Returning to the Core : Rediscovering a Role for Real Estate in Defined Contribution Pension Schemes

The objective of the research was to analyse and evaluate the role of real estate in the UK's defined contribution (DC) pensions market in relation to auto-enrollment – the new system of pension scheme provision for private sector employees in the UK, which is being phased in by all employers between October 2012 and 2018. The most important feature of auto-enrollment schemes is the ‘default fund', which is the multi-asset investment strategy designed for the majority of members who do not wish to make investment decisions.The research presents what the authors believe is the first comprehensive independent academic study of its kind that investigates the role of real estate in the new world of auto-enrollment. From our research, it was apparent that although there is clear evidence that real estate is being incorporated as a core (significant separate) asset class in default funds, to fully harness the role real estate can play, DC and real estate professionals need to build a better mutual understanding of their respective markets and objectives