Why renewables are at the forefront of the DC allocation revolution
Government-driven shift into private markets is taking shape – and UK energy transition infrastructure has emerged as a key option to address concerns around domestic concentration, argues Duncan Hale, portfolio manager at Schroders Greencoat.
UK defined contribution pension schemes are approaching an asset allocation inflection point. Private markets, long discussed in boardrooms and in policy papers, are moving into active deployment – and within this seismic shift, energy transition infrastructure is emerging as a core investment option.
Our inaugural Defined Contribution Investment Survey 2026, which gathered views from schemes representing over £198bn in assets and more than 70% of Mansion House master trust signatories, found that nearly three-quarters of schemes expect to increase private market allocations within growth phase strategies, while almost six in 10 anticipate doing so for retirement phase portfolios.
On specific asset class allocations, 40% of respondents have already increased, or considered increasing, exposure to UK infrastructure at their most recent review – making it the second most popular asset class for increased allocation, behind only private equity.
