Fund will take a thematic ESG approach and see Phoenix invest in high growth British start-ups, fuelling job creation

Phoenix Group (“Phoenix”), the UK’s largest long-term savings and retirement business, announces the launch of its first dedicated Venture Capital fund, “Phoenix Venture Capital Partners”, with an initial allocation in excess of £100m. This move is designed to enable Phoenix to construct portfolios that include exposure to Venture Capital for Phoenix Life Unit-Linked and With-Profits policyholders, diversifying into an asset class that has until now been largely reserved for institutional investors. This is the first allocation to Venture Capital in the policyholder funds, and the first allocation to Patient Capital in the Unit Linked funds.

Developed and administered with its strategic asset management partner Aberdeen Standard Investments, the fund will predominantly invest in disruptive and transformative early stage UK based start-ups and businesses, with a thematic ESG approach within a number of sectors including Fintech, Green Energy and Healthcare, to provide attractive risk adjusted returns. The investments made through the newly created Venture Capital fund will help business to scale-up their companies and enable them to focus on growing out their workforce, whilst giving them access to the expertise that they require.

James Mitchell, Head of Manager Oversight, Phoenix Group commented:

“We are pleased to have made an initial allocation to Venture Capital for our policyholder funds, which we see as a key enabler to helping Build Britain Back Better whilst providing our policyholders with a diversified source of sustainable returns. The new Venture Capital fund will support Healthcare, Green Energy and FinTech entrepreneurs up and down the country, providing them with the capital and the expertise they need to level up and grow their businesses.

“Subject to market conditions, we intend to increase this allocation in due course as we see this as an attractive asset class, consistent with our policyholder’s objectives and values.”

Aileen Mathieson, Global Head of Insurance, Aberdeen Standard Investments said:

“We are delighted to collaborate with Phoenix to develop this new Venture Capital fund which enables Phoenix policyholders to access Venture Capital opportunities, particularly those focused on ESG themes. Our Venture Capital team, which has a very strong track record of raising assets, will be managing the fund and targeting high quality venture capital managers.

“The fund’s creation benefitted from the recent insurance permitted-link changes, making this an innovative long-term investment strategy for the Phoenix policyholder and With-Profits books that have committed capital to the fund.”

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Enquiries

Dilesh Sangaran PR Manger Phoenix Group
07974 604 323 / 0203 735 0942
Dilesh.sangaran@thephoenixgroup.com

Notes to editors About Phoenix Group

Phoenix Group is the UK’s largest long-term savings and retirement business with c.14 million customers and £338 billion of assets under administration across both our Heritage and Open businesses.

Our Heritage business, where we are the market-leader, is focused on the safe and efficient management of insurance policies. The Heritage business comprises products that are no longer actively marketed to customers, and where we have stepped in as the custodian of these policies. We have built this business through the consolidation of over 100 legacy insurance brands.

Our Open business comprises products that are actively marketed to new and existing customers and has five separate business units. Our Workplace pensions and Customer Savings & Investments (“CS&I”) units operate under the Standard Life brand and manufacture long-term savings and retirement products to support people saving for their future.

The Retirement Solutions unit within Open includes both vesting annuities and our Bulk Purchase Annuity (“BPA”) business, where we acquire annuities and deliver the financial stability required to secure pensions currently provided by corporates.

The Open business comprises our market leading brand – “SunLife” – which sells a range of financial products specifically for the over 50s market and our European business unit which spans Ireland, Germany and the International Bond segment in the UK and operates under the Standard Life brand.

About Aberdeen Standard Investments

• Aberdeen Standard Investments is a global asset manager dedicated to creating long-term value for our clients. With over 1,000 investment professionals, we manage £456.9 billion* of assets worldwide and have clients in c.80 countries. (*as of 31 December 2020)
• We are high-conviction, long-term investors who believe teamwork and collaboration are the key to delivering repeatable, superior investment performance.
• Standard Life Aberdeen plc is headquartered in Scotland. It has over 1 million shareholders and is listed on the London Stock Exchange.
• You can access the Aberdeen Standard Investments media centre here: Stay updated on news and events from Aberdeen Standard Investments