Schroders’ latest analysis highlights how incorporating private markets into defined contribution (DC) schemes can enhance long-term returns while reducing portfolio volatility.
A 10% allocation to a multi-asset long-term asset fund (LTAF) boosted projected retirement income by £2,200 annually, while cutting drawdowns by 10–13% during recent crises.
Private markets offer diversification, low correlation with public assets, and access to illiquidity and complexity premia, improving portfolio resilience.
Smoothing volatility supports member confidence and engagement, mitigating poor decision-making during market stress.
How could a strategic allocation to private assets reshape DC retirement outcomes? Explore the full report for detailed insights.