Standard Life has launched a new corporate pensions investment range with dynamic asset allocation and the ability to alter lifestyling strategy.
The provider is launching two new risk-based fund ranges, Passive Plus and Active Plus, to sit alongside its MyFolio Managed funds.
Standard says the new fund ranges have been designed to allow schemes to reduce the number of options given to employees, while allowing employers and providers to bespoke the precise risk profile of defaults to the workforce.
Passive Plus is a low-alpha option aimed at cost-sensitive investors, and includes passive equity and bond funds from Vanguard, as well as absolute return, property and high yield assets, managed by Standard Life Investments.
Medium-alpha Active Plus offers a blend of actively managed funds from Standard Life Investments and incorporates tactical asset allocation.
MyPortfolio Managed is a high-alpha option offering access to aggressively managed funds.
Advisers can recommend from an ’off the shelf’ package of investment funds or design bespoke solutions for their clients.
Ann Flynn, head of corporate marketing at Standard Life, says: “Over the past two years we have been conducting extensive research with advisers, employers and employees. The employee’s investment choice, and lack of engagement in it, has been an issue the industry has been wrestling with for many years.
“The majority of employees are invested in the default fund and that’s why the default strategy needs to be able to meet the diverse needs of a workforce. We’re now excited to be launching a range of investment solutions which addresses this challenge head on.
“Against a backdrop of negative pension stories and turbulent stock markets, employees tend to have a very low tolerance for taking investment risk with their pension and understandably so. However for many, a level of risk is needed to help generate the returns to achieve a decent standard of living in retirement.
“Our new range will help employees identify their attitude to risk through a simple questionnaire and align themselves to a strategy that best fits their needs. The information will be presented in a way that keeps it simple and shows them at a high level what they are investing in. However, they will also be able to ’look under the bonnet’ if they want to. The risk-based range will be dynamically managed by internal and external experts who will monitor and adjust asset allocation to optimise performance.”