Master Trusts Unpacked Default Investment Strategies

This report is categorized as a research report and presents an analysis of master trust default investment strategies, focusing on their performance during recent market volatility and throughout 2024. It discusses the evolution of these strategies, particularly in response to changing market conditions influenced by political factors, such as President Trump's trade policies. The report aims to provide insights for employers and trustees who are evaluating master trusts, highlighting the nuances in default design approaches and their performance. It outlines key themes in the evolution of investment strategies, including increased allocations to equities and private markets, as well as shorter glidepaths to retirement. The document also examines the impact of market fluctuations on master trust performance, emphasizing the need for a diversified approach to mitigate risks associated with concentrated equity positions. Overall, the report serves as a resource for understanding the dynamics of master trust investments and their implications for member outcomes.