Smoother Sailing: Private Markets as a Stabilizer for DC Portfolios

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.