Bridging the void
How we ensure service continuity for members transitioning into the SEI Master Trust.
Last year was a big year for the SEI Master Trust. In November, we completed our acquisition of the National Pensions Trust (NPT), growing our assets under management to nearly £4B.1
We also made some exciting commitments to the market. Already ranking amongst the UK’s top investment-led master trusts, we’ve now pledged to become one of the UK’s largest master trusts by 2031.2
Lessons from a past integration
Let’s turn to our acquisition of the Atlas Master Trust in 2021. To ensure the efficient transition of all underlying schemes, our Client Relationship Management team embarked on a two-year exercise, designed to leave no stone unturned. We are able to use the experience we have gained so far to ensure that the next consolidation goes as smoothly.
As our master trust consolidation continues at SEI, we are able to use the experience we have gained so far to ensure that the next consolidation goes as smoothly. Our ‘lesson learned’ discussions from our first consolidation highlighted three important insights.
Client engagement requirements
Firstly—know that voluntary consultation with clients/participating employers takes time. Whilst using the triggering event is always an option for consolidation, we wanted to ensure that we took our clients with us on the journey, rather than impose change on them.[ Within any master trust there is a range of participating employers with a variety of governance styles and interest in their pension arrangements.] As we know many employers chose a master trust arrangement to reduce the pressure of governance, so it was important to engage with clients early and often to ensure their understanding of, and support for, the process. We needed to be very clear on the benefits of change for both the members and their employers, initially and over the longer term, and ensure a consistent message. Regular communication and engagement from the very first messages, in addition to managing the BAU activity for these clients, was time consuming but created significant payback in terms of ensuring that over 95% of clients voluntarily joined the consolidated SEI Master Trust.
Governance from trustee
We needed to ensure we had the right governance framework in place from Day 1, to avoid any conflicts of interests, so that the Trustee could be confident it was - at all times - acting in the best interest of the members of both Master Trusts. So we setup a Merger sub-committee from the point of acquisition, appointing the former Chair of the acquired Master Trust as Chair of that committee. The Merger sub-committee was responsible for comparing and contrasting every aspect of the two Trusts, from governance and administration, through to communications and investments. It could then make ‘Best of Breed’ recommendations to the Board, with all parties confident the needs of all members were being fully represented, and that they would all benefit from ‘the Best of Both’ within the consolidated master trust.
Liaising with the third-party administrator throughout
Master Trust Consolidation can bring some great benefits for clients and members. The economies of scale alone can bring significant cost savings which can then be passed directly onto the members. But the promise of ‘good things to come’ would soon be forgotten if our service levels had slipped in the meantime. So it was hugely important to plan ahead and allocate resources accordingly. To achieve a good outcome for all, we ensured ‘business as usual requirements’ were delivered by our core administration team, with client specific projects and new client implementations handled by a separate and dedicated resource. That enabled us to focus on consolidating the two Trusts, without fear of disappointing either new or existing clients and members in the process.
Learn more about Master Trust
Providing 360 degree governance to DC schemes.
1Source: SEI, as at 31 December 2023.
2‘Standing the test of time: Three reasons the SEI Master Trust has what it takes in an increasingly competitive market’, SEI, 17 November 2023.
Important Information
This is a Marketing Communication. This webpage has been created in relation to the SEI Master Trust, an occupational pension scheme which is authorised by the Pensions Regulator. The trustee of the SEI Master Trust is SEI Trustees Limited. SEI Trustees Limited has appointed SEI Investments (Europe) Ltd (“SIEL”) as investment adviser to the SEI Master Trust and pursuant to its investment advisory agreement. This information is issued and approved by SEI Investments (Europe) Ltd (“SIEL”) 1st Floor, Alphabeta, 14-18 Finsbury Square, London EC2A 1BR. This webpage and its contents are directed at persons who have been categorised by SIEL as a Professional Client and is not for further distribution. SIEL is authorised and regulated by the Financial Conduct Authority. While considerable care has been taken to ensure the information contained within this webpage is accurate and up-to-date and complies with relevant legislation and regulations, no warranty is given and no representation is made as to the accuracy or completeness of any information and no liability is accepted for any errors or omissions in such information or any action taken on the basis of this information. The information in this webpage is for general information purposes only and does not constitute investment advice. You should read all the investment information and details on the funds before making investment choices. Please refer to our latest Prospectus (which includes information in relation to the use of derivatives and the risks associated with the use of derivative instruments), Key Investor Information Document, PRIIPs KID, Summary of UCITS Shareholder rights (which includes a summary of the rights that shareholders of our funds have) and the latest Annual or Semi-Annual Reports for more information on our funds, which can be located at Fund Documents (https://seic.com/en-gb/fund-documents). And you should read the terms and conditions contained in the Prospectus (including the risk factors) before making any investment decision. If you are in any doubt about whether or how to invest, you should seek independent advice before making any decisions. The UCITS may be de-registered for sale in an EEA jurisdiction in accordance with the provisions of the UCITS Directive. Past Performance does not predict future returns. Investment in the range of the SEI Master Trust’s funds are intended as a long-term investment. The value of an investment and any income from it can go down as well as up. Investors may not get back the original amount invested. This document and its contents are for Institutional Investors only and not for further distribution.
This case study describes the attributes of a specific client that SEI has determined is comparable based on objective criteria, including organisational goals, assets size and industry sector. Any discussion of specific asset allocations is intended to help clients understand SEI’s customised investment approach, and should not be regarded as a recommendation. Information concerning SEI’s recommendations over the last year is available on request. The information express herein represents the current, good faith views of SEI at the time of original publication, and has not been updated.