Corporate Adviser, Master Trust & GPP Defaults report – Key findings
In its 2024 Master Trust and GPP Defaults Report, Corporate Adviser Intelligence looks back on a ”very strong year” for master trusts, during which the global economy stabilised and the value of defined contribution (DC) assets held within multi-employer schemes increased by £113bn.
The report, compiled using data received directly from providers, finds that multi-employer master trust and Defined Contribution (DC) schemes added more than a million active members in 2023, with an additional 56,436 employers choosing to use a multi-employer DC provider.
The report also provides a summary of GPP and Master Trust propositions, including TPT’s. It references the DC master trust’s “more adventurous” investment style – allocating more than 85% of the fund to overseas equities, with the balance invested in property, private equity, commodities and sustainable opportunities – which, along with a comparatively long glidepath of 19 years from SPA, has helped TPT to deliver returns for younger and older savers that are comfortably above the CAPA average.
It also credits TPT’s strong approach to environmental, social and governance (ESG) factors, as it excludes a number of sectors and actively invests in companies that are tackling environmental issues.
John Greenwood, Head of Research at Corporate Adviser Intelligence, says the report shows that the DC pensions sector is “gaining real momentum”, with growth of more than £110bn in 2023. “The report also shows that the UK DC sector is, despite some perceptions to the contrary, more consolidated than its Australian counterpart, if single-employer trusts are left to one side.
“On investment strategy, the report shows there is still a wide range of approaches being taken to asset allocation at all stages in the savings journey.
“When it comes to evidencing member engagement, there are again big differences between providers, a fact that highlights the importance to employers of making the right choice when selecting their pension provider.”
Download the report: CA Master Trust & GPP Defaults report - key findings - Corporate Adviser (corporate-adviser.com)
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