Less than half of the UK’s biggest multi-employer DC pension providers had private market asset allocations in their largest default at the end of 2024 — 17 months after the Mansion House Compact.
This data is published in Corporate Adviser’s Private Markets report. This takes an in-depth look at the current investment allocations to this asset class of the UK’s largest pensions schemes across the growth, pre-retirement and at-retirement phase.
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This report also looks at the future investment strategy of these schemes, taking into account commitments and announcements made in the wake of the more recent Mansion House Accord.
Overall Nest had the biggest growth phase allocation to private market assets (at the end of 2024) across unlisted property, and listed and unlisted private credit, private equity and infrastructure. For at-retirement strategies L&G had the largest allocation.
Other schemes which have already started to build exposure to these various asset classes include TPT Retirement Solutions, NatWet Cushion and The People’s Pension.
The report also looked at adviser attitudes towards what is arguably one of the most significant recent changes within the DC market. Advisers views were sought on mandation, higher charging structures and fiduciary duty, with government increasingly putting pressure on schemes to invest specifically in UK private assets to help boost the economy.
The report also look at the various ways different schemes are accessing different private market assets — be it through LTAFs or direct investments,. It also looks at which providers are planning to include private markets within their main default, and which will offer a ‘twin track’ approach, offering both a ‘premium’ default strategy with private market allocations, alongside a lower cost option for clients.
