Master Trusts Unpacked Default Investment Strategies

This report is the fifth edition of 'Master Trusts Unpacked: Default Investment Strategies' and focuses on the evolution of master trust investment strategies as of February 2026. It outlines how private markets are increasingly being integrated into default strategies, with various providers adopting different approaches to implementation. The report emphasizes the importance of understanding the nuances of default design for employers and trustees reviewing master trusts. It notes that while historical performance is a consideration, it should not overshadow the overall value proposition of master trusts. The report discusses the performance of master trusts, highlighting that those with higher equity exposure, particularly in technology and AI sectors, have delivered the best returns. Additionally, it examines the impact of asset allocation decisions, including the role of tactical asset allocation and the performance of various asset classes over the past year. The report concludes by addressing the variations in performance and risk for members nearing retirement, emphasizing the critical nature of performance during this phase.