Choosing where to invest your savings

Your pension provider should be able to send you information about the fund options available to you. Detailed information about each fund should be provided before you choose the fund or combination of funds you want to invest in. This information should help explain the fund’s investment objectives, charges and other information such as where it invests (normally broken down into country and type of asset or sector).

 

Pensions Basics

How do I choose the right fund for me?

Choosing the right fund or funds to invest in as a very personal decision. You need to factor in how long you’ve got until retirement and what kind of investment risk you’re willing to take.

Things to consider

When looking at the fund choices available to you it is worth understanding

  • Where the fund is invested: what kind of assets does the fund invest in (things like shares, fixed interest deposits and property) and what is the mix? Is it spread across these assets to minimise risk? Where in the world is it invested and in what industries. 
  • How the fund has performed so far – most fund factsheets will give you details on the fund performance, or you can look it up online if you have the full fund name and code. However, it’s worth remembering that past performance does not always give a fair indication of how the fund will perform in the future.
  • What fee’s are charged; in addition to your annual management charge, the fund manager may charge an additional amount which will vary from fund to fund. 

What funds do Penfold use?

Penfold partners with BlackRock and HSBC, to protect and grow your savings over the long term through a wide range of low-cost investments around the world.

Standard Investment Plan

We offer four different risk levels, ranging from the least risky that contains a low proportion of your money invested in equities (stocks & shares), increasing to our higher risk level which contains a higher proportion of your money invested in equities. 

  • Level 1 This may be preferable to those closer to retirement within the next 10 years because it is the lowest risk level. Less of your pension is invested in equity (stocks and shares) which means it aims to keep your fund value steadier as you approach retirement. 
  • Level 2 This may be preferable to those midway from retiring (10-15 years), as this is a low-middle risk level, where there is some more growth potential and risk as slightly more is invested in the stock market. 
  • Level 3 This may be preferable to those who have longer until retirement (over 15 years) and is a middle-high risk level where the growth potential and risk is higher as a slightly larger percent of your money is invested in the stock market. This may be more acceptable for someone younger because they have more time to take advantage of any market ups and downs in their pension before they retire.
  • Level 4 This may be preferable to those who are over 20 years away from retiring as it is a high risk level, where there could be significant high growth but also large market ups and downs along the way, where the majority of your pension is invested in the stock market. This level may be preferable to younger people typically because they have a longer until they retire, so any dramatic market drops can be overcome over many years, allowing a more gradual upward trajectory.

Of course, you can choose which risk option you are most comfortable with and can change it at any time. 

Sustainable Investment

Similar to our Standard MyMap fund range, the Sustainable MyMap fund invests across thousands of companies and other investment assets. But through its advanced technology it aims to invest only in companies that meet high sustainability standards and scores.

It's important to note that unlike our Standard range, there is only one risk level available, which holds the same risk level as our Standard Level 3 fund.

Shariah Fund

Our Shariah compliant fund is managed by HSBC, and also matches our four fundamental principles of investing: passive investing, broad diversification, low cost and managed risk. 

It invests only in companies that are compliant with Shariah law. As a 100% equity investment, meaning that the entire fund is invested in stocks and shares, it carries the highest level of risk and potential returns, compared to our other Standard and Sustainable funds, but it's a great option for those looking for a socially responsible way to invest their money under Shariah law, without compromising growth. 

Investments overview


Please note that no investment is risk free – taking risk should help your savings grow over the long term. BlackRock add an extra layer of ‘risk management’ for your money though, which should help protect it in times when global investment markets are less stable. This should give you the peace of mind to leave your investments in place for many years and not have to check them from day to day.

BlackRock invest your money in line with their MyMap strategy, which is specifically designed for long term retirement savings. It is low cost, broadly diversified, and built to react to the market, so that the ups and downs should be within the level of risk you are comfortable with.

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