Master Trusts Unpacked Default Investment Strategies

This report is a technical document that examines the performance of master trust default investment strategies during periods of market volatility, particularly throughout 2024 and into 2025. It discusses the evolving nature of these strategies as they adapt to changing market conditions, including increased allocations to growth assets like equities and new private market exposures. The report outlines the implications of recent political events, such as President Trump's trade policies, on market confidence and investment strategies. It highlights the significant evolution in asset allocation, with a focus on higher equity allocations and shorter glidepaths to retirement. The document also analyzes the impact of these strategies on member outcomes, particularly as members approach retirement. It emphasizes the importance of understanding the nuances in investment strategies and their performance, especially in a volatile market environment. The report aims to provide clarity for employers and trustees in selecting master trusts that align with their investment goals.