Aegon Master Trust

Traditionally known for its presence in the GPP market, Aegon’s acquisition of BlackRock’s DC pension platform in 2016 underlined the provider’s commitment to being a major workplace pension provider. The BlackRock deal brought 350,000 customers and £12bn of assets at the time, and has given Aegon a significant footprint amongst larger schemes it had previously lacked. Aegon was no stranger to master trusts however, having been one of three providers used by Mercer as the administration platform for its master trust offering.

Its contract-based business, the Aegon Master Trust default contains £627m of assets for 16 employers. The master trust default has a relatively high equity exposure in the accumulation phase, with no cash and just 4 per cent in bonds for a saver 30 years from state pension age, although it is early days for performance, with three-year figures not yet available.

Derisking starts 10 years out, and master trust members are offered a combination of education and guidance services including online modellers, paper based communications, presentations in the workplace, delivered face to face or via webex, a helpline and the Aegon Assist guidance service.

Asset Allocation charts

Data as of 31.03.18
SCHEME STRUCTURE
BenchmarkComposite benchmark
Alternatives offered to default14 funds available with a wider choice for advised clients of circa 100 funds
Charging structure for membersAMC bespoke
Charging structures for employersAMC and/or a £ fee, although typically AMC
KEY DATA
Total assets as at 31.3.18£627,104,439.42
Active members in default27,269
% active members in default100%
Employers16
Transfer out to draw income?No
Approach to non-advised drawdownAlready offers it
Does default invest in ESG-screened funds?We may introduce it within the next 2 years
Scheme administratorAegon
Scheme investment adviserKPMG
Asset managers usedBlackRock
PERFORMANCE: INVESTOR 5 YEARS TO SPA
1 Year3 Year5 Year
Annualised returns before costs (%)4.6--
Annualised risk1--
CAPA Index +/--2.69--
PERFORMANCE: INVESTOR 30 YEARS TO SPA
1 Year3 Year5 Year
Annualised returns before costs (%)5.6100100
Annualised risk5.3--
CAPA Index +/--2.97--