Standard Life Investments is launching a lower volatility diversified growth fund for the 2014 auto-enrolment market.
The Enhanced-Diversification Growth Fund (EDGF), which will launch in Q1 of 2014 and is available as a component of a scheme or as a standalone default, aims to generate equity-like returns over the cycle with lower volatility than investing in equity markets.
SLI says its enhanced proposition differs from a traditional DC default approach because being unconstrained by index benchmarks, it unlocks a larger and more diverse pool of return opportunities.
It will also introduce a 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 head of UK institutional business Louise Kay says: “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.