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Industry Voice: Helping DC schemes go private

clock • 3 min read
Industry Voice: Helping DC schemes go private

The pensions landscape is undergoing significant change brought about by legislation, technology, and the economy. To meet retirement goals in this environment, schemes are beginning to look beyond traditional markets to the potential diversification benefits of private markets. 

At BlackRock, we believe that private markets offer compelling attributes that advocate their inclusion in many institutional investor portfolios but acknowledge that they are not for everyone. Our paper focuses on the importance of understanding risk and strong portfolio construction practices because private market valuations are not immune to bouts of volatility and will go through benign and tough market environments.

In our latest paper, Helping Defined Contribution Schemes Go Private, we look to provide a framework to help schemes consider allocations to private markets with the default investment strategy.

We cover:

  • What are private markets and what role do they play in DC today?
  • Key considerations when allocating to private markets
  • Case study of private markets' impact on a DC portfolio
  • What's next?

 

 

This post was funded by Blackrock

 

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Important information

This material is for distribution to Professional Client (as defined by the FCA or MiFID rules) and Qualified investors only and should not be relied upon by any other persons.

Issued by BlackRock Life Limited ("BLL"), which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority. The Fund described in this document is available only to trustees and members of pension schemes registered under Part IV of the Finance Act 2004 via an insurance policy which would be issued either by BLL, or by another insurer of such business. BLL's registered office is 12 Throgmorton Avenue, 46 London, EC2N 2DL, England. Registered in England and Wales number 02223202. Please refer to the Financial Conduct Authority website for a list of authorised activities conducted by BlackRock.

Any research in this document has been procured and may have been acted on by BlackRock for its own purpose. The results of such research are being made available only incidentally. The views expressed do not constitute investment or any other advice and are subject to change. They do not necessarily reflect the views of any company in the BlackRock Group or any part thereof and no assurances are made as to their accuracy.

This document is for information purposes only and does not constitute an offer or invitation to anyone to invest in any BlackRock funds and has not been prepared in connection with any such offer.

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