Standard Life and Fidelity International announce strategic partnership with the launch of a new Smoothed Fund

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• The Standard Life Smoothed Return Pension Fund will launch amid the need for innovative products that support people on their financial journey to and through retirement
• Available exclusively through the Fidelity Adviser Solutions platform, the Fund is designed to help grow pension investments while providing some reassurance from the daily uncertainty of investing

Standard Life and Fidelity International (“Fidelity”) today announce a strategic partnership, with the forthcoming launch of the Standard Life Smoothed Return Pension Fund – a fund designed to help address the increasing need for product innovation in retirement solutions, providing greater choice for those planning for or already at retirement. 

Peoples’ needs change as they are approaching or in retirement, and there is a necessity for solutions which cater for people at this stage of their lives. There will be times when it may not be suitable for their pension savings to be exposed to the day-to-day ups and downs of the stock market. The Fund is being launched with this in mind, aimed at advised investors who are looking to grow their pension investment while providing some shelter from the daily uncertainty of investing. 

The “smoothing” process is designed to cushion the daily ups and downs of the stock market. This helps reduce the risks created by needing to withdraw income at regular but otherwise inopportune times, as well as arising from the unpredictability of life events.  

Claire Altman, Managing Director for Individual Retirement at Standard Life, commented: “The retirement market is crying out for innovation and there is a huge opportunity for providers to develop products that help people manage their pension savings and use their retirement income in the best way. The Standard Life Smoothed Return Pension Fund has been born out of this need – providing greater choice with a flexible retirement planning option available on platform that delivers a little more certainty on peoples’ journeys to and through retirement.” 

The Fund is being brought to market by Standard Life*, which is part of Phoenix Group, the UK’s largest long-term savings and retirement business, who will provide the fund structure, smoothing, valuation, and supporting capital, and will set and oversee the strategic asset allocation. The underlying assets will be managed by Fidelity’s asset management business, and the Fund will be available exclusively through Fidelity Adviser Solutions, a leading investment and retirement services platform for financial advisers.  

This will begin with a pilot to a small group of financial advisers from March 2024, ahead of a full market launch later this year.  

The strategic partnership between Standard Life and Fidelity facilitates the development and distribution of innovative retirement solutions that will help people manage their pension savings in their journey to and through retirement.  

Dennis Pellerito, Head of UK Wholesale at Fidelity International, commented: “With the UK’s population living longer than ever before, there is a clear demand for a range of financial solutions which cater to the different needs of an ageing society. As people spend longer in retirement, they require products and services which offer flexibility and can be tailored to their goals at any stage. The financial services industry – and in particular the advice sector – has a significant role to play in supporting these goals.  

“Working together with Standard Life creates a significant opportunity for us to combine the experience within our businesses, and to look at how we respond to the requirements posed by increasing longevity. Our partnership draws together Standard Life’s vast history of looking after the life savings and retirement needs of its customers, and our commitment to helping clients build better financial futures through both Fidelity’s asset management and platform businesses. We are delighted to be working together with the team at Standard Life and look forward to the development of the partnership in the coming years.” 

Claire Altman continued: “One of the biggest issues we currently face as an industry is ensuring good outcomes for people at retirement, which is at the very heart of the need for innovation. There is a lack of choice, especially for people looking for solutions to help manage daily stock market volatility when it comes to their retirement savings – a risk many planning for or already in retirement may feel unable to take. 

“We are excited to be partnering with Fidelity International. By combining the pensions and long-term savings expertise of Standard Life, with the asset management, distribution and platform expertise of Fidelity, we hope to play a significant role in overcoming the challenges that currently exist within the retirement income space, by broadening access to these types of solutions, in a way that supports advisers’ processes and ways of working.” 

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Notes to editors:

Key fund information - the Standard Life Smoothed Return Pension Fund at a glance:

About the “smoothing” process 

The Standard Life Smoothed Return Pension Fund consists of a multi-asset fund which uses a diversified approach, spreading the fund’s assets across different geographical regions. The Fund is priced using a mechanism that smooths its underlying returns. This smoothing mechanism helps reduce day to day volatility. 

The Fund follows an Estimated Growth Rate (EGR), which is the expected growth rate for the fund less any fund charges. This is calculated using long term growth expectations of the underlying funds and uses data from external asset management companies who specialise in the analysis of different asset types and how they might perform in future market conditions. The EGR is closely monitored on an ongoing basis to provide the potential for steadier growth over the medium to long term.  

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Notes to editors

Financial advisers can register their interest in the Standard Life Smoothed Return Pension Fund here: www.standardlife.co.uk/smoothedform 

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About Standard Life  

• Standard Life is a brand that has been trusted to look after peoples’ life savings for nearly 200 years  
• Today it proudly serves millions of customers who come to Standard Life directly, through advisers and through their employers’ pension scheme. 
• Standard Life is part of Phoenix Group, the largest long-term savings and retirement business in the UK. We’re proud to be building on nearly 200 years of Standard Life heritage together 
• Our products include a variety of Pensions, Bonds and Retirement options to suit people’s needs, helping our customers to invest and save for their future.  
• We support our customers on their journey to and through retirement with comprehensive, easy-to-understand guidance so they can invest in the right way for their needs, and plan a future they feel confident about. 
• Standard Life is the proud headline sponsor of Race for Life, Cancer Research UK’s flagship fundraising event series. 

* Phoenix Life Limited, trading as Standard Life 

About Fidelity International 

Fidelity International offers investment solutions and services and retirement expertise to more than 2.90 million customers globally. As a privately held, purpose-driven company with a 50-year heritage, we think generationally and invest for the long term. Operating in more than 25 countries and with $776.2 billion in total assets, our clients range from central banks, sovereign wealth funds, large corporates, financial institutions, insurers and wealth managers, to private individuals.  

Our Global Platform Solutions business provides individuals, advisers and employers with access to world-class investment choices, third-party solutions, administration services and pension guidance. Together with our Investment Solutions & Services business, we invest $560.4 billion on behalf of our clients. By combining our asset management expertise with our solutions for workplace and personal investing, we work together to build better financial futures. Data as of 31 December 2023. Read more at fidelityinternational.com  

Fidelity only offers information on products and services and does not provide investment advice based on individual circumstances, other than when specifically stipulated by an appropriately authorised firm, in a formal communication with the client.  

Fidelity International refers to the group of companies which form the global investment management organisation that provides information on products and services in designated jurisdictions outside of North America. This communication is not directed at, and must not be acted upon by persons inside the United States and is otherwise only directed at persons residing in jurisdictions where the relevant funds are authorised for distribution or where no such authorisation is required. 

Unless otherwise stated all products and services are provided by Fidelity International, and all views expressed are those of Fidelity International. Fidelity, Fidelity International, the Fidelity International logo and F symbol are registered trademarks of FIL Limited.