Access all areas? Private markets and the public: What do DC pension savers think?
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?
Access all areas? Private markets and the public: What do DC pension savers think?
With all the talk about unlocking private market investments for DC pension investors, we felt it was important to explore the views of pension savers directly. After all, this is their pension money we’re investing, and their opinions matter. Our latest research uncovers DC savers’ understanding of private markets and which type of investments might inspire them to take more interest in their pensions. We also explore savers’ appetite for risk, whether they’d be willing to pay more to access this asset class, and whether they feel these types of investments could offer more opportunities for financial growth. So, do private market investments pique their interest and do they want their pension funds to be able to access these areas?
How private market investments might benefit DC scheme members
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).
Aiming to support projects with real world impacts’
through investment in high-growth sectors such as clean power and affordable homes.
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.
Read about our other flagship DC funds
L&G Private Markets Access Fund
L&G Lifetime Advantage Funds
Get in touch
Get in touch
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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.