Smoother Sailing: Private Markets as a Stabilizer for DC Portfolios

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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.

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