BlackRock has launched the Diversified Alternative Strategies Long Term Asset Fund, aimed at expanding defined contribution pension scheme access to private markets.
The co-mingled, open-architecture fund will provide exposure to assets including infrastructure, private equity and real estate, as UK workplace pension schemes continue increasing allocations to long-term illiquid investments.
The fund has been seeded by two UK DC pension schemes, including the BlackRock UK Retirement Savings Plan, advised by Mercer, which has allocated 20% of its assets to the strategy.
BlackRock said the launch was designed to enhance long-term retirement outcomes by complementing public market exposures with private market investments, while also supporting broader UK productive finance initiatives.
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Sarah Melvin, head of the UK & Europe client business, BlackRock, said: “Retirement is at the core of what we do at BlackRock. We’re delighted to support pension schemes in providing their members access to a broad range of private markets to drive better retirement outcomes. 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.”
Tej Patel, DC director, Mercer said: “We have worked closely with BlackRock’s UK Retirement Savings Plan to integrate a 20% 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.”
