Aviva’s defined contribution (DC) master trust has passed £15bn in assets under management, it announced today, as providers seek to meet the government’s £25bn ‘megafund’ target.
The Aviva Master Trust is one of the largest commercial DC funds in the UK, with more than 500,000 members and 550 employers.
The milestone comes as policymakers push for greater consolidation in the workplace pensions market. Under the government’s “megafunds” plan, set out in May’s Pensions Investment Review, providers are expected to reach at least £25bn in their default arrangements by 2030.
Aviva said it was well placed to meet those requirements. A spokesperson told Pensions Expert that the master trust welcomed the proposals, which would help get more savers into larger schemes that can offer better value and more opportunities for productive investment.
The Pension Schemes Bill, currently going through parliament, will set out a legislative framework for this consolidation agenda. It includes confirmation that pension providers can meet the scale requirement by combining master trust and group personal pension (GPP) assets if they follow the same strategy, under the so-called “main scale default arrangement”.
The Aviva spokesperson said assets across its master trust and GPP totalled more than £25bn, meaning it already meets the scale requirement.
Earlier this year, Aviva launched a “guided retirement solution” for master trust members drawing a pension. This development also reflected government policy, this time for DC providers to offer default retirement options for members.
Among Aviva’s other recent developments are a career break tool to help members model the impact of time out of work, and a Sharia lifestyle investment strategy offering a derisking option.
The master trust has also refreshed its governance this year, appointing Chris Noon as chair of its independent governance committee, alongside three new independent trustees.
Geoff Marchment, head of master trust development at Aviva, said: “Scale matters – especially when harnessed to benefit savers through strong governance, responsible investment, and practical tools that empower confident decision-making.”
Noon added: “This significant milestone… reflects the confidence our employers and members place in us and offers even greater opportunities to deliver meaningful value at scale.”
