Standard Life enhances DC strategy

To meet client needs, Standard Life Investments will launch the Enhanced-Diversification Growth Fund in Q1 2014.  A lower volatility diversified growth fund, EDGF is designed to generate equity-like returns over the cycle with lower volatility than investing in equity markets.  Managed by the award winning multi-asset investing team, EDGF uses a wider breadth of return seeking and diversification strategies compared to more traditional diversification growth approaches.

Standard Life Investments’ multi-asset approach aims to provide innovative key building blocks for DC pension default strategies.  The enhanced proposition differs from a traditional DC default approach in a number of crucial respects:

- Unconstrained by index benchmarks, it unlocks a larger and more diverse pool of return opportunities.
- Extends the available strategy universe to enhance returns and diversify risk in varied market conditions.
- Ability to withstand short-term market uncertainties, to focus on long-term opportunities.
- Genuine diversification of risk provides a more predictable retirement journey for members, improving engagement and long-term commitment to savings.

Commenting on the launch, Louise Kay, Head of UK Institutional Business, Standard Life Investments, said:

“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.

“As well as launching our new fund, the Enhanced-Diversification Growth Fund in Q1 2014, we will also introduce a market leading support service designed to help employers and consultants engage, educate and inform DC scheme members about the Standard Life Investments’ suite of investment options.”