Smart Pension, a UK workplace pension provider, has hit £5bn in assets under management and anticipates reaching the £10bn mark within three years.
The milestone has been driven by its consolidation strategy and strong organic growth, it announced this morning.
Smart Pension has expanded through a string of strategic consolidations over the last year.
In July 2023 Smart Pension acquired Evolve Pensions, another provider of UK workplace pension services. This acquisition is the latest in Smart Pension’s consolidation strategy, which now includes nine former master trusts, some of which include the Ensign Master Trust, the Welplan Master Trust, the Corpad Master Trust and the Corporate Pensions Trust.
With the acquisition of Evolve, Smart Pension’s AUM rose to over £4bn.
In July 2023 Smart Pension also signed the Mansion House Compact, a pledge to amplify investments in unlisted equities for better outcomes for UK savers. By signing the compact, Smart Pension came together with eight other signatories at the forefront of the industry, committing to achieve a minimum 5% allocation to unlisted equities through defined contribution (DC) pension funds, promoting innovative high-growth companies and bringing benefits to pension savers.
Smart Pension now serves over 1.4 million members and more than 70,000 employers, and sees regular contribution inflows of £1bn per annum. It forecasts even stronger growth in 2024 and 2025.
Jamie Fiveash, chief executive officer Smart UK, said: “Passing this milestone is a testament to our dedication to challenging the status quo in the pension industry. We’ve embraced cutting-edge technology, making a tangible difference to savers and employers alike.”
He noted that Smart Pension will continuen to focus on “strong growth, further margin improvement and continued profitability”.
“We have formed some excellent partnerships with advisers and other intermediaries,” Fiveash said, adding that Smart is now focused on continuing to build these partnerships, delivering solutions for all its clients and members.
Co-founder of Smart and group CEO Andrew Evans added that hitting £5bn AUM is a “strong recognition of Smart Pension’s success and journey to date”.
He said the milestone highlights the hard work and dedication of the team and partners who supported it.
Evans added that Smart sees “huge opportunities” for further growth in the UK and is committed to further investment in this market given the trajectory of the Smart Pension Master Trust and the regulatory tailwinds that are coming.
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