We’ve added some investments called private assets into the managed funds
| Funds impacted | Fund code |
|---|---|
| Standard Life Managed Fund | FA |
| Standard Life Multi Asset Managed (20-60% Shares) Pension Fund | F8 |
Private assets are types of investments that aren't listed or traded on public markets. For example, they can include, but aren't limited to, private companies or commercial property.
Private assets could grow your pension investments over the long term
Private assets can offer higher long-term growth compared to more traditional investments like equities and bonds; however, they can take longer to buy or sell. You can transfer or switch funds at any time, but in exceptional circumstances, we may need to wait before we can transfer or switch your investments.
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Having a mix of investments can help to spread risk and improve your potential for positive returns
Your fund already invests in a mix of traditional investments. We’ve just expanded this to include private assets to try and provide better returns over the long-term.
Increasing the mix of investments like this is known as diversification.
Discover why diversification can be a good thing
We’ll build up the amount of private assets over time, starting at around 2.5% of your fund. Importantly, the broad risk level of your fund won’t change.
Your annual management charge won’t change, but you may be charged a performance fee
The performance fee only applies to the private assets held in your fund. It’s 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 you’ve £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 is a simple example and shouldn’t be relied on for any investment decisions.