Master Trusts: Default investment strategies

Master Trust default investment strategies during market volatility  

Whilst last year equity markets exceeded expectations; we have seen volatility increase dramatically in 2025 as President Trump’s seesaw approach to trade policy has impacted market confidence.

Tariff decisions have the potential to bring material change to the global order in a way that could have significant consequences for investment strategies and how they are best implemented. In addition, increased incentives to allocate to private markets and invest in UK private markets has, and is likely to, continue to influence strategic allocations going forwards.

This report offers a look at the performance of master trust default strategies both over recent periods of market volatility and throughout 2024.

For employers and trustees alike, who are reviewing or selecting a master trust, this report aims to shed light on the nuances of default design approaches and their performance at a time where master trusts are evolving their investments strategies to add higher allocation to growth assets like equities.

What’s inside? 

• As members approach retirement, some follow a smooth glidepath whilst others get a bumpy ride.
• All master trusts are integrating Responsible Investment into their default strategies. At the end of 2024, 95% had climate integrated equity in their default.
• Most master trusts still in the process of building up allocations to provide markets but there is a big variation in size, costs, and type of investment.