FutureWise - building a better future

Our default investment strategy for workplace investing pension schemes, FutureWise, is exactly what it says on the tin. It aims to provide the best outcomes for your members, by adapting to every stage of their journey to retirement and beyond. FutureWise combines investment expertise, foresight and a focus on sustainability.

You can find out more about FutureWise in our guide or by watching these short videos:

The FutureWise strategy is delivered through a Target Date Fund (TDF) structure. We have a series of TDFs that target dates every five years, such as 2030, 2035 and 2040. This means pension savings are invested in a fund (a Target Date Fund) that is carefully managed by strategic asset allocation and the general glidepath that each TDF will follow to their target date.

Unlike traditional lifestyle strategies, members’ savings are invested in one all-encompassing fund that has a single charge that applies for the life of the fund. This means that we can tactically increase or decrease the allocation to certain investments and delay or expedite the process of adjusting members' investments to further diversify (within prescribed bandwidths) when we believe doing so can add value or better manage risk. Each TDF fund is dynamically managed to suit economic and market conditions until - and through - retirement for members to keep their pension savings invested and taking regular income from it using an income drawdown option. There are currently 11 Target Date Funds and more will be launched over the coming years. The funds currently range from 2025 to 2070, with dates every five years. Members do have the flexibility to change their retirement date when savings will move into a fund with a different target date. Around three years after the TDF reaches the target date, the member’s money is automatically moved into the FutureWise Target Date Retirement Fund.

This offers:

• Simplicity and clarity: Having one single fund makes it much easier to monitor investments. In addition, PlanViewer, our easy-to-use online site, helps members to understand how their money is invested, charges, risk and its performance.
• Future-proofing: The FutureWise Target Date Funds are being managed in close collaboration with BlackRock. The underlying funds will be established and managed by BlackRock in accordance with fund specifications defined by Fidelity. Because the glidepath, as well as the portfolios, are delegated to Fidelity, it enables future innovation and flexibility to change strategies and access to broader investment opportunities.
• Efficiency and value: The FutureWise TDF structure is easier to administer and creates operational, tax and investment efficiencies that we can pass on to members.

We know retirement plans can change. Our approach gives your members the freedom to start taking their benefits when they choose, together with the confidence that their pension contributions are being managed to optimise outcomes. Remember that withdrawals from a pension can normally be taken from age 55. This is due to rise to 57 in 2028.

A focus on sustainability is the right thing for the planet, and the smart thing to do for members’ investments.

We make sure the companies FutureWise invests in are sustainable, with strong environmental, social and governance (ESG) standards. Likewise, there are some companies we won’t invest in as we don’t believe they’ll provide long term value. This covers various areas from weapons manufacturers to thermal coal companies and violators of the UN Global Compact.

We have set targets to help us achieve this:
 

1. Halve the carbon footprint of our investment portfolio by 2030, from a 2020 baseline, reaching net zero across portfolios by 2050; and
2. Achieve net zero across Fidelity’s own operations by 2030.

The FutureWise Target Dated Funds strategy has our net zero commitments baked into our governance structure, but it also goes a step further committing to having a lower carbon intensity than its benchmark, which is already partially Paris Climate aligned.

FutureWise is continually evolving and innovating to meet the future needs of your business and your members.

We combine competitive, transparent pricing with rigorous governance and oversight to ensure peace of mind for you and target good outcomes for your members.