Standard Life and Fidelity International have announced a strategic partnership with the forthcoming launch of the Standard Life Smoothed Return Pension Fund.

The fund aims to help address the growing need for product innovation in retirement solutions and provide more choice for those planning for or already at retirement.

It will be made available through the Fidelity Adviser Solutions platform and aims to support growth in pension investments while providing reassurance from “the daily uncertainty of investing”.

The Standard Life Smoothed Return Pension Fund will be an independently risk-rated multi-asset fund, combined with a smoothing overlay that aims to dampen some of the day-to-day market volatility.

Standard Life and Fidelity stated that peoples’ needs change as they are approaching or at retirement and there was a “necessity” for solutions that cater for people at this stage in their lives.

The fund is being brought to market by Standard Life, which will provide the fund structure, smoothing, valuation, and supporting capital, and will set and oversee the strategic asset allocation.

The underlying assets will be managed by Fidelity’s asset management business.

A pilot will begin to a small group of financial advisers from March 2024 ahead of a full market launch later in the year.

“The retirement market is crying out for innovation and there is a huge opportunity for providers to develop products that help people manage their pension savings and use their retirement income in the best way,” said Standard Life managing director for individual retirement, Claire Altman.

“The Standard Life Smoothed Return Pension Fund has been born out of this need – providing greater choice with a flexible retirement planning option available on platform that delivers a little more certainty on peoples’ journeys to and through retirement.

“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.”

Fidelity International head of UK wholesale, Dennis Pellerito, 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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