Legal & General Investment Management – WorkSave Pension Mastertrust

LGIM’s long-term position as a provider of workplace schemes for larger employees has seen it grow the assets on its master trust platform to over £4.7bn, of which £1.372bn is invested in the default.

The Multi-Asset Fund default operates a diversified and relatively cautious strategy through the growth stage, with a 38 per cent allocation across overseas and UK equities, which is maintained right the way through the glidepath to retirement. Through the growth phase five-year annualised returns are just below the Corporate Adviser Pensions Average (CAPA) Index, although they were achieved with a lower level of risk than the majority of providers. The maintenance of equity exposure through the glidepath saw the LGIM default out- perform most of its peers when analysing savers five years from state pension age.

All funds are in-house although members can also select from over 120 self-select funds if they are in the Mastertrust Shared governance arrangement, or a narrower self-select range of 17 funds if not. Currently 96.8 per cent of members are in the default.

Members can draw income without transferring out of the scheme and LGIM has recently started to deliver an at retirement advice solution for members with LV=.

Asset Allocation charts

Data as of 31.03.18
BenchmarkABI UK Mixed Investment 40%-85% Pension Sector
Alternatives offered to default120 self-select funds if in the Mastertrust Shared governance arrangement or a narrower self-select range of 17 funds
Charging structure for members0.5% AMC
Charging structure for employersNone
Total assets as at 31.3.18£1,372m of the £9,030.9m Multi-Asset Fund invested through master trust. Total assets on master trust £4,749m
Active members in default423,447
% active members in default96.8%
Transfer out to draw income?No
Approach to non-advised drawdownAlready offers it
Does default invest in ESG-screened funds?We may introduce it within the next 2 years
Scheme administratorLegal & General
Scheme investment adviserDean Wetton Advisory
Asset managers usedLGIM
1 Year3 Year5 Year
Annualised returns before costs (%)
Annualised risk4.87.17
Sharpe ratio0.350.900.96
CAPA Index +/-0.191.68-0.01
1 Year3 Year5 Year
Annualised returns before costs (%)
Annualised risk4.87.17.0
Sharpe ratio0.350.900.96
CAPA Index +/--0.530.03-1.27