Mercer is the latest master trust to receive authorisation from The Pensions Regulator. This brings the total number of authorised master trusts to 11, with up to 30 applications still pending.
Other authorised trusts include two master trusts from both LGIM and Standard Life, the LifeSight Trust (offered through Willis Towers Watson), Fidelity, TPT Retirement Solutions, The Crystal Trust and the BlueSky Pension Scheme.
Mercer’s Master Trust remains the biggest of the consultant-run master trusts, in terms of assets held within its default fund. It is used by 36 different employers.
According to the latest According to the laters information in the Corporate Adviser Master Trust and GPP defaults report, this master trust currently holds £1,425m assets under management.
The schemes gets its investment advice in-house and the default funds blends funds from 14 different asset managers, including BlackRock, Nomura, UBS, Wellington, PIMCO and T Rowe Price.
Master trust chairman Alan Pickering said: “This authorisation will help improve the outcomes for both members and participating employers.
“As trustees, we do not regard this as job done. Authorisation is an event, while good governance must be an ongoing process.”
Master trusts had until the end of March to apply for authorisation, although a short extension was granted to 10 providers.
Those that don’t obtain this authorisation will have to be wound up, with members transfers to an authorised schemes. It is estimated that more than 40 schemes have exited or triggered their exit from the master trust market, according to the TPR’s own figures.