Scottish Widows has launched a range of actively-managed risk-based multi-asset funds, available to group and individual pension customers.
The Premier Pension Portfolios offer an alternative to the firm’s existing, largely passive, pension default range.
Available as stand-alone investments or as components of lifestyling options, the range combines funds from external managers with Scottish Widows’ own investment specialists across a range of asset classes.
It aims to offer better returns for broadly the same levels of investment risk as the providers’ existing default pension options.
The Premier funds were soft launched at the beginning of the year and during the first quarter Portfolio 2 returned 4 per cent before charges, compared to 2.1 per cent for the equivalent largely passive default portfolio.
They target annual returns 0.75 per cent higher, net of fees, than the equivalent default portfolios over three years, and use smart beta equity strategies, absolute return, property, global credit and a tactical asset allocation.
The fund range has the same structure as Scottish Widows’ existing lifestyling approaches, with three risk categories - cautious, balanced, adventurous - and three retirement outcomes - targeting annuity, targeting encashment, targeting flexible access.
A glide path design that gradually de-risks from 15 years to the customer’s selected retirement date.