Standard Life to launch 'next gen' private markets alternative default strategy

The pension provider said the fund – Future Opportunities – was designed to maximise member outcomes through exposure to private assets and was planned for launch in the first quarter of 2026.

It said it would complement Standard Life's flagship £35bn sustainable multi-asset default strategy and would be available to workplace employers and scheme members.

Standard Life said the additional default option would provide a mix of private equity, real assets, infrastructure, private debt and venture capital from private markets to deliver added diversification to the other asset classes within the profile which will include listed equity, UK property, fixed income and liquid alternatives.

It said the allocation to private assets was expected to increase incrementally over time with the potential to reach 25%.

Standard Life said its Future Opportunities fund would be further differentiated by its sustainable investment principles and the application of "sustainability improvers" labelling for underlying listed equity and investment grade credit allocations.

Commenting on the forthcoming launch, Standard Life head of investment proposition development Callum Stewart said: "The introduction of Future Opportunities aims to make investing in private markets mainstream for millions of pension savers.

"It will provide the potential for better returns and a level of diversification not previously readily available in a pension default fund, while building on the proven blueprint of our Sustainable Multi Asset strategy. It underlines our commitment to improving outcomes for members and our leadership in the provision of private assets and is a further demonstration of our support for the Mansion House Accord with improving outcomes front and centre of our approach."

The move comes after Phoenix Group and Schroders announced they had formed a strategic partnership to launch a private markets investment manager, Future Growth Capital (FGC), in July last year.

Standard Life said it would partner with FGC for the private market elements of its Future Opportunities strategy – investing in the UK and global private market long-term asset funds (LTAFs) launched by FGC alongside its sustainable multi-asset strategy.

Managing director of workplace Gail Izat added: "We have a strong track record of continually developing our proposition to improve outcomes. By accessing private markets through FGC, our dedicated investment manager, we can offer more choice to employers and the prospect of higher returns to members, while also cementing our commitment to the Mansion House Accord."

Standard Life head of private markets Cecile Retaureau continued: "Private assets play an important role in building diversified portfolios and can deliver enhanced returns. Selecting best-in-class managers across private markets is key to delivering the best outcomes for our Standard Life customers and we are delighted to be partnering with FGC on this initiative."

The insurer said pricing of its Future Opportunities strategy would reflect the level of private assets being held but otherwise be in line with its sustainable multi-asset default strategy. It said it would provide further detail ahead of its launch in Q1 2026.

Standard Life's parent, Phoenix Group, was an original signatory of the Mansion House Compact, and one of the 17 pension providers who signed the Mansion House Accord, pledging to invest at least 10% of their DC default funds in private markets by 2030, with at least 5% allocated to the UK.