Innovating today for better financial futures tomorrow

As the largest mutual life pensions and investments company in the UK* we have significant scale, strength and depth across our investment solutions. This paired with a desire to continually improve outcomes for our members means there is always lots to do and to talk about.

For instance, there is a commitment within our workplace business alone to invest one hundred million pounds over the next three years, to build out our proposition further. The continued evolution of our workplace investment solutions is a strategic part of this investment.

New regulatory requirements on the horizon - such as those within the Pensions Bill, and the more recent Value for Money consultation, not to mention Mansion House aspirations, mean significant thinking needs to be done around the future direction and shape of workplace investment options.

Align this to the volatile geopolitical and economic backdrop, and it’s arguably never been more important to have a clear sense of identity, purpose and direction to ensure we continue to provide good outcomes for employers, advisers and our members.

Looking back to 2025, we have demonstrated significant evolution of our investment solutions.

Our £84bn multi asset Governed Range continues to offer a mix of assets beyond traditional equity and bonds – including direct real estate and commodities – which has been of significant benefit through 2025 and the early stages of 2026. We also continued to improve our asset mix including an initial holding in asset-backed securities, and approving in principle investments in Infrastructure.

In our workplace default we aimed to improve long-term returns by increasing the risk level and exposure to growth assets.

And our ongoing governance, supported by the Investment Advisory Committee, also saw improvements to our Investment Pathways, and fund launches that completed the range of sustainable funds available in our unit linked products.

As we look into 2026 and beyond, we aim to maintain momentum.

One of our strategic areas of focus is our workplace accumulation and decumulation solutions. The evolving regulatory environment and a continuing desire to ensure good outcomes for customers, advisers and employers means we are thinking hard about these solutions and what further improvements should be made.

In the retirement income space, we are also looking at what can be done to enhance our already strong position. With over £10bn invested in our Governed Retirement Income Portfolios (or GRIPs), they are one of the most successful retirement specific multi asset solutions in the market. Through close collaboration with advisers, we aim to ensure these solutions continue to support evolving adviser needs and processes over the long term.

And across our wider multi asset Governed Range we will continue to review the strategic asset allocations. As they are updated I’d expect you to see steps being taken to invest further in private assets - where we see long-term value for our customers.

Beyond the key strategic focus areas, there will be our regular governance reviews of all investment solutions. These will consider our Self Select range, bespoke adviser defaults, and the wider lifestyle strategy glidepaths.

All of this forms a picture of a modern mutual, with a compelling strategic roadmap and a history of delivery.

^{*Source: based on total 2022 premium income. ICMIF Global 500, 2024.}

DC pensions have never mattered more than they do today. For millions of people across the UK, their defined contribution pension isn't just part of their retirement plan, it is their retirement plan. There's less reliance on DB, less certainty around state provision, and far more responsibility resting on how DC pots are invested over the decades ahead. 

Against that backdrop, the role of a default fund has fundamentally changed. It's no longer simply about being low cost. It's about delivering resilient, long-term outcomes with the ability to adapt to the ever-changing customer needs and behaviours. 

At Royal London, we are in a strong position to respond to the challenges ahead. We now manage over £27 billion within our workplace default investment. Now, that scale really matters. It allows us to be meaningful participant in markets to access a broader opportunity set and to invest with a genuinely long-term horizon on behalf of our members.

But scale is only part of the solution. As a mutual, everything we do is anchored and acting in our customers’ best interests. That means being thoughtful about how we evolve our default, being clear about why we're making changes and making sure members are taking on the journey with us. Since launching in 2009, the Governed Range, which is the foundation of our workplace default, has been built on a clear commitment to evolution. 

Our investment strategy has been refined over many years in response to changing markets and members' needs, ultimately positioning us strongly to continue adapting our default to support workplace customers in an ever-changing environment. We are focused on using our scale responsibly, staying true to our investment beliefs, and ensuring today's decisions stand up over the long-term. 

Firstly, this isn't new for us. We've been evolving our default investment for many years, adapting to changes in markets, regulation and members’ needs, and doing so in a way that brings members with us, leaving no one behind. Secondly, we're well positioned to deal with the challenges ahead. Our scale investment capability and long-term approach allow us to invest responsibly and thoughtfully on behalf of our workplace customers. 

And finally, this is an ongoing journey. We will continue to evolve our default investment to ensure it remains at the forefront of DC pensions, supporting better long-term outcomes as this landscape continues to evolve and change. If you're interested in where workplace investing is heading and what that means for your clients, please speak to your Royal London contact.