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Aegon AM launches property fund for UK DC market

real estate investment, defined contributionAegon Asset Management and Mobius Life have launched a version of their Active Beta Property Fund aimed at UK defined contribution (DC) pension schemes, a pensions sector said to find difficulties with accessing the asset class.

Called the Aegon Active Beta DC Property Fund Aegon said it had seed funding from a “major UK pension plan”.

The fund was originally launched in 2017 and introduced “quasi-passive” property investment to UK defined benefit pension schemes.

Investment consultants and DC platforms asked the firm to develop a version which would meet the liquidity requirements of DC pensions market, which led to the development of the new vehicle.

Tony Yu, manager of the fund, said: “Just one-third of DC pension schemes invest in commercial property, compared to two-thirds of DB schemes. Challenges around liquidity, fund switching costs and portfolio diversification have hindered higher allocations to commercial property from DC schemes.”

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