We’re making some more changes to our Universal Balanced Collection (UBC). The UBC is available to workplace investors in Aegon Retirement Choices (ARC) and our insured Pension fund ranges. This does not apply to Life fund investors.
Last year, we shared details of phase one of these changes. Following the successful completion of phase one, we’re now moving into phase two of our investment strategy.
Starting on 27 October 2025, we’ll gradually increase investments in private market assets over the next three years, up to a maximum 10% allocation to Long-Term Asset Funds (LTAFs).
More about LTAFs
LTAFs include investments in private markets, such as property, infrastructure, and other complex assets. These investments aren’t traded on public markets and are intended to grow your money over the longer term.
Because of these investments, LTAFs are considered illiquid, meaning they can be harder to sell quickly. This could reduce the overall value of an investor’s holding, as assets may need to be sold quickly or at a discount to their true value.
To manage this risk, we’ve put strict limits on how much of the UBC can be invested in LTAFs and we’ll monitor these limits closely.
While LTAFs aim to grow your investment over time, this growth may take several years. If you choose to take your money out of the UBC early, this may reduce the overall value of your pension savings.
What’s not changing
There will be no change to the:
- Fund objective
- Benchmark
- Aegon fund risk rating
The changes we’re making in phase two
We’re adding three new funds to the UBC:
Aegon CG Multi-Alternatives Growth LTAF fund – investing in a mix of private equity (shares of companies not publicly listed) and real asset strategies (such as real estate).
Aegon CG AM Private Credit LTAF fund – investing in a mix of private credit (loans to companies by non-bank lenders, like investment funds. These loans aren’t traded on public markets and offer businesses flexible ways to borrow money), and other fixed income (such as government and corporate bonds).
Aegon Global Quantitative Equity fund – an actively managed fund investing in global equities (company shares).
These funds are designed to:
- Improve long-term return.
- Increase diversification.
- Help deliver better outcomes for our customers.
There’s no guarantee these funds will meet their objectives and investors may get back less than they originally invest.
What current investors need to do
Existing investors don’t need to do anything, the changes will happen automatically.
Fund asset allocation changes
Here’s how the changes we’re making in phase two change the asset allocation (mix of investment funds) of the UBC:
Fund holdings |
Phase one asset allocation (from September 2024)
|
Phase two target asset allocation (from October 2025)
|
|---|---|---|
Aegon Diversified |
81.0% |
78.0% |
Aegon AAM Multi Asset Credit |
6.9% |
6.0% |
Aegon BlackRock World ESG Insights Equity Fund |
12.1% |
1.0% |
Aegon CG Multi-Alternatives Growth LTAF |
n/a |
5.0% |
Aegon CG AM Private Credit LTAF |
n/a |
4.0% |
Aegon Global Quantitative Equity |
n/a |
6.0% |
Source: Aegon UK October 2025
In line with the fund objective, we reserve the right to add, remove and replace funds within the UBC with the aim of making sure it continues to meet its aims and objectives. The fund objective explains how the fund invests and what it’s trying to achieve for investors.
You can find more information about these funds, including the fund objective, in the fund factsheets on the ‘Fund prices and performance’ page of our website by selecting ‘Other fund ranges’ ‘Aegon Retirement Choices (ARC)’ and searching for the fund name.
Will there be any change to my fund charges?
When we make these changes, there will be a small increase to additional expenses. Additional expenses are on top of the annual management charge (AMC). Together they form part of the ‘Total Charge1’ for pension and life funds, and the ‘Fund Charge2’ for Aegon Retirement Choices (ARC) funds.
1 This includes a standard 1% product charge, a fixed management fee and expenses that vary with the day-to-day costs of running the fund. Expenses can include costs paid by Aegon to third parties. Investors may pay a different product charge, in which case the Total Charge will be different.
2 This is on top of any product or adviser charge and includes a fixed management fee, plus expenses that vary with the day-to-day costs of running the fund. Expenses can include costs paid by Aegon to third parties.
The funds affected
These changes apply to:
Pension
- Universal Balanced Collection
- Universal Lifestyle Collection
- Universal Balanced Collection (Annuity Target)
- Universal Balanced Collection (Flexible Target)
ARC
- Universal Balanced Collection (ARC)
- Universal Lifestyle Collection (ARC)
- Universal Balanced Collection (Annuity Target) (ARC)
- Universal Balanced Collection (Flexible Target) (ARC)
This also includes all lifestyle year variants of these funds. If you’re in a lifestyle fund, you will have a year after the fund name. This number indicates the year you’re set to retire in, and you can find more information about this on our website.
If you need more information
If you’re unsure about the potential impact of these changes, it’s important to speak with a financial adviser. Please note there may be a charge for this advice. If you don’t have a financial adviser, you can find one in your area by visiting moneyhelper.org.uk/choosing-a-financial-adviser, or find out more about advice services supported by Aegon by visiting aegon.co.uk/origen.
Origen Financial Services Ltd is wholly owned by Aegon UK plc but operate independently to us.
If you need additional support
If your personal circumstances mean you need any additional support or if you’d like a large print, Braille or audio version of this document, please visit aegon.co.uk/additionalsupport