What are private market investments and could they benefit DC pension savers? Read our article to find out more.
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
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
They might be unfamiliar with the term ‘illiquids’, but our recent research suggests that most DC pension members want them.
John Roe, LGIM’s Head of Multi-asset Funds, and Jesal Mistry, Head of DC Investment, explore and debate the pros and cons of illiquids (private markets) including how we believe these type of investments could be positioned in a wider multi-asset portfolio and how to uncover different types of assets, whether in social housing, renewables, or elsewhere.
Read about our other flagship DC funds
L&G Private Markets Access Fund
L&G Lifetime Advantage Funds
Get in touch
Get in touch
If you would like any further information please complete the contact us form.
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.