Standard Life set to enhance pension exposure in private markets
Pension provider Standard Life is set to launch a new fund with significant private market allocation, as it works to make investing in the private market more accessible for savers.
The Future Opportunities fund aims to improve outcomes and boost returns by diversifying customer portfolios with exposure to quality private assets which could offer increased long-term returns.
The new fund follows a wave of industry figures encouraging investors to increase their standing in private markets in some capacity, due to being able to access opportunities not available in public markets.
The fund will provide a mix of access to private equity, real assets, infrastructure, private debt and venture capital in private markets.
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…it underlines our commitment to improving outcomes for members.”
In efforts to maximise exposure, the allocation of private assets is expected to increase over time, to a potential target of 25 per cent.
Mansion House promise
The fund comes as Standard Life looks to demonstrate its commitment to the Mansion House Accord, with its parent company Phoenix Group being one of the 17 signatories.
Under the accord, pension providers made a voluntary commitment to invest at least 10 per cent of their defined contribution default funds in private markets by 2030, with 5 per cent allocated in the UK.
The provider will also draw on the expertise of its independent private market solutions business, Future Growth Capital, which it formed with asset manager Schroders to deliver on their Mansion House objectives.
Gail Izat, 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… we can offer more choices to employers and the prospect of higher returns to members, while also cementing our commitment to the Mansion House Accord.”