Standard Life Investments enhances DC strategy
31 October 2013
Standard Life Investments, the global fund manager, has announced the launch of a new fund for defined contribution (DC) pension scheme members, building on its successful and innovative suite of solutions for DC clients.
To meet client needs, Standard Life Investments will launch the Enhanced-Diversification Growth Fund (EDGF) in Q1 2014. A lower volatility diversified growth fund, EDGF is designed to generate equity-like returns over the cycle with lower volatility than investing in equity markets. Managed by the award winning multi-asset investing team, EDGF uses a wider breadth of return seeking and diversification strategies compared to more traditional diversification growth approaches.
Commenting on the launch, Louise Kay, Head of UK Institutional Business, Standard Life Investments, said:
“Standard Life Investments continues to develop innovative investment strategies that help DC members navigate market uncertainties over the long-term and avoid excessive volatility.
“We believe strongly that active management leads to better member outcomes from DC pensions and have built on our highly successful multi-asset investing approach to enhance our offering to meet client demand in the DC market.
“As well as launching our new fund, the Enhanced-Diversification Growth Fund in Q1 2014, we will also introduce a market leading support service designed to help employers and consultants engage, educate and inform DC scheme members about the Standard Life Investments’ suite of investment options.”
Standard Life Investments’ multi-asset approach aims to provide innovative key building blocks for DC pension default strategies. The enhanced proposition differs from a traditional DC default approach in a number of crucial respects:
- Unconstrained by index benchmarks, it unlocks a larger and more diverse pool of return opportunities.
- Extends the available strategy universe to enhance returns and diversify risk in varied market conditions.
- Ability to withstand short-term market uncertainties, to focus on long-term opportunities.
- Genuine diversification of risk provides a more predictable retirement journey for members, improving engagement and long-term commitment to savings.