BlackRock has launched a diversified alternatives Long Term Asset Fund (LTAF), giving defined contribution (DC) pension schemes access to private markets.
According to the investment management giant, the fund will give pension savers access to a range of private market investments, including infrastructure, real estate and private equity.
The fund, named the Diversified Alternative Strategies Long Term Asset Fund (DAS LTAF), is backed by both BlackRock’s UK Retirement Savings Plan, which is advised by Mercer, and the UK pension scheme of another global financial services firm.
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“We’re delighted to support pension schemes in providing their members access to a broad range of private markets to drive better retirement outcomes,” said Sarah Melvin, head of UK and Europe client business at BlackRock. “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.”
BlackRock’s UK Retirement Savings Plan has allocated 20 per cent to the DAS LTAF, the firm said.
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“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,” said Tej Patel, DC director at Mercer. “We see private markets as an important component in enhancing diversification and return potential, with the aim of supporting improved member outcomes in retirement.”
An LTAF is a UK-authorised open-ended investment fund designed to invest in illiquid, long-term assets, enabling retail investors and pension schemes to access private markets.
BlackRock’s launch comes after Apollo Global Management announced its first UK long-term asset fund, the CG Apollo Global Diversified Credit LTAF, in March.
