A new survey reveals a significant shift in UK defined contribution pensions, with schemes increasingly favouring private markets and long-term pooled vehicles like LTAFs to enhance returns and support UK infrastructure and green projects.
A substantial shift is underway in UK defined contribution (DC) pensions as schemes prepare to widen exposure to private markets, with long-term pooled vehicles emerging as the favoured route for illiquid allocations, according to a new survey by Schroders and Longview Networks.
Based on 56 responses from master and single-trust DC schemes representing more than £198bn of assets under management and covering over 70% of Mansion House Accord master trust signatories, the survey found 74% of respondents expect to lift private market allocations within growth-phase strategies and 59% intend to increase exposure in retirement-phase portfolios. More than half (53%) reported raising private equity at their most recent investment review, while 40% boosted UK infrastructure and 35% increased private debt. Risk-adjusted returns were cited as the principal driver for moving into private assets, and 82% of respondents identified renewable infrastructure as the most attractive net-zero opportunity.
The research showed Long-Term Asset Funds (LTAFs) are the structure of choice for these moves: 69% of schemes favoured LTAFs, well ahead of alternatives such as SICAVs and European Long-Term Investment Funds. Schroders said most master trusts have now launched their own LTAF offerings or are working with advisers to embed illiquid strategies, including private equity and private credit, into default arrangements.
Ryan Taylor, head of UK DC clients at Schroders, said: “The DC landscape is changing rapidly, and the Pension Schemes Bill and Mansion House Accord will reshape the investment landscape. Our inaugural DC Investment Survey looks at these seismic shifts driving the industry and shaping DC investment.
“The biggest winner would appear to be LTAFs, with nearly three in four DC schemes planning to structure their private market investments through the investment vehicle. At the same time, more than a quarter plan UK private market allocations, significantly above those encouraged by the Mansion House Accord, suggesting growing momentum behind this investment trend.”
That momentum sits alongside policy and industry initiatives designed to steer more workplace pension capital into long-term, domestic projects. The voluntary Mansion House Accord, agreed in May 2025 by 17 major workplace providers including M&G, Aviva and NatWest Cushon, commits signatories to target 10% of DC default funds in private markets by 2030, with half of that allocation earmarked for UK assets. According to coverage of the Accord, the move reflects a push to boost returns for savers while channelling financing into UK businesses, infrastructure and clean-energy projects; the government has signalled it may legislate if voluntary action falls short.
Official analysis has also underscored the potential scale. The UK government’s Pensions Investment Review estimated the DC market could direct about £74bn to private markets by 2030, with roughly £37bn targeted at UK-based investments, and proposed structural measures such as creating merger-led “megafunds” to unlock capital at scale.
Market players are already committing capital. Mercer announced plans for its UK workplace savings solutions and master trusts to invest in the Schroders Mercer Private Assets Growth LTAF, with an initial commitment of about £350m expected in the fund’s first year. Separately, LifeSight, WTW’s DC master trust, has agreed a £450m commitment to the Schroders Greencoat Global Renewables+ LTAF to give members exposure to renewable energy and energy-transition infrastructure.
Industry advisers and asset managers say the combined effect of regulatory change, voluntary accords and visible commitments from major trustees is accelerating product development and distribution of private-market pooled vehicles. That growth raises practical issues for trustees, including liquidity management, member communications and valuation governance, and has prompted some to revisit default glidepaths to accommodate longer-term, less liquid allocations.
Schroders and Longview’s survey also signalled an appetite among a significant share of schemes to tilt further towards UK private markets, with more than a quarter planning to allocate 25–49% of their private markets exposure to domestic solutions, well above the Mansion House Accord’s UK-specific encouragements. The finding suggests trustees are increasingly willing to accept the trade-offs of illiquidity in pursuit of higher long-term, risk-adjusted returns and to support local economic objectives.
As DC schemes move to implement these strategies, trustees will face heightened scrutiny over governance, cost transparency and the evidence base for expected returns. Government and regulators have emphasised the need for robust stewardship of member savings as the sector reorients towards private assets, and market participants will be watched closely as early LTAF deployments are tested in practice.
- https://www.ipe.com/news/majority-of-uk-dc-funds-plan-to-access-private-markets-through-ltafs/10134938.article – Please view link – unable to able to access data
- https://www.ipe.com/news/majority-of-uk-dc-funds-plan-to-access-private-markets-through-ltafs/10134938.article – A recent study by Schroders and Longview Networks reveals that nearly 75% of UK defined contribution (DC) pension schemes intend to invest in private markets via Long-Term Asset Funds (LTAFs). This trend aligns with governmental and regulatory efforts, such as the Pension Schemes Bill and the Mansion House Accord, which encourages DC schemes to allocate 10% of default funds to private markets by 2030, with half of that directed towards UK assets. The survey encompassed 56 DC schemes managing over £198 billion in assets, with 74% planning to increase private market allocations for growth-phase strategies and 59% for retirement-phase portfolios. Additionally, 53% of respondents have recently raised their private equity allocations, citing risk-adjusted returns as the primary motivation. Over a quarter of DC schemes aim to significantly boost their UK private market exposure, with 25-49% of their private market allocations invested domestically. The survey also highlighted that 82% of respondents view renewable infrastructure as the most attractive net-zero investment opportunity. LTAFs have emerged as the preferred structure for private market investments, with 69% of respondents favouring them over other vehicles like SICAVs and ELTIFs. Many master trusts have launched their own LTAFs to facilitate these allocations, while others are collaborating with advisors to incorporate illiquid assets into default strategies. Ryan Taylor, head of UK DC clients at Schroders, noted that the DC landscape is rapidly evolving, with the Pension Schemes Bill and Mansion House Accord reshaping investment approaches. He emphasised the growing momentum behind LTAFs, with nearly three in four DC schemes planning to utilise this vehicle for private market investments, and over a quarter planning UK private market allocations, surpassing the Mansion House Accord’s targets.
