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Following a strategic review, we’ve concluded that introducing private assets to our managed funds could improve the long-term financial returns for your clients who invest in them. We believe the change will enable clients to benefit from investment in asset classes historically available to professional investors only.
To enable this change, we’ve entered a joint venture with Schroders called Future Growth Capital (FGC). Schroders has a £77 billion private market capability.1 You can find out more about FGC on its website.
1 Source: Schroders
When will the changes be made?
Through FGC, private assets will be introduced gradually to the managed funds over 18 months, from November 2025. The initial target private assets allocation is 2.5%, but this may vary at the discretion of our fund management team and is expected to rise to around 5% over time.
How will clients be informed?
We’ll begin letting clients know about the change from November 2025, via their annual statements.
View a preview of the communication included in the statements.
The communication covers:
- What private assets are, why they’re being included in the managed funds, and the target range of holdings
- Information about the performance fee
- A QR code that links to a Standard Life webpage, where they can find out more, including a useful guide to private assets.
Please note: the overall risk approach and volatility ratings for affected funds will not change.
Will there be any additional charges?
There will be no change to the annual management charge (AMC), but clients may be charged a performance fee.
The performance fee only applies to the private assets allocation and is a 20% charge on any investment growth over 5.9% (before any other charges).
How the performance fee could work
As an example, let’s assume a client has £40,000 invested in the managed fund.
£1,000 (2.5%) of that is invested in private assets.
- The private assets grow by 10%, so are now worth £1,100
- Since the growth was over 5.9%, the performance fee would be based on the remaining 4.1%
- So, in this simplified example the fee would be £8.20
This example has also been provided on the customer webpage.
The performance fee is only ever applied to the private market strategies being introduced to the managed funds and not the managed funds overall.
Which private assets will the funds invest in?
We’ll ensure that the overall risk approach and volatility ratings for the managed funds will not change, while investing in a range of private assets including:
- Private equity
- Real assets
- Private debt
- Venture capital
Which funds will be affected by the changes?
Two managed funds are affected, as well as nine lifestyle profiles that use those funds. A full list is available below:
|
Funds impacted |
Fund code |
Factsheet and Infographic (where available) |
|---|---|---|
| Standard Life Managed Fund | FA | Factsheet |
| Standard Life Multi Asset Managed (20-60% Shares) Pension Fund | F8 | Factsheet |
| Lifestyle profile impacted | Profile code | Lifestyle profile guide and Infographic (where available) |
|---|---|---|
| Standard Life Balanced Managed Universal Lifestyle Profile | 3BAL |
|
| Standard Life Balanced Managed I Universal Lifestyle Profile | 2BAL | Information |
| Standard Life Balanced Managed II Universal Lifestyle Profile | 4BAL | Information |
| Managed Annuity Lifestyle Profile | 5BAL | N/A |
| Lifestyle profile impacted | Profile code | Lifestyle profile guide |
| Standard Life Cautious Managed Universal Lifestyle Profile | 3CAU | Information |
| Standard Life Cautious Managed I Universal Lifestyle Profile | 2CAU | Information |
| Standard Life Cautious Managed II Universal Lifestyle Profile | 4CAU | Information |
| Lifestyle profile impacted | Profile code | Lifestyle profile guide |
| Stakeholder Universal SLP | S7UN | N/A |
| Stakeholder Lump Sum Series 6 SLP | S7LS | Information |
Contact us
If you have any questions, please email SL_distribution@standardlife.com.