PensionBee Personal Pension Investment Philosophy

Transcription

1 PensionBee Personal Pension Investment Philosophy March

2 About our plans We believe that everyone should have access to a good pension plan, whether it s a PensionBee plan, or not. The important thing for us is that we help our customers take control of their own pensions, and their own futures. We hope that many people will choose to do this through PensionBee. Our plans have been chosen based on our investment philosophy as described below, but this does not mean that our plans are the best choice for everyone. Our customers are under no obligation to transfer their pensions to us. Our investment philosophy We believe in offering good value pension plans, based on transparency, low investment costs and diversification of investments. Transparancy We want to make pensions clear so that everyone can save their money into a pension plan that they understand. Our transparent approach means that our customers will never be in the dark about their pension plan and how they are investing their money. We always tell you how much you are paying in fees. Rather than overwhelm our customers with thousands of choices, we offer three simple plans. These plans differ based on the level of customised attention you would like from our Money Managers and, accordingly, in price. Low investment costs Fees are one of the most important factors in determining how much you will ultimately receive from your pension. Some consumers will give up as much as half of their pension in charges! A recent survey of direct contribution pension scheme members, run by the Pensions Regulator, showed that about one third of pension owners are not even aware that their pensions carry costs and most others don t know what their costs are. At PensionBee, we know you work hard, so all three of our plans use low-cost investment strategies to offer good value for your money. It s often believed that over time, investment performance across different investment method strategies can even out, meaning that in many cases keeping costs low can make the real difference. 2

3 Diversification of investment You should never put your eggs in one basket and the same is true of investing. The performance of different assets moves up and down over time, so investing in a range of assets could result in more stable returns for your pension. All three of our plans contain a variety of asset types (eg. equity, government bonds, corporate bonds) invested in different geographies, so you can maintain a balanced portfolio. How the PensionBee plans were selected To select the three PensionBee plans, we approached some of the biggest Money Managers in the world. We took our search to the global leaders to ensure our customers could take advantage of some of the best providers available anywhere. These Money Managers reviewed our investment philosophy and put forward the plans they believed were most appropriate based on our objectives of transparency, low investment costs and diversification of investment. Ultimately, the solutions presented by Blackrock and State Street Global Advisors best reflected these objectives. We used our own judgment to make that decision and did not take professional advice. In turn, we do not offer investment advice to our customers, and firmly believe that our customers should research and make their own decisions about where they invest their money. Investment strategies There are currently three plans available for PensionBee customers: Tracker Plan, Match Plan and Tailored Plan. A brief overview of each is provided on the following pages. 3

4 PensionBee Tracker Managed by State Street Global Advisors Plan description Your money is mainly invested in shares and bonds, and the plan follows the market as it moves. Annual plan fee: 0.50% ( 100 assuming a pension 0f 20,000) Investment type Investment geography 13% 1 13% 7% 7% 80% 5 Equity Fixed income UK Europe North America Japan Rest of world About State Street As one of the world s largest money managers with over 1.3 trillion in total assets under management, State Street Global Advisors has over 9,000 employeesin the UK, Ireland and Europe. 4

5 PensionBee Match Managed by BlackRock Plan description Invested according to how other money managers are investing, usually in a combination of shares, bonds, property and cash. Annual plan fee: 0.60% ( 120 assuming a pension 0f 20,000) Investment type Investment geography 13% 8% 23% 12% 1 8% 14% 67% 3 Equity Fixed income Other UK Europe North America Japan Rest of world About BlackRock With 3 trillion in assets under management, BlackRock is trusted to manage more money than any other firm in the world. BlackRock has over 12,000 employees operating in 30 countries. 5

6 PensionBee Tailored Managed by BlackRock Plan description Customised for you by BlackRock so that your investments change as you near retirement. Annual plan fee: 0.70% ( 140 assuming a pension 0f 20,000) Investment type Investment geography 40% 4% 14% 14% 82% 32% 9% Equity Fixed income Other UK Europe North America Japan Rest of world About BlackRock With 3 trillion in assets under management, BlackRock is trusted to manage more money than any other firm in the world. BlackRock has over 12,000 employees operating in 30 countries. 6

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