Professional Trustees become the governance norm, overseeing £1tn of DB assets across more than half of UK DB schemes

Rapid growth in the Professional Trustee (PT) market has given way to consolidation according to LCP’s latest annual Sole Mates report, released today.

LCP’s sixth annual survey of the key players in the Professional Trustee and Defined Benefit pensions market highlights that PTs oversee c £1trillion of DB scheme assets and are involved in 53% of schemes. Of the 47% of schemes without a PT, the majority have assets of less than £50m with potentially limited budgets available to appoint a PT.

The report highlights that while the amount of assets under management has remained stable, the figure masks considerable movement beneath the surface of the market. Professional Trustee firms are increasingly playing to their own strengths and developing distinct positions with some choosing to focus heavily on PCST appointments and others provide a broader mix of offerings. Similarly with scheme size some firms are weighted towards smaller schemes, while others focus on larger and more complex appointments.

Professional Trustee firms are also fiercely navigating a growing share of a shrinking market, and even where appointment numbers look flat, holding that market share demands constant new business activity, and reinvention.

Professional Corporate Sole Trusteeship (PCST) remains the main growth driver, with 38% of new appointments going straight to, or converting to, a PCST. Over £90bn of DB assets are looked after by a PCST, which has grown by over £30bn since 2023. 16 of these appointments have assets under management of over £1bn. In the past six years, PCST appointments have more than doubled now totalling 1,260. The size of the largest PCST appointment has grown by nearly 50% in assets this year to over £4bn.

Other key highlights of the analysis include:

• Of the 181 Professional Trustee appointments won since 1 June 2025, LCP data suggests that 110 relate to schemes with no previous PT or PCST in place.
• 18 firms now account for the vast majority of appointments, with the three largest firms looking after nearly 1200 schemes between them. The market isn’t converging into a single winning model. Instead, different firms continue to succeed in different parts of the market, likely reflecting differences in business model, structure and proposition.
• 40+ switches between Professional Trustees firms this year, with PCST switches nearly triple of the previous year. Competition for appointments has never been fiercer.
• The survey asked PT firms what sponsors looked for in a PCST. Time saving was the top response followed by less sponsor management required and cost saving.
• The continued growth of PCST amongst larger schemes suggests its appeal extends beyond size alone. Governance efficiency, clear accountability, speed of decision-making and access to professional resources are important considerations when selecting a governance model.

Nathalie Sims, LCP Partner and report author, commented: “If there’s one key takeaway across six years of this report, it’s that Professional Trusteeship has moved from a governance option to the default. The real story now is what Professional Trustee firms do to earn and keep their place within it. With fewer than half of UK DB schemes now remaining without a Professional Trustee, firms are competing for a shrinking pool of opportunities. Underlying growth is also being offset by scheme attrition as the number of DB schemes has fallen by around a third since 2012.

Holly McArthur, Head of Sole Trusteeship at LCP and report author, added: “The biggest change we have seen over the period is the innovation in Sole Trustee delivery. From improved governance processes via tech, to developing team structures to best service this unique type of appointment. This evolution is no surprise given the amount of pensions assets that are now being stewarded by PCST, with schemes over £4bn in size opting for this governance approach.”

Ben Gunnee, The Pensions Regulator’s Executive Director, Market Oversight, said: “Strong governance is essential to good member outcomes. As the market continues to evolve, professional trustees must be able to demonstrate independent decision-making, effective management of conflicts and clear accountability, giving members confidence that their interests come first.”