced Colelction (Annuity Target) - aims to prepare savings for an annuity purchase on retirement.
What the Universal Balanced Collection invests in
Global equities
Global equities are the main source of long-term growth within the strategy. the fund uses a combination of enhanced passive, quantitative and actively managed approaches to provide diversified exposure across global markets while integrating ESG.
Private markets
Through three bespoke long-term asset funds (LTAFs), the fund can invest across private equity, private credit, infrastructure, real estate and forestry, providing access to new opportunities and supporting long-term diversification and portfolio resilience.
Multi-asset credit
Multi-asset credit broadens the range of return opportunities. This part of the strategy can invest across areas such as high-yield bonds, asset-backed securities, emerging market debt, private credit and other alternative fixed income investments.
The mix of investments above will change as investors approach and enter retirement, and additional asset classes may be used.
Access to private markets
Private markets can offer access to long-term growth opportunities, but they can also bring challenges around cost, liquidity, access and governance for workplace pension schemes. The Universal Balanced Collection is designed to address these challenges through a diversified, multi-manager approach, supported by strong governance and oversight of the underlying investments.
Responsible investment
The Universal Balanced Collection incorporates responsible investment considerations as part of its approach to identifying long-term investment risks and opportunities. ESG factors are considered through the management and oversight of the underlying investments for growth stage investments. The strategy can also provide exposure to long-term themes such as renewable energy and forestry. The fund sit within our wider responsible investment framework, including our climate commitments for the pension default fund range.
Important information
The value of an investment can fall as well as rise and isn't guaranteed. Members may get back less than they invest. There's no guarantee that the fund’s objective will be met. Please view fund factsheets for full fund details and fund-specific risks. We may change the strategy where we believe this is in members’ interests.
Private market investments can carry additional risks. They may be more difficult to value or sell than investments traded on public markets, and may be intended to be held for longer periods.
Changes to the investment mix may reduce the growth potenial of the funds as retirement nears. The annuity target fund is only likely to be suitable for those who plan to buy an annuity.
ESG considerations don't apply to the full fund as retirement nears, or in retirment.