Partners Group has launched the first private market fund for UK defined contribution schemes.
The Partners Group Generations Fund will provide investors with access to private infrastructure, private real estate as well as private debt and equity.
While these asset classes are often seen as being too illiquid to form part of DC portfolios the fund provides daily liquidity and pricing.
"The fund is daily priced and daily dealt and we had to strike a balance between providing access to private markets while also providing liquidity," says Partners Group global head of consultant relations Joanna Asfour. "We did this by looking at it from a portfolio construction perspective."
The underlying portfolio includes a significant allocation to return seeking private market asset classes. This is complimented by an allocation to a yield seeking credit portfolio.
Liquidity is facilitated through an allocation to listed private equity, infrastructure and real estate.
The fund is designed for inclusion within a professional managed DC plan and could be blended with other funds to meet the 0.75% DC charge cap to form part of a scheme's default fund.
"This fund could be of interest to trust based DC schemes with experience of these asset classes through offering them to their defined benefit members," said Asfour.
Partners Group co-CEO Andre Frei said: "Private markets asset classes have long been an important source of returns for defined benefit pension schemes, but until now UK DC pension schemes have been unable to invest in them for structural reasons. Our fund was designed in consultation with DC plan sponsors who are seeking ways to improve the retirement outcomes for their DC scheme members."
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