Pension provider Standard Life is poised to unveil a new fund featuring substantial private market exposure, as it strives to make private market investing more accessible to savers.
The Future Opportunities fund seeks to enhance outcomes and amplify returns by diversifying customer portfolios with access to high-quality private assets that may deliver superior long-term performance, as reported by City AM.
The new offering follows a surge of industry voices urging investors to bolster their private market presence in various forms, given the ability to tap into opportunities unavailable in public markets.
The fund will deliver a blend of access to private equity, real assets, infrastructure, private debt and venture capital within 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 a bid to maximise exposure, the allocation of private assets is anticipated to grow over time, reaching a potential target of 25 per cent.
Mansion House promise
The fund emerges as Standard Life seeks to showcase its dedication to the Mansion House Accord, with its parent company Phoenix Group amongst the 17 signatories. Under the agreement, pension providers made a voluntary pledge to allocate at least 10 per cent of their defined contribution default funds to private markets by 2030, with 5 per cent earmarked for the UK.
The provider will also leverage the knowledge of its independent private market solutions division, Future Growth Capital, which it established alongside asset manager Schroders to fulfil their Mansion House commitments.
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.”
