Harvi Rana, director at Isio
Professional trustee firms held a market share of 43% in 2024, up from 39% of DB pension schemes in 2023, according to a new report.
The 10 largest professional trustee firms in the UK now manage over 2,400 pension schemes with a combined asset value of over £1trn, according to a new report from pension advisory firm Isio.
The 10 firms saw a year-on-year increase in both trustee directors and revenue growth.
The number of trustee directors increased from 320 in 2023 to 350 in 2024, while average revenue was up 15%, marking the fifth consecutive year of double-digit revenue growth.
Harvi Rana, director at Isio, said the research would support recent action from The Pensions Regulator which plans to introduce a new regulatory framework for oversight of professional trusteeship.
She said: “As DB schemes mature and reach critical phases in their individual journeys and endgame planning, the involvement of a professional trustee is clearly proving instrumental to securing the best possible future for these schemes.
“As a result of the success of professional trustees, particularly within the ten largest firms in the industry, they have secured a position of integral importance in the UK pensions market, and their extensive operations are now attracting increased attention.
"The influence of professional trustees will continue to grow, and the regulator’s intentions to introduce a new oversight framework reflects the increasingly key role they will play in safeguarding and securing the future of DB schemes.”
The trend for corporate sole trusteeship was a key driver of growth for the professional trustee sector with corporate sole trustee appointments now accounting for 48% of all appointments.
Professional corporate sole trustees now oversee approximately £70bn in DB pension assets, with the largest scheme currently around £3.4bn in assets.
Isio found 50 existing trustee appointments moved to a sole corporate trustee in 2024 and projects that corporate sole trustee roles could represent almost 70% of all appointments in the next five years.
