Standard Life has completed the £15bn transfer of its DC default assets into more sustainable investment strategies.
This means that 1.5m of its workplace pension savers are now invested in a sustainable multi asset solutions as part of their pension default fund.
At the start of the year Standard Life, part of the Phoenix Group, announced plans to transfer these assets in a series of stages. The programme started with the adoption of a sustainable multi asset solution for 87,000 members of the Standard Life Master Trust in February 2022.
This was followed by the transition of 1.2 million members in the Active Plus and Passive Plus III Growth Pension Fund — accounting for £11.4 billion in assets — into a sustainable multi asset responsible investment solution.
The final stage of this transition has involved around 200,000 members invested in Standard Life’s Active Plus and Passive Plus I, II, IV, and V fund ranges. These savers have now been switched into responsible investment solutions. This mean that all of Standard Life DC default funds are now invested in sustainable multi-asset funds.
Similar sustainable solutions were introduced for new members in 2020.
Standard Life, workplace managing director Gail Izat says: “We set out to offer an outcomes-based, future proofed responsible investment proposition not just for new joiners to workplace schemes but for those who have been loyally saving with us for many years too.
“It’s been a massive undertaking to successfully implement the switch of over 1.5 million existing members and transfer £15 billion in assets to our sustainable multi asset investment solutions.
“Our members tell us they want to balance growth and risk while protecting the environment and avoiding harm through their investment choice. Our sustainable multi asset solutions help them do this, knowing we’re investing their money responsibly.”
Recent insight from Standard Life shows that 88 per cent of customers see growth and risk management of their pension savings as a priority, while 84 per cent want to avoid harm with their investments. When it comes to protecting the environment, 90 per cent said that was important too.
This new fund aims to accelerate investment growth in the early years. This change comes after a period where some of the Standard Life workplace defaults have suffered from poor performance relative to peers.
Standard Life has also increased the responsible investing content of the growth fund. This includes a 50 reduction in carbon emissions, and screening out of controversial weapons, tobacco production, thermal coal and unconventional oil and gas. Standard Life says it is also driving positive change through increased stewardship.
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