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.
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.
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
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.