The UK’s largest asset manager, London-based L&G has announced that its Lifetime Advantage Funds have reached £25bn in assets under management, meeting the UK Government’s requirement for all DC multi-employer schemes to run a main default fund with at least £25 billion in assets by 2030, as outlined in the 2026 Pensions Schemes Bill.
Launched in 2024, the L&G Lifetime Advantage Funds (“LAF”) are a ‘to and through retirement’ target date fund range, offering L&G’s 5.8m DC members extended access to a diverse selection of growth assets, including a range of private market assets. It was set as L&G’s core default strategy for contract-based DC clients in 2025.
Evidence from comparable pension systems such as Australia and Canada suggests that this size enables pension funds to invest in large infrastructure projects and private businesses, boosting the economy while potentially driving higher returns for savers.
Alongside today’s milestone, LAF has also surpassed a 10% allocation to private markets, meeting one of the commitments contained in the Mansion House Accord, a voluntary, industry-led agreement of which L&G was a founding signatory. LAF targets a 100% exposure to growth assets up until 10 years before retirement, including allocating 15% to the L&G Private Markets Access Fund (“PMAF”).
The milestones demonstrate continued momentum in the growth of both LAF and PMAF, underscoring strong client demand for L&G’s innovative investment solutions. Since launching in 2024, PMAF has reached £3bn in assets under management, and has already reinvested £2.6bn into society.
Lesley-Ann Morgan, Global Head of DC, L&G, said: “The Lifetime Advantage Funds surpassing £25 billion in assets in just two years is a testament to the trust our clients place in us, the strength of our investment solutions and our retirement proposition. At the same time, our progress in private markets demonstrates how we are delivering on our commitment to improved retirement outcomes for our DC members while helping support the UK economy. L&G has long believed in the value a diversified pension portfolio with private markets can provide to people saving for their retirement, and I’m delighted to see how we’ve built on our early adoption of this approach.”
