Read about our investment funds and compare their past performances
Our investment funds
We package groups of investments into funds that are typically a mixture of shares from around the world and bonds and gilts. The exact make-up of a member’s investment depends on which fund (or investment profile) they are in and may depend on their age.
For those with more confidence in investing, rather than choosing one of our 3 investment profiles (or remaining in our default investment profile) – members can decide for themselves where their pension savings are invested if they want to, by choosing from our investment funds.
We classify our investment funds by risk – so that members can see which of them have the potential for higher returns, and which of them may remain more stable.
Members can specify what percentage they want to put in each fund (except the Shariah Fund, which has to be all in).
Most of the sub-fund’s assets will be invested in the B Share Class (ISIN: LU1159235529) of the State Street World ESG Index Equity Fund (the ‘ESG Fund’), a sub-fund of State Street Global Advisors Luxembourg SICAV. The aim of the ESG Fund is to track the performance of the MSCI World ESG Universal Index.
MSCI World ESG Universal Index
The Ethical Fund tracks the MSCI World ESG Universal Index. Unlike a standard index which looks at the size of the company, the ESG Universal Index adjusts the size of its holding, increasing it where a company shows a robust or improving ESG profile. Where the profile is weaker the holdings are reduced or excluded.
Companies involved in the production of controversial weapons such as landmines are not invested in.
Filtering companies based on their existing ESG profile is only part of the investment process. The asset manager has a dedicated team of ESG analysts who contribute to their wider stewardship activities. This includes the use of voting rights but also working with companies to develop their processes and policies, securing future improvements.
Shariah Fund – high risk
This fund is invested in 100% global equities – it invests all of its assets in the HSBC Amanah Global Equity Index.
This is a higher risk fund investing in company shares from around the world and is compliant with Islamic Shariah principles.
If you select the Shariah Fund, you’ll need to invest all your pension savings with us in this fund.
HSBC Amanah Global Equity Index Fund (Class YCGBP)
The B&CE Shariah Fund aims to offer investors the opportunity to grow their money in line with the performance of the Dow Jones Islamic Titans 100 Index (Total Return). This is a higher-risk fund investing in company shares from around the world and is compliant with Islamic Shariah principles. It invests all of its assets in the HSBC Amanah Global Equity Index.
The HSBC Amanah Global Equity Index Fund aims to create a long-term appreciation of capital through investment in a diversified portfolio of securities as defined by a relevant world index, which meets Islamic investment principles as interpreted and laid down by the Shariah Committee and provided to the Board of Directors.
HSBC Amanah Global Equity Index Fund is a pooled fund that offers investors exposure to the largest 100 companies engaged in Shariah-compliant activities globally.
What is a Shariah-compliant investment?
Islam as a religion does not discourage the pursuit of profit through legitimate economic activities, provided that these activities are within certain boundaries defined by Islamic law. In particular, the HSBC Shariah Supervisory Committee has approved investment in listed companies, provided that these companies are not engaged in activities that go against the tenets of Islam and provided any non-Shariah compliant revenue earned through investment in these companies is ‘purified’.
On an on-going basis, the HSBC Shariah Supervisory Committee is called to certify that the activities of the Fund continue to abide by the guidelines set for acquiring, holding and disposing of investments.
What activities are excluded?
The Fund does not invest in shares of companies whose primary activity involves any of the following goods or services:
Weapons & defence
Conventional financial services
In addition, the Fund does not invest in companies with levels of borrowings and financial assets beyond levels deemed tolerable by the Shariah Supervisory Committee.
Who is HSBC Amanah?
HSBC Amanah is the Islamic financial services division of the HSBC Group responsible for the development of Islamic financial products. Headquartered in Dubai with regional offices in London, New York, Riyadh, Kuala Lumpur, Dhaka and Jakarta.
HSBC Amanah is uniquely positioned to understand, structure and deliver financial solutions that are compatible with the requirements of Shariah (Islamic law).
The B&CE Shariah Fund is managed by HSBC.
Pre-Retirement Fund – medium/low risk
This fund is suitable for those approaching retirement who don’t yet know how they will use their pension savings.
It provides a balance between capital growth and capital preservation.
If you choose your funds yourself, your money wont automatically move into lower-risk investments as you approach retirement. That means you’ll need to make sure you regularly review the funds you’ve selected (and your attitude to investment risk) as you near retirement. Alternatively, you can pick from one of our 3 investment profiles.
Trying to decide what option suits you best?
If you’re a member of The People’s Pension and you’re trying to decide which investment option will suit you best, it’s important to know that the value of investment funds will move up and down depending on how well they’re performing.
Different types of investments move up and down in value in different ways. Some move sharply and can be unpredictable, others move less abruptly and remain relatively stable. This movement is called volatility and some investments are more volatile than others.
Past performance of investments doesn’t guarantee or act as a guide to future performance.
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