SEI has completed the acquisition of the National Pension Trust (NPT), a UK master trust with more than 60,000 members, from XPS Pensions Group.  

The deal, which was initiated in the summer, had a total cash value of £42.5m but was broken down into an initial payment of £35m and a deferred payment of up to £7.5m based on SEI’s financial performance over the next few years, it was announced.

As expected, SEI’s transaction closed before the year-end and has now successfully acquired NPT, it added.

The SEI Master Trust, an independently assured defined contribution (DC) provision, represents more than 150 clients and has approximately £2bn in assets under management.

Being one of the first commercial UK master trust providers, SEI has had clear goals for the past two years to become the market leading master trust with the size and scale to deliver stability and secure financial futures for its members.

Steve Charlton, SEI’s managing director of defined contribution, EMEA, and Asia, said: “Our acquisitions of the National Pensions Trust and the Atlas Master Trust in 2021 bring us closer to those goals.”

The move also follows recent expectations of an accelerated consolidation of the master trust market from the current authorised master trusts, strengthening the current push from the UK government.  

“Industry consolidation, supported by tTe Pensions Regulator, reduces the number of smaller and sometimes less resilient schemes, bringing greater stability to the pensions landscape. Greater stability can strengthen propositions, and we believe our proposition has gone from strength to strength. Employers choosing the SEI Master Trust and their employees will benefit from this greater stability,” shared Charlton.

XPS, a pension consulting business undertaking pension administration for more than 1 million members, will provide continued support to NPT and SEI, fostering a strategic partnership.

The addition of NPT to the SEI Master Trust reinforces SEI’s commitment to the UK DC market, enhances further industry consolidation, while also strengthening the firm’s continued delivery of best-of-breed services.

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