James Monk: At Fidelity, we’ve always backed a single, well-governed default strategy.
FutureWise, Fidelity International’s default investment strategy for UK-based pension defined contribution (DC) schemes, has surpassed £20bn in assets under management (AUM).
The asset manager said its strategy – which is used by more than 250,000 DC members – has more than tripled in size since it adopted a target date fund structure in 2022.
It said performance from the fund's inception in November 2022 to the end of June 2025, delivered gross returns of 12.5% per annum for younger members, and 8.1% per annum for those at retirement.
The milestone comes after Fidelity said FutureWise would become the first investor in its diversified private assets long-term asset fund (LTAF) – with the asset manager starting to integrate the LTAF into its default earlier this year.
Fidelity International investment director for FutureWise James Monk said: "Reaching £20bn in AUM marks a significant milestone for FutureWise and is a clear reflection of the confidence clients and their members have placed in our strategy to support long-term financial wellbeing.
"Fidelity International remains absolutely committed to the UK workplace market and to FutureWise as it goes from strength to strength. Looking ahead, FutureWise is forecast to grow beyond £40bn in AUM by 2030, far surpassing the £25bn threshold set out in the Pension Schemes Bill."
He added: "At Fidelity, we've always backed a single, well-governed default strategy. FutureWise embodies that conviction, ensuring every member benefits from our best investment thinking. As the market moves towards consolidation of default arrangements, we believe FutureWise is well positioned to lead – combining scale, innovation, and a clear focus on retirement outcomes without distraction."
Monk said FutureWise's development from a lifestyle to a target date fund had simplified the investment experience for members while also delivering greater flexibility and investment sophistication within the strategy.
He explained: "In times of heightened regulatory pressure and market uncertainty, solutions with transparent governance and the ability to adapt are often seen as appealing. Flexibility and innovation can be especially valued when navigating inflationary and geopolitical challenges."
