Edinburgh-based Aegon Asset Management said its Multi-Asset Credit mandate is now live, with an initial investment of £720 million from Aegon UK.
The Multi-Asset Credit mandate is managed by Iain Buckle, Head of UK Fixed Income at Aegon AM, and investment manager Alex Pelteshki, utilising the expertise of the firm’s fixed income team across the breadth of its fixed income strategies.
The mandate is run as part of Aegon UK’s largest workplace default, the £12 billion Aegon Universal Balanced Collection (UBC) fund, with over 700,000 members.
Aegon UK said the mandate is set to grow to over £1 billion in the next 12 months.
Aegon Asset Management is an active global investor. Its team of 385 investment professionals manage and advise on assets of £270 billion.
In June 2024, Aegon UK announced plans to significantly evolve its UBC fund with enhanced capabilities.
Aegon AM was selected to manage the new Multi-Asset Credit mandate, which provides access to Aegon Asset Management’s award-winning Global High Yield, Asset Backed Securities, Investment Grade and Emerging Market Debt solutions.
Buckle said: “The mandate provides investors with access to opportunities across credit markets, aiming to maximise returns and to offer downside protection.
“For the investment grade assets, we take a climate transition approach using our proprietary climate transition research framework to uncover compelling investment opportunities to support the net zero transition. We look forward to delivering this bespoke investment solution to Aegon’s members.”
Lorna Blyth, Managing Director – Investment Proposition at Aegon UK, said: “We believe this bespoke mandate, combined with our enhanced capabilities in private market investments and advanced environmental, social, and governance (ESG) integration, will significantly boost the growth potential of the UBC strategy.
“These enhancements are also set to benefit future Aegon funds that leverage these advanced capabilities. The changes are designed to improve diversification, ultimately delivering our members improved outcomes and value for money.”
The Aegon UBC fund is available to Aegon Retirement Choices and One Retirement investors as well as some off-platform products.