Commenting on the SEI Master Trust purchase of Atlas, Michael Ambery, Partner, Hymans Robertson says:

“The announcement about SEI’s purchase of Atlas is positive news. We have anticipated a consolidation of Master Trust providers in order to reach a suitable size and scale. This is the second headline consolidation of Master Trust providers this year and a movement of well over £1bn to SEI in the purchase of Atlas. It will give SEI considerably more scale and the ability to refocus proposition and direction to continue to grow both assets under management and employers.

“The purchase was natural in the fact that Capita is the underlying administrator for both SEI and Atlas Master Trust. What is less natural is the movement of investments for members and the combination of two Master Trust Boards and operating models into one. However, we understand that this will be at no detriment to members as the transition of member investments and cost will be borne by SEI as part of the purchase. We do see that members and employers associated with Atlas, and to an extent with SEI, will want to ensure they know what this consolidation means for their day to day engagement and will want to be comfortable that the new Master Trust meets their needs for provision of services.

“Given current market activity, combined with the fact that providers are searching for these economies of scale, further consolidation is likely and there will be many more consolidations in the coming months.”