In her first Mansion House speech yesterday, the UK’s chancellor of the exchequer Rachel Reeves announced that Aegon UK and NatWest Cushon are committing to work with the British Business Bank on the launch of the British Growth Partnership.
Announced at the International Investment Summit, the British Business Bank will establish the British Growth Partnership, subject to regulatory approval, encouraging more UK pension fund investment into the UK’s fastest growing, most innovative companies.
The initial fund will seek to raise hundreds of millions of pounds, including a commitment from the British Business Bank, to invest in some of the highest potential opportunities in the Bank’s venture capital pipeline.
The chancellor announced last night that Aegon will provide cornerstone investment to the initial fund of the British Growth Partnership.
The investment will form part of Aegon’s largest workplace default, the £12bn Universal Balanced Collection (UBC) fund, which announced plans earlier this year to significantly evolve and incorporate private market investment.
Mike Holliday-Williams, chief executive officer of Aegon UK, said: “In June we announced plans to revolutionise our largest workplace default to include private market investments.
“This partnership with the British Business Bank further demonstrates our cutting-edge capabilities, with the aim of providing workplace savers with access to innovative investment opportunities that have previously been out of reach to DC pensions.”
Lorna Blyth, managing director of investment solutions at Aegon, added that the insurer is on the path to evolving its Universal Balanced Collection fund and turning it into a default fund “fit for the future”.
She said: “These changes build on our recent investment into our first bespoke Long Term Asset Fund and focus on robust risk management and diversification. We believe these changes will offer our members improved outcomes and value for money.”
Blyth added that by partnering with the British Business Bank, Aegon can unlock investment into businesses with high growth potential through the British Growth Partnership, and capture the full commercial potential of “world-class breakthrough technology companies”.
NatWest Cushon has also committed to working with the British Business Bank on the launch of the British Growth Partnership. This is with a view to the Cushon Master Trust making an investment in the initial fund, NatWest Cushon said.
NatWest Cushon has also committed to continued collaboration with the British Business Bank to provide input into the development of further products that access high-quality investment opportunities in UK growth assets.
This intention, it said, is part of its wider strategy to grow its UK private market allocation.
NatWest Cushon believes that unlisted UK assets not only generate investment returns for members, but they can improve member engagement too.
Ben Pollard, CEO of NatWest Cushon, said: “As a signatory to the Mansion House Compact, we see the UK growth agenda as a win-win. By investing in impact-focused sectors and UK high-growth companies, we’re helping secure better outcomes for pension savers and a better future for them and broader society. Initiatives like the British Growth Partnership are critical to giving pension schemes access to these investment opportunities.”
