Our investment philosophy

The best way to feather your nest is stay disciplined and focus on the long term

Three ways to invest your pension savings

When it comes to personal pensions the aim is to grow your investments as much as possible. There are three main approaches to achieving this. 

invest pension

Crystal ball approach

Trying to predict the future is still the most common approach. The question is: are you happy for your pension savings to be invested based on what is essentially guesswork?

invest pension

The tracker approach

Tracker funds aim to replicate the performance of a specific slice of one stock market. This is because history shows us that stock markets have always risen over time.

invest pension

Pension Egg 

Our approach is about being disciplined, using technology, a broader spread of investments and scientifically proven facts to improve on the tracker philosophy.

Important: pension savings can go down as well as up. Past performance is not a reliable indicator of future result.

pension investment

Why staying invested matters

Trying to beat the market by buying and selling shares may seem exciting. Unfortunately, as the graph on the left shows, missing even a few days of the best market returns can have a dramatic impact on the growth of your investments1. Click here to download your guide to being a disciplined investor.

1Based on £1,000 invested in FTSE All Share Index in 1986 and the value of investments after 18 years. Dimensional figures: performance does not reflect the expenses associated with the management of an actual portfolio.

Our investment philosophy in action

At Pension Egg we invest our clients’ money in a range of portfolios. And while past performance is not a reliable indicator of future results, history shows that our portfolios consistently beat the benchmark. Our five main portfolios are2:

10-year annualised return

Considered
6.09%

Benchmark
4.78%

10-year annualised return

Composed
7.18%

Benchmark
5.28%

10-year annualised return

Poised
8.18%

Benchmark
6.85%

10-year annualised return

Headway
9.10%

Benchmark
6.82%

10-year annualised return

Quest
9.95%

Benchmark
6.78%

2The portfolio investment mix is correct as of February 2020. The performance figures are based on simulated 10-year average annualised returns of our portfolios, as of December 2019. Source: FE Analytics and Dimensional Return Programme 2.0 (for some of the funds indices that provide guide information on historical performance have been used).  When we talk about the benchmark we are referring to an Investment Association average composition that matches the risk rating for each of our typical portfolios.