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Standard Life and Fidelity join forces on smoothed fund for advisers

‘Strategic partnership’ formed to create the new offering


Standard Life and Fidelity International have teamed-up to launch the Standard Life Smoothed Return Pension fund.

The two firms have entered a ‘strategic partnership’ to create the new adviser targeted offering. The fund is designed to address what they see as the increasing need for product innovation in retirement solutions.

The fund will be available exclusively through the Fidelity Adviser Solutions platform. It is designed to help grow pension investments while providing some reassurance from the ‘daily uncertainty of investing.’

Standard Life will provide the fund structure, smoothing, valuation, supporting capital and will manage the strategic asset allocation. The underlying assets will be managed by Fidelity’s asset management business.

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There will be a ‘pilot’ to a small group of advisers in March, ahead of a full launch later this year. The ongoing charge will be 0.8%.

Claire Altman, managing director for individual retirement at Standard Life, said: “One of the biggest issues we currently face as an industry is ensuring good outcomes for people at retirement, which is at the very heart of the need for innovation. There is a lack of choice, especially for people looking for solutions to help manage daily stock market volatility when it comes to their retirement savings – a risk many planning for or already in retirement may feel unable to take.

“We are excited to be partnering with Fidelity International. By combining the pensions and long-term savings expertise of Standard Life, with the asset management, distribution and platform expertise of Fidelity, we hope to play a significant role in overcoming the challenges that currently exist within the retirement income space, by broadening access to these types of solutions, in a way that supports advisers’ processes and ways of working.”

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Dennis Pellerito, head of UK wholesale at Fidelity International, added: “With the UK’s population living longer than ever before, there is a clear demand for a range of financial solutions which cater to the different needs of an ageing society.

“As people spend longer in retirement, they require products and services which 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.”

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