The range includes a selection of funds that take environmental, social and governance (ESG) factors into account, which we know from our research is important to members.1
A sustainable default investment strategy
The trustees’ first priority is to provide a default strategy that remains fit for an evolving workforce, recognising that over 95% of people in defined-contribution (DC) schemes will remain in the default.2 That’s why the trustees selected Aegon BlackRock LifePath Flexi as the default for our Master Trust. It’s a target-dated strategy that benefits from three layers of expert oversight ─ from BlackRock, Aegon and the Investment sub-committee of the trustee board, supported by independent investments advisers, Isio.
Beyond the default
The trustees will work with you to encourage your members to engage with their investment choices ─ offering a range of single and multi-asset funds beyond the default, which allows them to create their own investment strategies.
In addition to the Aegon BlackRock LifePath Flexi, there are two other LifePath strategies. One targets annuity purchase and the other targets cash lump sum. 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 think they’ll take their benefits in a different way.
What are 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, to help deliver the retirement outcome they’re targeting. Members will be put into a fund that includes the year they’re retiring in. So, for example, someone retiring in 2074 would be put into the 2073 to 2075 version of the fund.
Find out more about LifePath strategies.
BlackRock’s responsible investment credentials
BlackRock, like Aegon, has committed to supporting the goal of net zero greenhouse gas emissions
by 2050 or sooner. It’s an active steward of the funds it manages and a member of the Net Zero Asset Managers Initiative.
BlackRock has invested significantly in its 70-strong investment stewardship team. Their team engages with companies on effective corporate governance, and how companies are managing material sustainability-related risks and opportunities. It has $509 billion in assets under management (as at December 2022) in dedicated sustainable strategies.3
The Aegon Master Trust fund range
The Aegon Master Trust (AMT) fund range is a curated range of funds, selected by the trustees, and supported by independent investments advisers, Isio. 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, while recognising the increasing desire for more sustainable investments.
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 How you can improve your financial wellbeing. Data source, Aegon, Financial Wellbeing research carried out in August – September 2021, 10,021 respondents. Flipbook updated April 2022.
2 Source: The Pensions Regulator. DC trust: scheme return data 2022 – 2023.
3 BlackRock Sustainable Investing, global statistics as of December 2022. All values in $USD. Comprised of uplift, thematic, impact strategies and selected priority screened products.