The new analysis, covering 26 million members, provides the first comprehensive baseline of how more than £200 billion in defined contribution (DC) master trust assets are allocated. It represents nine in 10 master trusts and three-quarters of the market by assets.
TPR has published the data as part of efforts to improve member outcomes, support economic growth, and prepare the market for the introduction of new value for money requirements helping to shift the focus in DC schemes from cost to value.
The data, collected from 25 master trusts, demonstrates that larger master trusts are those most substantially invested in private markets.
It shows that:
25 master trusts have invested a total of £5.3 billion in unlisted UK private markets.
60% report some unlisted private market exposure – totalling £12.3 billion – while around 20% report at least 5% of assets are invested in unlisted private markets.
half (50%) of members within default arrangements in the MTs surveyed are in defaults which invest at least 5% of their assets in unlisted private markets.
Richard Knox, TPR’s Executive Director, Strategy, Policy and Analysis, said: “TPR does not tell schemes how to invest but we do challenge all schemes to deliver value for money. We want to see well-governed schemes confidently considering a broader range of investments, with potential to improve returns for members.
“We expect trustees and administrators to review their strategy, governance arrangements and diversification in line with our private market guidance. Where schemes cannot demonstrate value, trustees should consider consolidation in members’ interests.”
Collection of asset allocation data by TPR is envisaged to run annually until new legislative value for money (VFM) disclosure requirements are introduced under the Pension Schemes Act 2026 in 2028.
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