Press releases

L&G Mastertrust reaches £20bn AUM milestone

The L&G Mastertrust is the largest commercial master trust in the UK market, with 275 participating employers and over 1.8 million members [1]

23 Feb 2023

Full press release

Legal & General (‘L&G’) today announces that the L&G Mastertrust has passed £20bn in assets under management (AUM)2 , making it the first commercial master trust in the UK to reach the milestone.

Established a decade ago as one of the first master trusts in the UK, the L&G Mastertrust today supports 275 participating employers, looking after the retirement savings of over 1.8 million members. In the past two years alone, the Mastertrust’s AUM has grown by 67%, the number of participating employers by 53% and the number of underlying members by 50%3.

Since the introduction of auto-enrolment in 2012, the master trust market has continuously evolved to meet the investment, cost and governance needs of employers and employees, aiming to combine the benefits of scale and flexibility to help deliver the retirement outcomes that members deserve.

The L&G Mastertrust’s investment proposition seeks to meet the changing requirements of members both up to and into retirement. Supported by Legal & General Investment Management (LGIM), the largest UK-based asset manager, the L&G Mastertrust has prioritised sustainable returns4 , flexible decumulation options and increasing the role of private markets across the Mastertrust’s default funds to achieve greater diversification and potential sources of returns across asset classes.

At the same time, the L&G Mastertrust has prioritised the member experience in the administration of their pensions, supporting employers and members through challenging periods such as the Covid-19 pandemic and the current cost-of-living crisis to prioritise resilience, long-term retirement outcomes for the UK population. 

These objectives are underpinned by the scheme’s robust governance, led by the Board of Trustees. Earlier this month, Legal & General announced the appointment of Robert Waugh as the new Chair of Trustees for the L&G Mastertrust5.

Legal & General supports over 4.7 million members across its Defined Contribution (DC) business as the largest provider in the UK6.

Stuart Murphy. Co-Head of Defined Contribution at Legal & General Investment Management (LGIM): “We’re proud that so many clients have put their faith in us over the years by choosing to join the L&G Mastertrust. Becoming the first commercial Mastertrust to reach £20bn in AUM is a real achievement for the scheme, testament to the hard work of our investment team, the scheme’s administrators and the board of trustees, who have delivered excellent outcomes across the day-to-day running and governance of the Mastertrust.

“We believe our scale enhances our potential to offer greater financial stability, further investment in services and economies of scale which can help to deliver value for members. Looking ahead, our ambition is to continue to build on our scale, improving retirement outcomes and financial wellbeing for members, while contributing to a better future through responsible investing.”

Dermot Courtier, Independent chair of the L&G Mastertrust: “This latest milestone follows significant announcements from the L&G Mastertrust Trustees in recent years, including the launch of a Member Advisory Panel, which invites a group of members to meet quarterly with Trustees and provide feedback, as well as the Mastertrust’s public Net Zero commitment. The Mastertrust Employer Group, which brings up to 100 employers together every quarter, celebrates its 10-year anniversary this year.”

[1] Figure as at 31 January 2023.

[2] Figure as at 31 January 2023.

[3] See press release here, published 12 January 2021.

[4] See the Mastertrust’s TCFD report here, published 10 November 2022.

[5] See the announcement of Robert’s appointment here, published 7 February 2023.

[6] Figure as at 31 January 2023.

[7] LGIM internal data as at 30 June 2022. These figures include assets managed by LGIMA, an SEC Registered Investment Advisor. Data includes derivative positions.

Lucy Ausden

Lucy Ausden

Corporate Communications Manager

Legal & General Investment Management

T: +44 (0)7827 919568

Email Lucy Ausden

Will Throp2

Will Throp

Senior PR Executive

Legal & General Investment Management

T: +44 (0)7791 899779

Email Will Throp

Notes to editors

Established in 1836, Legal & General is one of the UK's leading financial services groups and a major global investor, with £1.2 trillion in total assets under management1 of which 40% is international. We have a unique and highly synergistic business model, which continues to drive strong returns. Legal & General provides powerful asset origination and management capabilities directly to clients, which also underpin our leading retirement and protection solutions. We are a leading international player in Pension Risk Transfer, in UK and US life insurance, and in UK workplace pensions and retirement income. Our purpose is to improve the lives of our customers and create value for our shareholders. Through inclusive capitalism, we are investing in long-term assets, such as real estate and infrastructure, that can help build a better society for the future.

1Data as at 31 December 2023.

LGIM is one of Europe’s largest asset managers and a major global investor, with total assets under management of £1.2 trillion1 ($1.5tn, €1.3tn, CHF 1.2tn). We work with a wide range of global clients, including pension schemes, sovereign wealth funds, fund distributors and retail investors.

For more than 50 years, we have built our business through understanding what matters most to our clients and transforming this insight into valuable, accessible investment products and solutions. We provide investment expertise across the full spectrum of asset classes including fixed income, equities, commercial property, and cash. Our capabilities range from index-tracking and active strategies to liquidity management and liability-based risk management solutions.

1Data as at 31 December 2023. Data combines assets under management by LGIM in the UK, LGIMA in the US and LGIM Asia in Hong Kong. Assets under management include securities and derivatives positions.