Standard Life and Fidelity have partnered to launch a new fund targeted at advised investors.
The Standard Life Smoothed Return Pension Fund, available exclusively through the Fidelity Adviser Solutions platform, is aimed at providing greater choice for those planning for – or already at – retirement.
Standard Life said the retirement market was “crying out for innovation”, adding that the new fund was “born out of this need”.
The “smoothing” process of the fund is designed to protect investors from the daily ups and downs of the stock market and reduce the risks created by “needing to withdraw income at regular but otherwise inopportune times” as well as providing shelter from the unpredictability of life events.
Standard Life, part of Phoenix Group, will provide the fund structure, smoothing, valuation and supporting capital.
It will also set and oversee the strategic asset allocation.
The underlying assets will be managed by Fidelity’s asset management business.
The fund will begin as a pilot to a small group of financial advisers from March 2024, ahead of a full launch later this year.
The two companies said in a statement: “This strategic partnership facilitates the development and distribution of innovative retirement solutions that will help people manage their pension savings in their journey to and through retirement.”
Standard Life managing director for individual retirement, Claire Altman, said: “The retirement market is crying out for innovation and there is a huge opportunity for providers to develop products that help people manage their pension savings and use their retirement income in the best way.
“The Standard Life Smoothed Return Pension Fund has been born out of this need – providing greater choice with a flexible retirement planning option available on platform that delivers a little more certainty on peoples’ journeys to and through retirement.”
Fidelity International head of UK wholesale Dennis Pellerito added: “With the UK’s population living longer than ever before, there is a clear demand for a range of financial solutions that cater to the different needs of an ageing society.
“As people spend longer in retirement, they require products and services that offer flexibility and can be tailored to their goals at any stage.
“The financial services industry – and in particular the advice sector – has a significant role to play in supporting these goals.
“Working together with Standard Life creates a significant opportunity for us to combine the experience within our businesses, and to look at how we respond to the requirements posed by increasing longevity.”
Didn’t this used to be called a With Profits fund? That also purported to deliver a smoothed investment.
Yes, Harry that’s what it looks like to me!