Pensions - Articles - Master Trust Default Fund Performance Review


The rise in the use of Master Trusts over the past 6 years has been phenomenal, going from a relatively niche option serving the needs of smaller employers, to often being seen as the DC vehicle of choice today.

 by Jesal Mistry, Head of DC Scheme Design and Provider Evaluation at Hymans Robertson

 Since the introduction of auto enrolment in 2012, membership of Master Trusts has increased from 270,000 in early 2012 to almost 10 million this year1. Master Trusts now account for 42% of the workplace pensions market2, and that figure is likely to continue to rise in coming years.

 Following on from the first edition of our Master Trust Insights report last year, we wanted to again compare the investment performance across the biggest providers’ default funds. Recognising that there are distinct phases of a retirement savings journey which require a different investment approach, our latest review compares performance at each of these phases, which include:

 Growth phase (30 years to retirement)
 Consolidation phase (5 years to retirement)
 Pre-retirement phase (1 year to retirement)

 1The Pensions Regulator 2018
 2The Pensions Regulator 2018 

 Master Trust Default Fund Performance Review

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