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
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
Corporate Communications Manager
Legal & General Investment Management
T: +44 (0)7827 919568
Will Throp
Senior PR Executive
Legal & General Investment Management
T: +44 (0)7791 899779
Notes to editors
Established in 1836, Legal & General is one of the UK's leading financial services groups and a major global investor, with over £1.2 trillion in total assets under management* of which a third is international. We also provide powerful asset origination capabilities. Together, these 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. Through inclusive capitalism, we aim to build a better society by investing in long-term assets that benefit everyone.
*at 31 Dec 2022
Legal & General Investment Management
Legal & General Investment Management is one of Europe’s largest asset managers and a major global investor, with total assets under management of £1.29 trillion1. 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.
1Globally, we manage assets of £1.42 trillion or CHF 1.75 trillion as at 31 December 2021 (source: LGIM internal data as at 31 December 2021). The 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.
*at 11 Jan 2023
KEY RISKS
Past performance is not a guide to the future. The value of an investment and any income taken from it is not guaranteed and can go down as well as up, you may not get back the amount you originally invested. For illustrative purposes only. Reference to a particular security is on a historical basis and does not mean that the security is currently held or will be held within an LGIM portfolio. The above information does not constitute a recommendation to buy or sell any security. Views expressed are of LGIM as at 3 January 2023.
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In the European Economic Area, it is issued by LGIM Managers (Europe) Limited, authorised by the Central Bank of Ireland as a UCITS management company (pursuant to European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations, 2011 (S.I. No. 352 of 2011), as amended) and as an alternative investment fund manager with "top up" permissions which enable the firm to carry out certain additional MiFID investment services (pursuant to the European Union (Alternative Investment Fund Managers) Regulations 2013 (S.I. No. 257 of 2013), as amended). Registered in Ireland with the Companies Registration Office (No. 609677). Registered Office: 70 Sir John Rogerson's Quay, Dublin, 2, Ireland. Regulated by the Central Bank of Ireland (No. C173733).
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