The Pensions Regulator (TPR) has revealed data on the investment trends of master trusts in the UK, highlighting that the larger schemes are the most substantially invested in private markets.

Its study included 25 master trusts as at 31 December 2025, representing 74 per cent of all master trust assets and 26 million members.

The data showed that the master trusts surveyed had invested a total of £5.3bn in unlisted UK private markets.

Three fifths (60 per cent) had at least some exposure to unlisted private markets, totalling £12.3bn.

Around 20 per cent reported at least 5 per cent of their assets were invested in unlisted private markets.

Half (50 per cent) of members within master trusts’ default arrangements were in defaults that invested at least 5 per cent of their assets in unlisted private markets.

A total of 17 pension schemes and providers signed the Mansion House Accord in 2025 to have a minimum allocation of 10 per cent to private markets across all main default funds in their defined contribution schemes by 2030, with at least 5 per cent going to UK private markets.

TPR’s survey data covered 12 of these signatories, with the regulator highlighting that the figures were not a reflection of progress towards the Mansion House Accord.

“TPR does not tell schemes how to invest but we do challenge all schemes to deliver value for money,” commented TPR executive director, strategy, policy, and analysis, Richard Knox.

“We want to see well-governed schemes confidently considering a broader range of investments, with potential to improve returns for members.

“We expect trustees and administrators to review their strategy, governance arrangements and diversification in line with our private market guidance.

“Where schemes cannot demonstrate value, trustees should consider consolidation in members’ interests.”

TPR is expected to collect annual allocation data annually until the new value for money disclosure requirements are introduced as part of the Pension Schemes Act in 2028.

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