Alternatives and ESG floundering in DC investment

Aon research

Hope William-Smith
clock • 2 min read

Defined contribution (DC) schemes are mostly content with the current asset classes available despite the industry’s push into proving members can benefit from diversified investments underpinned by strong ESG integration.

Aon quizzed over 200 DC schemes covering £50bn in assets and half a million members and found just 6% of schemes would like to extend their range of investment options to incorporate additional asset classes beyond those currently available from the DC platform. Head of DC investment advisory Chris Inman said the findings "came as a surprise" given the agreed benefits of portfolio diversification. Despite the prevalence of alternative investment options, many schemes continue to struggle with a knowledge gap in alternative investments, he added. "Some schemes may feel that their cu...

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