BlackRock has launched a new long term asset fund (LTAF) aimed at helping DC schemes invest in a broad range of private assets.
This Diversified Alternative Strategies LTAF has been seeded by two UK pension schemes, including the BlackRock UK Retirement Savings Plan, which advised by Mercer.
This scheme will allocated 20 per cent of its funds to this LTAF, which offers allocations to infrastructure, private equity and real estate, in a drive to boost long-term returns while also supporting productive finance in the UK. This DAS LTAF adopts a co-mingled, open architecture strategy.
The LTAF will also be available to other DC schemes looking to build private markets allocations, particularly in light of Mansion House commitments.
BlackRock was among the first to launch LTAFs for UK DC schemes, with structures engineered to meet operational, liquidity, valuation and pricing standards required in DC plans.
Leveraging BlackRock’s alternatives platform, as well as Aladdin and eFront for integrated risk oversight and portfolio transparency, the DAS LTAF design reflects learnings from global private market programmes and is calibrated specifically for UK DC pension needs.
BlackRock head of the UK & Europe client business Sarah Melvin says: “We’re delighted to support pension schemes in providing their members access to a broad range of private markets to drive better retirement outcomes. Our strong belief is that private markets can improve long-term outcomes for DC savers when accessed in the right way, which is why we have also introduced the LTAF into BlackRock’s own UK staff pension scheme.”
Mercer DC director Tej Patel adds: “We have worked closely with BlackRock’s UK Retirement Savings Plan to integrate a 20 per cent allocation to private markets within the default strategy.
“We see private markets as an important component in enhancing diversification and return potential, with the aim of supporting improved member outcomes in retirement. BlackRock’s Diversified Alternative Strategies LTAF reflects a number of key principles and features that we expect to deliver value for members over the long term.”
