Aegon has revamped its fund range, to improve the sustainability credentials of its master trust.
While these changes do not affects it default fund — the LifePath Flexi —it will mean there is more of a focus on EGS considerations within its range of self-select funds.
Aegon Master Trust (AMT) has more than £4bn of assets under management and this redesign gives members more investment choice, particularly of funds which focus more directly on sustainable investing and climate issues.
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.
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.
Aegon says this change should help bridge the saver ‘intent vs action’ gap’. This was identified in previous research which found that 57 per cent of savers said they wanted to invest some of their savings sustainably, but only 31 per cent actually do so.
Aegon chief investment officer Tim Orton says: “From both an investment and sustainability point of view, these changes 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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