January 2022

Closed-ended funds: an underexplored route to alternative assets for DC schemes

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Dave Whitehair, Director of Institutional Business (DC), with James de Bunsen and Pete Webster, Portfolio Managers on Janus Henderson’s UK-based Multi Asset Team, make the case for closed-ended funds as a viable and useful tool for defined contribution schemes looking to gain exposure to the fast-growing alternatives asset class

Key Takeaways

  • As a permanent pool of capital, the closed-ended vehicle represents a potentially useful match for more illiquid assets, such as infrastructure.

  • There is a rapidly growing universe of closed-ended alternatives, with the potential for long-term returns linked to the real economy.

  • These highly governed vehicles offer a higher level of transparency and reporting than direct private market assets.

  • Incorporating closed-ended funds into a diversified alternatives portfolio can play an important role in supporting better outcomes for DC members.

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