Private market investments for DC savers

Private markets continue to be the hot topic in DC town, but what are they and how might they aim to help maximise long-term returns for savers and seek to bring environmental, social and economic benefits?

How private market investments might benefit DC scheme members

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Aiming for enhanced returns

through a reasonable expectation of an illiquidity premium (compensation for investing in assets that can’t be easily converted into cash).

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Aiming to support projects with real world impacts’

through investment in high-growth sectors such as clean power and affordable homes.

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Access to a wider range of opportunities

through investments that aren’t typically accessible via public markets, and which aim to increase *diversification to help reduce risk.

How we’re investing in private markets to help make a positive difference to our world

Listen to the podcast

In our latest podcast, ‘Peeping behind the curtain: private market investments in DC pensions,’ Rita Butler Jones, Head of DC, Christy Lindsay, Head of Private Markets Distribution, and Martin Dietz, Head of Diversified Strategies, uncover some of the challenges in accessing private markets in DC pensions and their strategies to overcome them. They also discuss some of the private market investments that they believe have the potential to peak pension savers’ interest in their pensions.

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Peeping behind the curtain at private market investments in DC pensions

Key risks

The value of any investment and any income taken from it is not guaranteed and can go down as well as up, and investors may get back less than the amount originally invested. *It should be noted that diversification is no guarantee against a loss in a declining market. Assumptions, opinions and estimates are provided for illustrative purposes only. There is no guarantee that any forecasts made will come to pass. The risks associated with each fund or investment strategy should be read and understood before making any investment decisions. Further information on the risks of investing is available from LGIM’s Fund Centres.

Whilst LGIM can integrate Environmental, Social, and Governance (ESG) considerations into its investment decision-making for part of the fund, and stewardship practices, this does not guarantee the achievement of responsible investing goals within the portfolio.