Run by BBS Consultants and Actuaries, the SuperTrust UK Master Trust was established in 2005. The scheme offers a low-cost online version for employers wishing to self serve, or a fully supported bespoke option. The bespoke version allows members to access fund values, change investments and model projections through its 4myplan portal.
It offers a flexible charging structure the most expensive configuration of which is as low as all but one other scheme in the sample.
The default’s cash-targeting strategy has 100 per cent exposure to equities, boosting it to the top of the performance rankings in this report. Benign markets have rewarded the above average level of risk the fund has taken, although members have been on a bumpier ride than those in other defaults, with the default experiencing the highest top-to-bottom price variance in all but one of the five calendar years for which data was gathered.
The default operates a derisking timetable of 15 years, with the glide path endpoint asset allocation of 100 per cent cash.
| SCHEME STRUCTURE | |
| Benchmark | Composite benchmark |
| Alternatives offered to default | The default offers three options - cash, drawdown and annuity. 13 self select options available. Full LGIM platform available on evidence of sophisticated investor status or with financial advice |
| Charging structure for members | Investment charge 0.085%, administration charge between 0.25% and 0.42% |
| KEY DATA | |
| Total assets as at 31.3.18 | £35m |
| Active members in default | 2,000 |
| % active members in default | 95% |
| Deferred members | 95% |
| Employers | 120 |
| Transfer out to draw income? | No |
| Approach to non-advised drawdown | Already offers it |
| Does default invest in ESG-screened funds? | No - may introduce it within the next 2 years |
| Scheme administrator | BBS Consultants and Actuaries Ltd |
| Scheme investment adviser | BBS Consultants and Actuaries Ltd |
| Asset managers used | LGIM |
| PERFORMANCE: INVESTOR 5 YEARS TO SPA | |||
| 1 Year | 3 Year | 5 Year | |
| Annualised returns before costs (%) | 2.4 | 6.8 | 7.7 |
| Annualised risk | 3.5 | 6.7 | 6.6 |
| Sharpe ratio | 0.6 | 1.0 | 1.1 |
| CAPA Index +/- | 0.49 | 1.36 | 0.46 |
| PERFORMANCE: INVESTOR 30 YEARS TO SPA | |||
| 1 Year | 3 Year | 5 Year | |
| Annualised returns before costs (%) | 3 | 11 | 12 |
| Annualised risk | 7.2 | 10 | 9.3 |
| Sharpe ratio | 0.3 | 1 | 1.2 |
| CAPA Index +/- | 0.37 | 3.91 | 3.5 |
