Corporate news Aegon UK: Enhancing member outcomes through private asset investments at the heart of Mansion House Accord

• Aegon UK remains committed to improved member outcomes through increased investment in private assets, while supporting the Government’s growth agenda.
• Urges the Government to adopt a pragmatic approach to these and other reforms with realistic timeframes, collaborating with more organisations to facilitate access to a steady supply of high-quality UK private asset investment opportunities.

Aegon UK has announced its participation as a signatory to the Mansion House Accord, reinforcing its commitments as a founding signatory of the Mansion House Compact which was established in July 2023.

The Accord is a voluntary, industry-led expression of intent to allocate a minimum of 10% of frontline default investments to private assets by 2030, with at least 5% of the total specifically invested in UK private assets. This ambition is subject to fiduciary duties while striving for better member outcomes.

By committing to the Accord, Aegon UK builds on its foundational support for the Mansion House Compact, underscoring its dedication to improving member outcomes through investing in a broader range of private assets previously not accessible to DC pension savers. This includes a focus on UK investments, aligning with the Government's ambitious growth agenda.

Signing the Accord aligns with and solidifies the strategic partnership with the British Business Bank, reaffirming Aegon UK’s intention to provide the cornerstone investment in the British Growth Partnership Fund I which will provide access to UK private assets. This follows Aegon UK’s decision to incorporate private assets within its largest workplace default fund, the Universal Balanced Collection (UBC), housed in three Long Term Asset Funds (LTAF)¹.

The Accord marks a strategic alignment between industry intentions and governmental aims. It comes at a time of transformative changes in the UK’s defined contribution (DC) pension landscape, with the conclusions of the Pensions Investment Review expected imminently and further fundamental changes expected in the Pension Schemes Bill later this Spring.

Lorna Blyth, Managing Director – Investment Proposition at Aegon UK, said:

"Aegon UK is proud to be a signatory of the Mansion House Accord, which aligns with our aim to deliver better long-term outcomes for our pension scheme members.

“We are committed to ensuring our customers can access and share in the potential growth and success of new, innovative companies as part of diversified portfolios. Leveraging our partnership with the British Business Bank, along with our scale and expertise, we are dedicated to developing investment solutions that improve the retirement outcomes of the millions of members of the defined contribution pension schemes we support. We’ve made significant progress in becoming a DC provider fit for the future – but our journey doesn’t end here.

“The Accord is a key element of the Government’s growth agenda, alongside other initiatives likely to transform the UK’s DC pensions market. It comes as the conclusions of the Pensions Investment Review are expected imminently and further fundamental changes are expected in the Pension Schemes Bill later this spring. This makes it essential that the Government adopts a pragmatic approach to implementation. Realistic timeframes and a steady supply of high-quality UK investment opportunities across all private asset classes are crucial for ensuring success. This includes collaborating with more organisations such as the British Business Bank to provide access to diverse types of private assets – from private equity to infrastructure, which are all vital for optimising member benefits and developing investment portfolios designed for long term growth.”