DC market update: key announcements take centre stage

In this Q3 update, we share a snapshot of the DC market.

In this Q3 update, we comment on:

• Diversified Growth Strategies Prove Resilient: Despite fluctuating equity markets, diversified growth strategies outperformed all-equity counterparts, demonstrating their potential in managing volatility and delivering stable returns.
• Positive Returns Across Asset Classes: Q3 2024 saw positive performance across most asset classes, with global equities recovering strongly from an August sell-off, and fixed income markets benefiting from central banks beginning to cut interest rates.
• Impact of UK Political Changes: The election of the new Labour government and subsequent economic policies have influenced market dynamics, notably stabilising gilt yields and boosting investor confidence in UK investment grade credit.
• Pension Consolidation Emphasised: Rachel Reeves’ Mansion House speech highlighted the importance of consolidating smaller pension schemes to achieve economies of scale and enhance investment opportunities, signalling significant upcoming changes in the pensions industry.