DC Master Trust League Table – February 2022
The Go Pensions 2022 DC Master Trust league table shows some exciting trends. Our survey covers 21 Master Trusts incorporating some 23.1 million members, across 1.1 million employer schemes. This represents around a 10% increase in employer schemes since our previous league table published just 6 months ago, a healthy growth rate.
The general trends we see here are as we forecast. Both the migration from single employer DC trusts to Master Trusts and market consolidation are as we predicted in previous insight articles. We feel this is set to continue.
| Master Trust | FUM | Previous FUM(Q3 2021) | No. Members | No. Employers |
|---|---|---|---|---|
| Aegon | £3,660,000,000 | £3,300,000,000 | 148,113 | 40 |
| Aon Master Trust | £1,900,000,000 | £1,600,000,000 | 49,000 | 26 |
| Aviva Master Trust | £7,110,000,000 | £5,966,000,000 | 369,179 | 314 |
| Cheviot | £156,300,000 | £156,000,000 | 5,000 | 68 |
| Crystal | £750,000,000 | £709,000,000 | 115,319 | 2,405 |
| Cushon (includes figures for the recently acquired Workers Pension Trust and Creative Pension Trust) | £1,500,000,000 | £985,000,000 | 400,000 | 23,000 |
| Fidelity Master Trust | £5,100,000,000 | £4,500,000,000 | 119,106 | 108 |
| Legal and General | £17,143,320,206 | £15,481,000,000 | 1,442,961 | 230 |
| LifeSight | £12,500,000,000 | £11,500,000,000 | 250,000 | 33 |
| Mercer Mastertrust | £5,900,000,000 | £4,300,000,000 | 156,737 | 64 |
| National Pension Trust | £1,257,709,530 | £1,258,000,000 | 47,332 | 164 |
| Nest | £22,300,000,000 | £19,400,000,000 | 10,700,000 | 950,000 |
| NOW: Pensions | £3,000,000,000 | £2,000,000,000 | 1,800,000 | 30,000 |
| Options | £400,000,000 | £161,000,000 | 240,000 | 4,200 |
| Scottish Widows | £1,584,433,000 | £776,000,000 | 91,948 | 22 |
| SEI Master Trust (includes figures for the recently acquired Atlas Master Trust) | £2,042,887,543 | £1,895,000,000 | 143,944 | 56 |
| Smart Pension | £2,097,000,000 | £1,830,000,000 | 905,620 | 81,537 |
| Standard Life | £5,510,214,696 | £5,458,000,000 | 205,110 | 1,204 |
| The Lewis Workplace Pension Trust* | £45,000,000 | £45,000,000 | 11,731 | 153 |
| The Pensions Trust (TPT) | £2,400,000,000 | £2,280,000,000 | 288,000 | 2,600 |
| The Peoples Pension | £17,400,000,000 | £15,200,000,000 | 5,700,000 | 100,000 |
* Updated metrics were not available from these master trusts at the time of publication. The figures shown are the same metrics as previously published.
Continuing Consolidation
Since our last published master trust league table we have seen a further 2 master trusts consolidate. SEI’s acquisition of the Atlas master trust and Cushon’s acquisition of Creative.
SEI now move from 19th to 13th position in our league table (by funds under management) and Cushon from 20th to 16th.
Our research tells us to expect further consolidation throughout 2022, with some master trusts actively seeking acquisition opportunities. In an environment where size matters, we don’t feel this is surprising. However, which ones will buy and which will sell is requires a bit of speculation … watch this space.
Proposition Developments
As we move through 2022, master trusts recognise the current opportunity in the ‘small schemes’ market. Small schemes (defined as those with assets under £100m) are now required to carry out value for member assessments (read more in our previous insight article). It has been suggested that this requirement will be extended to larger schemes in due course. The inevitable outcome is that more single employer trust schemes will move to master trusts.
To make the most of this opportunity we are seeing master trusts invest and innovate to improve value for members. Some master trusts are developing financial wellbeing and support tools for members. They’re using technology to allow members to tailor their investment strategies to their own ESG beliefs. Great stuff in a rapidly developing ethical investment world.
A lot has happened in the master trust word over recent years. Never before has there been more differentiation between them. Authorisation created a more level playing field with regard to governance and capital adequacy, but the market has driven innovation. There is almost certainly a master trust to suit every employer.
If you would like to hear more about our latest research in the master trust market, get in touch with Tina on 020 8213 5860.