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.
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?
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.
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. As with all investments, capital is at risk.
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:
- Future Life Considered
- Future Life Composed
- Future Life Poised
- Future Life Headway
- Future Life Quest
10-year annualised return
Pension Egg
5.20%
Benchmark
4.19%
10-year annualised return
Pension Egg
6.56%
Benchmark
4.93%
10-year annualised return
Pension Egg
7.81%
Benchmark
6.85%
10-year annualised return
Pension Egg
8.98%
Benchmark
6.92%
10-year annualised return
Pension Egg
10.08%
Benchmark
6.99%
2The performance figures are based on actual 10-year average annualised returns as of March 2022. They do not take into account the impact of any associated charges, including financial advice. Source: FE Analytics and Dimensional Return Programme 2.0. When we talk about the benchmark, we are referring to an Investment Association average composition that matches the risk rating for each of our portfolios.