Press release Aegon UK to unlock private markets for 700,000 workplace pension members, as FCA green lights hat-trick of new Long-Term Asset Funds (for trade media only)

For trade media only.

• All three Long-Term Asset Funds (LTAF’s) have now been approved by the Financial Conduct Authority (FCA), keeping Aegon UK on track to deliver private market investments as part of the overhaul of their largest workplace default fund, the £12 billion Universal Balanced Collection (UBC).
• This significant development evidences Aegon UK’s commitment as a founding signatory of the 2023 Mansion House Compact.
• The changes aim to improve risk-adjusted returns, enhance diversification and provide access to innovative investment opportunities, in areas that have historically been harder for workplace savers to access.

Aegon UK, a leading provider of retirement and investment solutions, has passed a major milestone following the FCA’s approval of the final two of the three LTAF’s which will provide exposure to private markets for the 700,000 savers in its largest default fund, the Universal Balanced Collection (UBC).

This development marks the successful culmination of a rigorous selection, design and regulatory process, reflecting Aegon UK’s determination to improve member outcomes and fulfil its obligations as one of the founding signatories of the 2023 Mansion House Compact. This paves the way to enhancing value and outcomes for members invested in UBC through new, innovative investment opportunities, which have previously been out of reach for most workplace pension members:

• Since October 2024, BlackRock has managed a bespoke, diversified alternative private markets strategy for Aegon UK, including private equity, private debt, real estate and infrastructure.
• From H2 2025, Aegon Asset Management’s private credit LTAF will provide diversified exposure to a range of AAM’s leading private credit strategies, including corporate lending, fund financing, insured credit, renewables and asset backed finance.
• Also from H2 2025, J.P. Morgan Asset Management’s bespoke strategy, which leverages the firm’s alternatives platform, will offer exposure to private markets such as through private equity, infrastructure, transportation and forestry investments, completing the UBC’s trio of private market LTAF’s.

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.

Carne Group, Europe’s largest independent third-party management company, are acting as the Authorised Corporate Director (ACD) of the Aegon Asset Management and J.P. Morgan Asset Management LTAF’s.

Lorna Blyth, Managing Director of Investment Proposition at Aegon UK, comments on the accomplishment, stating:

“The success in receiving authorisation for all three LTAF’s marks real progress in offering our workplace pension members access to the best available asset classes, that are in line with our objective to provide better outcomes and value.

“This tangible action is in line with Government objectives and will allow members to share in the successes of growth companies, as well as the higher returns expected from other alternative investments. Our journey doesn’t end here – next up is our cornerstone investment into the British Growth Partnership, subject to regulatory approval, which will tap into the full commercial potential of world-class breakthrough technology companies based here in the UK.

“We are committed to maintaining our position as leaders in investment innovation, using our scale to access new asset classes and drive better member outcomes.”