What funds can I invest my pension in?
The Moneybox Personal Pension has a number of different fund options that make investing for your retirement simple and easy.
If you don’t feel confident managing your own investments and are looking for a simple way to build your retirement savings, you could consider the Moneybox default option, which will be one of two Moneybox funds – Balanced, or Adventurous. Your default option is based on your current age to align your risk level with your time horizon to retirement. The default option is intended to meet the needs of a wide range of customers – people of different ages, backgrounds and income levels – and there is no guarantee that it will be suitable for your particular retirement goals.
In addition to the default option, we offer a range of tracker funds you can invest in. These funds can be found in Settings > Allocations and are:
The Moneybox Cautious Fund is mainly invested in bonds. Here, the risk is lower, but so are the potential returns. It may be suitable for you if you’re over 50 years old and you want to move your pension investments out of riskier investments if you’re almost at retirement age.
The Moneybox Balanced Fund has a similar mix of bonds and stocks – meaning your money has a moderate potential for growth. With Balanced, the risk is slightly higher vs Cautious, but so are the potential returns. It may be suitable if you’re starting to approach retirement age.
The Moneybox Adventurous Fund is mainly invested in stocks. It’s for those looking for higher potential returns in exchange for taking on more risk. It may be suitable for you if you’re under 50 years old and you want to give your pension investments more opportunity to grow.
The Fidelity Index World Fund is a global tracker fund, with shares in more than 1500 companies across 23 countries.
The Old Mutual MSCI World Selection Index Fund is our socially responsible investment option. This fund invests in a range of companies from across the developed global stock market but considers environmental, social and governance (ESG) factors in its selection process. These factors include things like how companies respond to climate change, treat their workers and manage their supply chains. Please note that this fund is domiciled in Ireland and is not covered by the UK Financial Services Compensation Scheme (FSCS).
The HSBC Islamic Global Equity Index Fund is our Shariah compliant fund. With an investment process that’s been approved by an independent Shariah committee, this fund excludes industries such as alcohol, gambling, tobacco, military equipment or weapons and any products containing pork. You’ll invest globally into shares across a range of sectors such as Technology and Healthcare. Please note that this fund is domiciled in Luxembourg and is not covered by the UK Financial Services Compensation Scheme (FSCS).
Fidelity Index Emerging Markets Fund P Acc – Emerging Markets Equities – Track companies in Emerging Markets such as Asia, Latin America and Africa, which have been selected based on long-term growth. The fund invests in a range of sectors such as Technology and Retail and includes companies like Samsung, Alibaba and Tencent.
Legal & General Global Health & Pharmaceuticals Index – Healthcare Equities – Gain exposure to the global healthcare sector by tracking the performance of healthcare, pharmaceutical and biotechnology companies that are included in the FTSE World Index. You’ll invest in companies like Pfizer which develops and produces medicines and Johnson & Johnson which develops medical devices and pharmaceutical goods.
Legal & General Global Technology Index – Technology Equities – Follow the companies who are pioneering some of the world’s biggest digital trends. You’ll track the performance of companies in the FTSE World Index which are engaged in Information Technology activities like Apple, Microsoft, and Google.
Emerging Markets Shares ESG (Royal London) – Invest in a range of companies from across Emerging Markets who consider environmental, social and governance (ESG) factors. These factors include things like how companies respond to climate change, treat their workers and manage their supply chains.
iShares Global Property Equity – Global Property Shares ESG – Gain exposure to property without buying any buildings yourself. Pool your money with lots of others to invest in over 300 property companies from around the world, across a range of industries from residential housing to shopping centres. You’ll own shares in companies like Equity Residential that develops luxury apartments in the US.
iShares Overseas Corporate Bond Index – Corporate Bonds – Balance your portfolio with bonds which are generally a lower risk and lower return option than shares. Big companies borrow cash from people like you to fund their growth, and you get interest and loan repaid. This fund invests in over 4,000 well-known global companies like JP Morgan Chase & Co, Comcast, CVS Health and Bank of America.
iShares Overseas Government Bond Index – Govt. Bonds – Diversify your portfolio and balance your risk with government bonds of the largest developed economies, excluding the UK. Like corporate bonds, they’ll generally offer better returns than cash but with lower risk and returns than shares. Governments borrow cash to help fund public services like new schools, roads and hospitals. Returns and volatility of bonds depend very much on who’s issuing them, however government bonds are considered to be a relatively safe investment.
You can change which fund to invest your pension in at any time in Settings > Allocations. This can be selected for ‘future’ – in which all future transfers or deposits would be invested into the newly selected fund, or for ‘all’. Please note that ‘all’ will sell down all of your existing units in the originally selected fund to purchase units in the new fund, so you would be ‘out of the market’ for a short time.