Marvin OnumonuStandard Life is planning to launch a new pension default fund with a strong focus on private assets.
The fund, called Future Opportunities, is an update to Standard Life’s sustainable multi asset lifestyle strategy.
It will include private equity, real assets, infrastructure, private debt and venture capital, alongside listed equity, UK property, fixed income and liquid alternatives.
The aim is to offer higher returns and more diversification for pension savers.
Over time, the allocation to private assets could reach 25%, as Standard Life believes this mix can improve net outcomes for members.
The fund will also apply Standard Life’s sustainable investment approach, with sustainability labelling on listed equity and investment grade credit allocations.
Phoenix Group and Schroders have set up Future Growth Capital, an independent business focused on private markets.
This will give Standard Life access to a wider range of private asset investments.
Phoenix Group is also a signatory of the Mansion House Compact and Accord, which are commitments to invest more in private markets by 2030 if it benefits scheme members.
Callum Stewart, head of investment proposition development at Standard Life, said: “The introduction of Future Opportunities aims to make investing in private markets mainstream for millions of pension savers.
“It will provide the potential for better returns and a level of diversification not previously readily available in a pension default fund, while building on the proven blueprint of our Sustainable Multi Asset strategy.
“It underlines our commitment to improving outcomes for members and our leadership in the provision of private assets, and is a further demonstration of our support for the Mansion House Accord with improving outcomes front and centre of our approach.”
Future Growth Capital will support the new fund with its private market expertise.
Gail Izat, managing director of workplace at Standard Life, said: “We have a strong track record of continually developing our proposition to improve outcomes.
“By accessing private markets through Future Growth Capital, our dedicated investment manager, we can offer more choice to employers and the prospect of higher returns to members, while also cementing our commitment to the Mansion House Accord.”
Cecile Retaureau, head of private markets at Standard Life, said: “Private assets play an important role in building diversified portfolios and can deliver enhanced returns.
“Selecting best-in-class managers across private markets is key to delivering the best outcomes for our Standard Life Customers and we are delighted to be partnering with Future Growth Capital on this initiative.”
