The Bluesky Pension Scheme

Run by Evolve Pensions, the £346m Bluesky Pension Scheme has already played a role in the sector consolidation story, having taken over two smaller master trusts – the Wessex Pension and Pensions Umbrella trusts.

This innovative scheme provides every active member with a no cost life assurance benefit via the Bluesky Life Assurance Trust (TBLAT). Called 15LC, the benefit grants the nominated beneficiary of any actively contributing Bluesky member that dies under the age of 75, a tax-free lump sum of £1,500.

BlueSky’s target date default fund offering invests in ESG- screened funds, with assets managed by AllianceBernstein, LGIM and Mobius Life. Its growth phase asset allocation strategy is currently at the aggressive end of the spectrum, with 87 per cent exposure to equities, reducing to 22 per cent at state retirement age/ selected retirement age. This aggressive approach has paid off in the benign markets of recent years, giving it amongst the highest annualised five-year growth phase returns of all the schemes in the sample, more than 1 per cent above the Corporate Adviser Pension Average (CAPA) Index. However, to get there it has also experienced higher than average growth phase volatility over five years.

Retirees are given access to FIL Retire Direct (formerly Annuity Direct Ltd), or can take an open market option annuity, or access a drawdown option through The Crystal Trust, which is another product run by Evolve Pensions.

Asset Allocation charts

Data as of 31.03.18
BenchmarkComposite benchmark
Alternatives offered to default21 self-select funds
Charging structure for membersAMC - varies by employer
Charging structure for employersOne-off fee of £450 plus VAT for initial signup and ongoing support
Total assets as at 31.3.18£346,430,160
Active members in default12,643
% active members in default88.26%
Deferred members22,943
Transfer out to draw income?Yes
Approach to non-advised drawdownAlready offers it
Does default invest in ESG-screened funds?Yes
Scheme administratorEvolve Pensions Limited
Scheme investment adviserDean Wetton Advisory Limited
Asset managers usedAB Global, Mobius Life and LGIM
1 Year3 Year5 Year
Annualised returns before costs (%)1.376.797.8
Annualised risk4.67.17
Sharpe ratio0.250.921.07
CAPA Index +/-–0.541.350.56
1 Year3 Year5 Year
Annualised returns before costs (%)3.658.339.73
Annualised risk6.38.88.5
Sharpe ratio0.550.911.11
CAPA Index +/-