Aegon UK has announced today that it will be a founding signatory of the Mansion House Compact agreement.
The Compact is a voluntary, industry-led expression of intent to take meaningful action to secure better outcomes for UK pension savers through increased investment in unlisted equities.
In line with the Compact’s intention, Aegon is committing to increasing the proportion of the pension assets it manages for clients which are invested in unlisted equities. The target is to allocate at least 5% of defined contribution (DC) default funds to unlisted equities by 2030, importantly in a way that is consistent with acting in the best interests of our pension scheme members.
The UK government is progressing a range of initiatives to increase the allocation of defined contribution pension funds to private equity and other illiquid investments. These aim to improve member outcomes while also supporting innovative companies seeking growth capital.
Tim Orton, Chief Investment Officer at Aegon UK, said: “Aegon UK is proud to be a founder signatory of the Mansion House Compact which will help deliver better long-term outcomes for our pension scheme customers.
“Trustees and managers of DC schemes are under a duty to act in the best interests of their scheme members. As part of this, they should consider a wide range of investments, including private equity, for the benefit of the members. This is particularly true of scheme default funds where most members remain invested, leaving investment decisions to the trustees or manager.
“We are committed to ensuring our customers can access and share in the growth and success of innovative companies we invest in as part of diversified portfolios. We will use our scale and expertise to develop investment solutions seeking to improve the retirement outcomes of the millions of members of the defined contribution pension schemes we support.
“The Compact will also create opportunities that help deliver £500 million assets under management target set for investments in climate solutions within its default funds by 2026 and as we progress towards net zero.”