The biggest of the consultant-run master trusts in terms of UK assets in its default, the £1.1bn Mercer Master Trust gives employer clients the option of two different third-party administrators – Aviva or Zurich, whose workplace pension platform was recently transferred to Lloyds Banking Group.
The default starts with an equity exposure of 72 per cent in the growth phase, and remains at 22 per cent at retirement, when members can transfer seamlessly into drawdown. Five-year performance in the growth phase sits above the Corporate Adviser Pensions Average (CAPA), with a below- average level of risk.
Derisking starts eight years before state pension age/ selected retirement age. Not surprisingly for a business with an investment consultancy arm, the scheme gets its investment advice in house, and the default blends funds from BlackRock, Irish Life Investment Managers, GAM, T. Rowe Price, H20, Nomura and Wellington.
Retirees have the option of retirement income advice, full financial advice or a whole of market annuity service from HUB Financial Solutions. Members can access flexible access drawdown, full and partial uncrystallised funds pension lump sum withdrawals and small pot encashment without the need to change to an alternative product.