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
- 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.
The LifePath strategies
LifePath is a target-dated investment strategy that automatically manages a member’s savings from their early working life, right through to retirement.
It aims to make sure they’re invested appropriately at all stages of their working life and deliver the retirement outcome they’re targeting.
Members will be put into a fund that includes the year they’re retiring in. For example, someone retiring in 2074 would be put into the 2073 to 2075 version of the fund.
Find out more about the LifePath strategies
Why LifePath?
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 worldwide2.
The LifePath strategies have also grown to be one of the largest default strategies in the UK, with over £9.6 billion invested across a diverse mix of UK DC schemes2.
The Aegon Master Trust fund range
The Aegon Master Trust (AMT) fund range is chosen by the trustees in conjunction with investment adviser, Isio. The range includes funds that provide access to every major asset class including regions for equity (company shares) investment, providing diversification and choice on a global basis. Or you may find it easier to invest in one of our multi-asset funds – they invest in a ready-made mix of asset classes.
The funds offered within the Aegon Master Trust fund range have various levels of ESG considerations included in their design. For example, using exclusions to screen out investments that are particularly harmful to the environment and/or society. The range also includes several specialised funds, which focus more directly on sustainable investing and addressing climate issues, allowing you to build a portfolio that fits with your investment goals and your values.
Find out more about our AMT fund range
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.
¹Source: The Pensions Regulator. DC trust: scheme return data 2022 – 2023.
2Source: BlackRock LifePath UK Overview Q4 – as at end December 2022.