Changes to the Fidelity International’s FutureWise, the company’s single default investment strategy for UK-based workplace pension schemes, has seen the fund triple in size to £20 billion in assets under management (AUM), writes James Monk, Investment Director for FutureWise, Fidelity International.
The FutureWise strategy, which supports the needs of more than 250,000 defined contribution (DC) members, forms part of Fidelity’s mission to help people build better financial futures through innovative, sustainable and outcome-focused retirement solutions.
Since adopting a Target Date Fund (TDF) structure in 2022, the AUM has more than tripled in size, with the change in strategy improving transparency, enhancing flexibility and supporting greater diversification. Its performance has been market leading since its inception in November 2022 to the end of June 2025, delivering returns of 12.5% p.a. for younger members, and 8.1% p.a. for those at retirement (gross of fees).
And earlier this year, saw the integration of Fidelity’s first Long-Term Asset Fund (LTAF) – the Fidelity Diversified Private Assets LTAF – providing members with diversified access to private markets.
Reaching £20 billion in AUM marks a significant milestone for FutureWise and is a clear reflection of the confidence clients and their members have placed in our strategy to support long-term financial wellbeing. Fidelity International remains absolutely committed to the UK workplace market and to FutureWise as it goes from strength to strength. Looking ahead, FutureWise is forecast to grow beyond £40 billion in AUM by 2030, far surpassing the £25 billion threshold set out in the Pension Schemes Bill.
At Fidelity, we’ve always backed a single, well-governed default strategy. FutureWise embodies that conviction, ensuring every member benefits from our best investment thinking. As the market moves towards consolidation of default arrangements, we believe FutureWise is well positioned to lead – combining scale, innovation, and a clear focus on retirement outcomes without distraction.
Its development from a Lifestyle to a Target Date Fund has both simplified the investment experience for members while delivering greater flexibility and investment sophistication within the strategy. In times of heightened regulatory pressure and market uncertainty, solutions with transparent governance and the ability to adapt are often seen as appealing. Flexibility and innovation can be especially valued when navigating inflationary and geopolitical challenges.”
Helping members navigate retirement through FutureWise is a core part of our mission to support greater financial wellbeing. Given the diversity of individual needs and the trend toward a more phased transition into retirement, it’s essential to offer a solution that delivers against these highly personal dynamics. We’re seeing strong engagement when digital tools are used to enhance and guide meaningful conversations.
As a global investment and retirement business with expertise across workplace, personal and advised wealth management, we have a unique understanding of the objectives and behaviours of different demographics. In the UK, we have now reached a tipping point where the majority of members are retiring with only DC benefits. This shift means it is imperative we help them make the most out of their savings and take some of the fear factor out of retirement by making it less of an investment decision.
The Pension Schemes Bill and targeted support regulation offers huge potential to get to know our memberships better through retirement and during later life. The ability to connect members with solutions to their problems is game-changing in driving improved outcomes.
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