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What does the future hold for Diversified Growth Funds?

What does the future hold for Diversified Growth Funds?

02 Jun 2025

Many Diversified Growth Fund (DGFs) have seen significant outflows over recent years, especially from DB pension scheme investors.

In this paper, we consider the extent of the outflows, the drivers behind this, and consider what the future holds for these funds. We also consider whether outflows could have acted as a drag on fund returns and review actions DGF investors should take.

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