Overview
In a world of heightened market and geopolitical risk, FutureWise’s role as our single default is increasingly valuable: a consistent, well-governed strategy focused on long-term member outcomes.
Scale is not an end in itself, but it is a powerful enabler. It supports FutureWise’s position against the Pension Scheme Act scale threshold, opens access to new investment opportunities, strengthens governance and improves portfolio resilience.
So how have we used scale to improve outcomes?
Flexibility and diversification in a more complex world
A more challenging macro backdrop, including stagflation risk and geopolitical fragmentation, reinforces the need for active management and genuine diversification. Scale has allowed us to evolve the toolkit available within FutureWise, including:
- 2023: launched the Climate Aware Global Government Bond Fund.
- 2024: launched USD and EUR global investment grade and high yield funds, adding regional flexibility across bond markets.
- 2025: launched the Diversified Private Asset LTAF, broadening return sources through private equity, real estate, infrastructure and private credit.
Many of these innovations, particularly private assets, would not be possible without scale. But the value of scale is not just product development; it is also the ability to diversify and manage the portfolio actively through volatile markets. Over the past year, this has included allocations to gold, US minimum-volatility equities, shorter-duration bonds, global inflation-linked bonds and cash. The key is not just access to these tools, but the ability to implement them quickly and effectively reflecting the sophistication of the governance framework underpinning the strategy.
Delivering value for money
Value for money must be judged net of costs. While FutureWise charges have increased to accommodate private assets, scale did also enable a 0.02% reduction in ongoing charges for all members in 2024. It is important we maintain the mindset of ‘value’ not ‘cost’ in demonstrating how value and member outcomes can be accelerated.
This focus on net member outcomes, research and evidence-led design was recognised through two 2025 awards:
- Professional Pensions - Target Dated Fund Manager of the Year
- Corporate Adviser - Highly Commended Ultimate Default
We remain alert to the risk that the incoming Value for Money framework could encourage asset allocation herding, but if clients have heard one thing from us on FutureWise, it is the conviction and belief in a single default strategy focused on maximising member outcomes.
The strength of this objective and our governance framework help insulate us from this behaviour, while our broad and deep research incentivise us to continue innovating.
Building a private assets platform for the decades ahead
Private markets are one of the most significant structural opportunities for improving DC outcomes, provided implementation prioritises quality over speed.
Our approach is to build a long-term platform, not a short-term allocation. The development of our Private Markets Partner Network is a key step in that journey, bringing together a curated group of specialist managers across asset classes, where we are excited to announce the first 10 General Partners (GPs) of this Network.
Three key dynamics that should matter to FutureWise investors are:
- The value of a rigorous research process is only as good as the universe or constraints you are searching within.
- Fidelity’s DPA LTAF is searching in the closed-ended universe (80% of private markets), this allows us to tap into the highest quality and most mature parts of the private market - where many others are not.
- We are allocating primary capital to GPs, making us an important partner for the GP, such that we can be confident in the quality of co-investment deals being shown to us. Rather than being a “funder of last resort” for the GP.
- Our diversified implementation across specialist GPs, is different to many others focusing on a more limited and simplified implementation, which emphasises the maturity and breadth of our research capability.
Our differentiated position has always been one of global private asset diversification, hence why we are the only workplace provider not to have signed the Mansion House Compact or Accord. This has protected our rigour around fiduciary duty, insulating our investment philosophy from political influence and empowering our Master Trustees.
The importance of specialist managers in delivering value
The strength of the Private Markets Partner Network lies in specialist expertise across different sources of return. Over time, we expect around 30 GPs in the network, with approximately 20 held in the Diversified Private Asset LTAF, allowing flexibility as market conditions evolve.
- Private Equity
- Haveli - North American Technology
- CVC - Global low-risk mature private equity buy-out
- HG - European Technology
- Real Estate
- Fidelity International - European low-carbon logistics
- Bridges - Impact UK social housing and care
- Infrastructure
- Stonepeak - global diversified infrastructure
- Digital Bridges - global digital infrastructure
- Private Credit
- Crescent Capital - European specialty lending, focused on defensive sectors
- Churchill - US mid-market direct lending
- Ares - North American collateralised loans supporting Ares-owned companies
This blend of specialisms is critical. It enables diversification not just across asset classes, but across sources of return, helping to build more resilient portfolios.
Looking ahead: aligning innovation with member outcomes
As DC schemes grow, the opportunity is not simply to access new asset classes, but to use them more intelligently across members’ investing lives. Looking ahead, this includes exploring how private markets can support not only growth-phase investors, but also those approaching retirement, particularly through income-oriented assets such as private credit and lower-risk real assets.
Ultimately, the next phase of DC investing will be defined by strategies that can:
- Deliver strong long term outcomes net of fees
- Provide diversified access to global opportunities
- Manage inflation and downside risks effectively
- Maintain robust governance and transparency
For members, the objective remains unchanged: achieving better retirement outcomes.
The difference today is that the tools available to deliver on that objective are expanding. The challenge and opportunity are to use them with discipline, at scale, and with a clear focus on long-term value.