DC master trust league table 2021 ~ H1

In August 2020 we published the first on-line interactive DC master trust league table. The table outlines key metrics for the ‘commercial’ master trusts. We are now pleased to update the DC master trust league table with data provided by the master trusts during January 2021.

The table can be sorted on your screen alphabetically, by number of participating employers, number of members or by the £ value of funds under management (FUM) by clicking the appropriate heading.

Where a ‘commercial’ provider is not referenced in this table, we have not been able to obtain permission for the data to be shared publicly.

* Updated metrics were not available from these master trusts at the time of publication. The figures shown are the same metrics as previously published.

Market commentary

In the 6 months since we last published the data, FUM have increased by around £18.5bn. In part thanks to the overall increase of employers moving into the master trust market of around 2.5%, accounting for an increase in member coverage of around 3%.

Our research tells us that there are now three clear areas of differentiation between master trusts; at retirement support, member technology and approach to ESG.

What’s next for DC master trusts?

With predictions of consolidation in the master trust market, it’s not difficult to predict from the data we hold which master trusts are ripe for acquisition. And maybe the market is ready for a shake up. The data tells us there is no change in the top nine master trusts by FUM and no change in the top fourteen by number of employers since the summer.

We are also hearing that some of the master trusts are revisiting their target markets.  The upcoming new ‘value for members’ assessments’ for small own trust DC schemes (under £100m) present the next wave of growth opportunity for DC master trusts. This view is supported by Pensions Experts’ recent article on master trust competition

We have up to date whole of market data and meet with master trust providers regularly. If you are interested in understanding more about master trusts we would be pleased to share our thoughts with you. Get in touch with Tina Oversby on 020 8213 5860 to discuss your master trust projects.

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