Aegon Master Trust makes sustainability a priority in fund redesign

by | Apr 27, 2023

Aegon Master Trust makes sustainability a priority in fund redesign

  • Aegon Master Trust (AMT) has made important changes to its entire fund range to further integrate sustainability considerations and bridge the saver ‘intent vs action gap’, previously identified research which highlights the mismatch between intent and action in pension savings
  • Self-selection of funds now easier with use of simple white label fund names and a more consistent approach to fund objectives
  • No further changes to the flagship default fund, LifePath Flexi, which already invests 80% of its assets in environmental, social and governance (ESG) screened indices during the growth stage

Aegon has made important changes to the range of funds available for Aegon Master Trust (AMT) workplace pensions, which has £4bn in assets under management1. This redesign provides scheme members access to more investment choice globally and further integrates environmental, social and governance (ESG) considerations into the AMT investment options.

The enhanced fund range includes 16 new funds, bringing the overall total to 28. This includes 26 funds that have various levels of environmental, social and governance (ESG) considerations embedded into their design – several of which focus more directly on sustainable investing and addressing climate issues.

The range also caters for members that wish to diversify across asset classes, providing access to a wider choice of investments. More regions for equity investment are available, offering diversification and choice on a global scale. The entire fund range has also been white labelled, with fund names simplified to help make investment selection easier.

Intent vs action gap

 The AMT fund update follows research conducted among 10,000 people by Aegon2 which identified a mismatch between intent and action in pension savings. 57% said they wanted to invest some of their savings sustainably, but only 31% actually do so. Significantly, half of savers (50%) don’t know where they are invested and nearly a third (32%) don’t know where they should invest, suggesting that a lack of investment knowledge and confidence may be a factor in this ‘intent vs action gap’.

Tim Orton, Chief Investment Officer at Aegon UK comments:

“This is a major development for the Aegon Master Trust, evidencing Aegon’s commitment to meeting customer demand. From both an investment and sustainability point of view, these changes radically improve the choice and ease of selection for those looking beyond their AMT scheme’s default option.

“The research we conducted shows many investors remain in their employer’s default fund and don’t make active investment decisions, but do have strong views on issues of sustainability or social justice. We’ve taken this feedback on board and updated the AMT offering to reflect the ever-evolving needs of our customers. This updated range demonstrates our strength in the workplace market and allows our members a much easier way to access a suite of globally diversified sustainable funds.”

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