DCs need private market power

Defined contribution (DC) master trusts have historically focused on cutting costs, leading them to opt for passive solutions over better-value options. Fees for these trusts are viewed as the main obstacle facing potential DC investment, with defined benefit (DB) schemes prioritising outcomes over prices. Philip Smith, DC Director at TPT, discusses the challenge DCs are facing in providing value for money, with the need to focus on results over costs. The Mansion House Accord has facilitated this debate and has supported a more diverse investment strategy; private markets provide this and offer...