Aegon has launched an auto-enrolment investment range based around a series of lifestyle funds which will be managed by BlackRock.
The funds are designed to be suitable as scheme default funds, and include three risk-managed funds from Aegon called the Managed Intelligently Workplace Savings funds. The medium-risk version of this fund will be used as the auto-enrolment default fund on Aegon’s platform Aegon Retirement Choices.
In addition to the low, medium and high risk versions of Aegon’s MI Workplace Savings funds, the range includes the Scottish Equitable BlackRock Aquila 50/50 Bond and Equity Index Lifestyle fund, the Scottish Equitable BlackRock Aquila 75/25 Equity and Bond Index Lifestyle fund, the Universal Lifestyle Collection fund, and the Scottish Equitable BlackRock Aquila 50/50 Global Equity Index Lifestyle fund.
The range has been developed using consumer research carried out by Aegon and guidance from the Department for Work and Pensions, Nest, and the National Association of Pension Funds. The research found that most employees are likely to remain invested in the scheme default fund and are daunted by the prospect of investing and of losing money if markets fall.
Aegon UK head of investment marketing Mark Pearson says: “We believe our new auto-enrolment range presents straightforward solutions to meet the pension needs of UK employees, employers and advisers. Via our Arc platform employers and their advisers can choose ‘off-the-shelf’ solutions that are designed to meet a range of risk appetites, either as scheme default or as part of their preferred fund range.”
BlackRock head of UK retail Tony Stenning says: “We are excited to build upon our existing long-term relationship with Aegon and partner with them to develop this next generation investment proposition.
“The three multi-asset funds are well-diversified across asset classes and geographies, providing access to a range of risk profiles. By offering diversified asset exposure and a more stable investment experience, we hope to encourage those saving for retirement to continue to build up their pension pot and feel greater confidence in investing.”