Fund update Aegon UK achieves major milestone with deployment of LTAFs into largest default

Aegon UK has reached a significant milestone in the evolution of its largest default, the £14 billion¹ Universal Balanced Collection (UBC), with the integration of all three Long-Term Asset Funds (LTAFs). This marks the successful delivery of the strategic enhancements announced last year, aimed at driving improved outcomes for over 700,000 members².  

Aegon’s bold move strengthens UBC, targeting increased diversification and stronger risk-adjusted potential returns, aiming to provide members with better value for money and access to innovative private market opportunities, in areas that have historically been out of their reach.

All three custom LTAFs are now live and actively receiving investment. Over the next three years, Aegon will continue a phased expansion of these allocations, targeting a combined LTAF allocation of around 17% by 2028.

As a signatory of the Mansion House Accord, Aegon is committed to investing at least 10% of default fund assets in private markets by 2030. This strategy channels capital into high-impact areas such as renewable energy, sustainable infrastructure and forestry and aims to demonstrate that a credible net-zero pathway can also be a powerful driver of long-term returns. 

UBC also includes fully ESG integrated equity and bond strategies with year-on-year decarbonisation targets; a multi asset credit mandate covering global high yield, asset backed securities and emerging market debt strategies; and a bespoke actively managed global equity solution.  

Lorna Blyth, Managing Director of Investment Proposition at Aegon UK comments on the accomplishment, stating “This is a defining moment, not just for Aegon, but for the future of long-term investing. Together, we’ve turned ambition into action, unlocking private markets for over 700,000 members¹ and setting a new standard for innovation, sustainability and value in workplace pensions. We’re demonstrating what bold, purpose-driven investment can achieve."

UBC is available to investors in Aegon Retirement Choices (ARC), One Retirement (AOR) and our insured Pension fund ranges.  

LTAF’s are a new type of regulated fund that invest in long-term, illiquid assets such as private equity, private credit, real estate or infrastructure.

The value of investments isn't guaranteed and may go down as well as up. Investors may get back less than they invest.