The Scale Effect: How Size Shapes Investment Governance and Allocation
PGIM IAS examines how greater scale both enables and pushes investors to allocate differently, with implications for governance as well as investment outcomes.
Industry Insights: Hidden cost of early access programs
As corporations migrate to defined contribution (DC) plans, asset allocators are increasingly interested in incorporating illiquid private assets in these retirement funds to offer participants the same menu of investment options as defined benefit (DB) plans.
Across the globe, multi-employer retirement plans such as Australian superannuation funds now operate in an increasingly dynamic and evolving market and regulatory environment. In addition, governments are encouraging plans to bolster retirement outcomes and support national economic growth by investing in illiquid private assets such as private equity, venture capital and infrastructure.
In an article originally published by the "Australian Financial Review," PGIM's Institutional Advisory & Solutions team (IAS) shares insights from its research on the the challenges presented by this evolving landscape and provides perspective on how investors can navigate the challenges of illiquid private assets, including uncertain cash flows, asset pacing and rebalancing.
Institutional Advisory & Solutions
The IAS team conducts bespoke, quantitative client research that focuses on asset allocation and portfolio analysis.
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