Standard Life News
Introducing private assets to our range of Sustainable Multi Asset default solutions
Helping members access more investment opportunities while continuing to support their long-term retirement goals.
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Private markets have long played an important role in global investing, providing access to investment opportunities beyond public markets. As access to these opportunities becomes increasingly available within Defined Contribution default strategies, they're becoming an important consideration for workplace pension providers.
As part of the ongoing review of our range of Sustainable Multi Asset (SMA) workplace default solutions, we're introducing carefully selected private assets into the strategy. This marks the next stage in the evolution of SMA, helping to ensure it continues to meet members' needs as investment markets develop over time.
Why are we making this change?
Most workplace members invest through their employer's default option and default investment design is a key factor in influencing long-term retirement outcomes for members. That's why we regularly review our default solutions to ensure they continue to meet members' needs and reflect changes in investment markets.
As markets evolve, we believe workplace pension savers should benefit from access to a broader range of investment opportunities. Private assets can provide exposure to areas that aren't always available through public markets, including infrastructure, private equity, venture capital and private debt.
We believe carefully incorporating private assets into SMA can can enhance the existing strategy by broadening diversification and supporting better long-term member outcomes.
What will this look like in practice?
We’re initially targeting an allocation of around 3% to private assets within SMA. This allocation will be introduced gradually through a carefully governed implementation process, providing a measured entry point while maintaining the overall objectives of the strategy.
Members will continue to invest through the same diversified default strategy, with private assets becoming an additional asset class alongside traditional ones that SMA will continue to invest in. The changes are designed to feel like a continuation of how members' pensions are already invested, while broadening the range of opportunities available to them.
Why quality and implementation matter
Introducing private assets isn't simply about adding a new investment type. Success depends on selecting the right opportunities and implementing them effectively. That's why we've partnered with Future Growth Capital (FGC), our joint venture with Schroders. FGC brings specialist private markets expertise to source and manage high-quality private asset opportunities. This is complemented by Standard Life's workplace pensions experience and focus on supporting good long-term member outcomes.
We believe this combination of specialist expertise, strong governance and a measured implementation approach is critical to delivering the long-term benefits private assets can offer.
What about charges and fees?
The Annual Management Charge (AMC) for SMA will not change as a result of the initial allocation of around 3% to private assets.
As is common when investing in private markets, additional expenses may increase over time. This is because private markets can involve specialist costs and, in some cases, performance fees. Any performance fees would apply only to the private assets portion of the strategy and only if specific performance thresholds are met.
Any additional expenses, including performance fees where applicable, will continue to be disclosed in line with our existing investment reporting.
We believe that carefully introducing exposure to private markets can support long-term member outcomes through broader diversification and access to additional sources of return, while taking a measured and carefully governed approach.
Looking ahead
The gradual introduction of private assets marks the next step in the evolution of our Sustainable Multi Asset default and will commence from December 2026. By carefully incorporating private assets alongside existing public market investments, we're aiming to broaden diversification, expand investment opportunities and continue supporting good long-term outcomes for workplace pension savers.
If you'd like to find out more about this change, please speak to your usual Standard Life contact.
The value of investments can go down as well as up and could be worth less than what was paid in. Past performance isn't a guarantee of future performance.
There are different risks associated with private assets. Private assets aren't regularly valued. There could be significant changes in value rather than a gradual increase or decrease. In fluctuating markets, the value may need to be estimated based on the information that’s available at the time.
They can take longer to buy or sell. If this happens, members may not be able to get the money out when they want it, especially if many people want to sell at the same time. We may need to wait before we can transfer or switch investments.
For further information on risks refer to the literature and fund factsheets.