Scottish Widows has added two new propositions to its Lifetime Investment range that give workplace pension members exposure to private markets through two distinct strategies.
Lifetime Investment Plus has approximately 11 per cent invested in private markets, while Lifetime Investment Extra has allocated 23 per cent to private markets, both via Scottish Widows’ recently-launched long-term asset funds (LTAFs).
The CG SW Growth LTAF, managed by Aberdeen Investments, targets higher return assets to achieve growth, including private equity, venture capital, infrastructure equity and private credit.
The CG SW Diversified Credit LTAF, which is designed for the de-risking phase, invests across diverse private credit opportunities, from infrastructure lending, to real estate and SME debt, and is managed by BNP Paribas Asset Management.
The Lifetime Investment range aims to provide growing and sustainable retirement income by investing across a diversified range of assets via “best-in-class” managers.
Scottish Widows’ Lifetime Investment, which launched in March last year, is the default pension option and does not invest in private markets, while newer options Lifetime Investment Plus and Lifetime Investment Extra introduce private market exposure.
Read more: Private market allocations rise as DC funds turn to debt
“Bringing private markets into workplace pensions is a major milestone in helping customers make the most of their retirement savings,” said Graeme Bold, managing director pensions and retirement at Scottish Widows.
“We believe investing in private markets increases diversification and can provide access to long-term growth opportunities to support retirement incomes.”
“With Scottish Widows Lifetime Investment Plus and Extra, members get access to investment opportunities that aren’t available on the stock market, including innovative startups and those companies of the future, currently looking to scale,” Kevin Doran, chief investment officer at Scottish Widows added.
“The portfolios will include investments in areas driving energy transition and adaptation, delivering benefits to members in their immediate environment, alongside future financial returns.”
Scottish Widows, which is part of Lloyds Banking Group, has assets under administration of £280bn.
Read more: UK LTAFs gain momentum as DC pensions target private markets