- https://www.trustnet.com/news/13447684/mansion-house-accord-pension-providers-to-invest-10-of-default-funds-in-private-assets-by-2030 – In May 2025, seventeen UK workplace pension providers, including M&G, Aviva, and NatWest Cushon, committed to investing at least 10% of their defined contribution (DC) default funds in private markets by 2030, with half of this allocation directed towards UK assets. This pledge, known as the Mansion House Accord, aims to enhance returns for DC savers and stimulate the UK economy by supporting domestic businesses and infrastructure projects. The Accord builds upon a previous commitment from 2023, which set a 5% target for private equity investments. Chancellor Rachel Reeves indicated plans to introduce legislation to compel pension funds to invest up to £50 billion in private assets if voluntary commitments are insufficient. The Accord signifies a significant shift in pension fund investment strategies, emphasising long-term growth and economic development.
- https://www.theguardian.com/business/2025/may/13/uk-pension-funds-investment-british-firms-mansion-house-accord – Seventeen major UK pension providers, including Aviva, Legal & General, and M&G, have agreed to the Mansion House Accord, committing to invest at least 10% of their defined contribution (DC) default funds in private markets by 2030, with half of this allocation earmarked for UK investments. This initiative aims to bolster the UK economy by directing funds into domestic businesses, infrastructure projects, and clean energy developments. The Accord represents a doubling of previous commitments and reflects a growing trend of pension funds seeking higher returns through private market investments. The government’s support for this initiative underscores its focus on stimulating economic growth and supporting UK industries.
- https://www.mercer.com/en-gb/about/newsroom/mercer-to-invest-in-a-bespoke-long-term-asset-fund-for-private-markets/ – Mercer, a business of Marsh McLennan, announced plans for its UK Workplace Savings solutions, including its master trusts, to invest in the new Schroders Mercer Private Assets Growth Long-Term Asset Fund (LTAF). The LTAF is expected to receive an initial investment commitment of £350 million from Mercer UK’s master trusts in its first year, with further commitments to follow. The fund aims to provide Mercer’s clients with increased access to private market investments, aligning with the growing trend of DC schemes seeking to diversify their portfolios through private assets.
- https://www.wtwco.com/en-gb/news/2025/08/lifesight-announces-strategic-investment-in-schroders-greencoats-renewables-ltaf – LifeSight, WTW’s defined contribution (DC) master trust, has committed to investing £450 million in the Schroders Greencoat Global Renewables+ Long-Term Asset Fund (LTAF). This investment aims to provide LifeSight members with exposure to renewable energy and energy transition-aligned infrastructure assets, including wind and solar projects, large-scale batteries, energy-efficient heat networks, and green hydrogen initiatives. The fund seeks to deliver robust, predictable returns through a diversified portfolio of renewable energy assets, aligning with LifeSight’s commitment to sustainable and long-term investment strategies.
- https://www.gov.uk/government/publications/pensions-investment-review-final-report/pensions-investment-review-final-report – The UK government’s Pensions Investment Review Final Report outlines strategies to enhance pension fund investments, including the creation of ‘megafunds’ by merging smaller pension schemes to unlock significant capital for private market investments. The report estimates that by 2030, the DC market could allocate £74 billion to private markets, with £37 billion directed towards UK-based investments. This initiative aims to stimulate economic growth by directing substantial funds into UK infrastructure, private companies, and clean energy projects, thereby improving returns for pension savers and supporting domestic industries.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
8
Notes:
The article was published on 2 February 2026, making it current. However, the content references a survey conducted by Schroders and Longview Networks, which is not dated. Without a specific date for the survey, it’s challenging to assess the freshness of the data. Additionally, the article mentions the Mansion House Accord, agreed in May 2025, indicating that the survey likely took place after this date. The lack of a precise survey date introduces some uncertainty regarding the timeliness of the information.
Quotes check
Score:
7
Notes:
The article includes direct quotes from Ryan Taylor, head of UK DC clients at Schroders. A search for these quotes reveals that they have been used in other publications, such as the IPE article from 2 February 2026. This suggests that the quotes may have been reused, potentially indicating recycled content. The absence of original, independently verifiable quotes raises concerns about the originality of the reporting.
Source reliability
Score:
6
Notes:
The article is published on IPE, a reputable publication in the pensions industry. However, the content heavily relies on a survey conducted by Schroders and Longview Networks, which may introduce bias. The lack of independent verification or corroboration from other sources diminishes the overall reliability of the information presented.
Plausibility check
Score:
7
Notes:
The claims about UK DC funds increasing allocations to private markets through LTAFs align with industry trends and recent initiatives like the Mansion House Accord. However, the article lacks specific details, such as the exact number of schemes involved or the total assets under management, which would provide a clearer picture of the scale of this shift. The absence of such specifics makes it difficult to fully assess the plausibility of the claims.
Overall assessment
Verdict (FAIL, OPEN, PASS): FAIL
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The article presents information based on a survey conducted by Schroders and Longview Networks, with no independent verification or corroboration from other sources. The reliance on potentially recycled quotes and the absence of specific details about the survey’s methodology and timing introduce uncertainties regarding the accuracy and originality of the content. Given these concerns, the article does not meet the necessary standards for publication.