Standard Life Launches Ground-Breaking Corporate Investment Range
Released on: March 12, 2012, 11:01 am
Standard Life has launched a new range of investments for
corporate pension schemes aimed at making it easier for employees to
select an investment strategy to suit their individual needs and
attitude to risk.
The two new risk-based fund ranges, built on the success of MyFolio, are specifically tailored for the corporate pensions market and introduce new auto-enrolment default options, addressing the challenge of meeting the diverse needs of a
Ann Flynn, Head of Corporate Marketing said: "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 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."
Key findings of the research include:
- Employees find a wide range of investment choice confusing however there is still
a demand to have some level of choice.
- Employees want a level of risk and return which is right for them but managed by
- Employers simply want better outcomes for their employees within a strong
governance framework, with competitive charging and minimal risk.
Flynn added: "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
Key features and benefits of the range include two new risk-based ranges, Passive
Plus and Active Plus, specifically for the corporate pensions market to complement
the MyFolio Managed funds. A new life styling approach allows the underlying funds
to be changed as necessary to help future-proof the investments while the Vanguard
index-tracking funds, added in December 2011, will complement the BlackRock
Employees will be able to easily identify their risk appetite and select an
investment strategy to meet their needs and risk-based funds will be actively
managed to help optimise returns. Moreover, employees will be offered clear options,
based on how 'hands on' or 'hands off' they want to be with their investment
selection and the new range provides employers and trustees with the flexibility to
support a broad demographic. Advisers will also be able to recommend from an 'off
the shelf' package of investment funds or design bespoke solutions for their
About Standard Life
Established in 1825, Standard Life is a leading long term savings and investment
company, with around six million customers internationally. By understanding its
customers and offering innovative products to meet their needs, Standard Life helps
people with their financial planning, so they can feel more confident about the
Standard Life provides a range of individual and group pensions, SIPPs, ISAs,
annuities, life assurance, offshore bonds, investment management, wealth management,
tax planning and estate management services.
19a Canning Street
0131 245 4961