Zarah ChoudharyAegon has secured regulatory approval for the final two of three long-term asset funds (LTAFs) set to be introduced to its largest default pension fund, opening up access to private markets for around 700,000 workplace savers.
The milestone followed confirmation from the Financial Conduct Authority (FCA) and marked the conclusion of a lengthy design and approval process aimed at enhancing investment outcomes for members of the Universal Balanced Collection.
The LTAFs form part of Aegon UK’s wider strategy to improve long-term returns through exposure to assets such as private equity, private debt, infrastructure and real estate – investments that have historically been inaccessible to most members of workplace pension schemes.
Since October 2024, BlackRock has managed an alternative private markets strategy for Aegon UK, covering a range of assets including private equity, private debt, real estate and infrastructure.
From the second half of 2025, Aegon Asset Management will launch a private credit LTAF offering diversified access to corporate lending, fund financing, insured credit, renewables and asset-backed finance.
Also, from the second half of 2025, J.P. Morgan Asset Management will introduce a strategy drawing on its alternatives platform to provide exposure to private equity, infrastructure, transportation and forestry.
Lorna Blyth, managing director of investment proposition at Aegon UK, said: “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.”
