Investments

Explore investment options, check fund performance or
find out how we invest our members’ pension savings

Investing your pension

When saving for the long term, like you do with your pension, we invest your money as this gives it a better chance of being worth more in the long run.

Pension investment choices

Leave your money as it is

Unless you tell us otherwise, we’ll automatically invest your money in our ‘balanced’ investment profile.

Or choose how your money is invested

You can choose other investment options through your Online Account if you want to.

There’s 3 investment profiles to pick from (‘balanced’, ‘cautious’ or ‘adventurous’). Or, for those who are more confident with investment decisions, you can self-select from our range of investment funds. 

Understanding investment options and investment risk

Investing simply means that rather than putting it into a bank account, your money buys investments, like stocks and shares.

If you want to decide for yourself how your pension savings are invested, it’s important to know that investment risk and investment return tend to be linked. Usually the higher the potential investment return, the greater the investment risks.

And the greater the risk, the more likely the investment is to go up and down in value over a short space of time – this is called volatility.

If you want to learn more and get involved with how your money is invested, understanding investment risk is a great place to start. Here’s two videos from Quietroom all about investment risk…

Where we invest your money

The People’s Pension has a range of investment funds, which are typically a mixture of shares from around the world and bonds and gilts.

We invest our members’ money across the different funds – depending on what options you choose and how close you are to retirement.

Investment options with The People’s Pension

If you decide to change from the default, it’s worth reviewing your options on a regular basis to check they meet your requirements. To make your investment choice, or to change how your pension savings are invested, log in to your Online Account.

Option 1 – stick with the default

We automatically invest our members’ money in our ‘balanced’ investment profile (we also call this our default investment profile), unless they tell us otherwise.

So our members don’t have to do anything, they can leave it to us if that’s what they prefer.

Option 2 – choose an investment profile

Investment profiles bring together groups of investments with different levels of risk. There are 3 to choose from with The People’s Pension:

  • balanced
  • cautious
  • adventurous

Option 3 – self-select from our investment funds

Or members can decide for themselves where their pension savings are invested by choosing from our investment funds.

Each fund has a different level of risk and members can decide how much of their money they want to put in each fund.

Our investment profiles

Members of The People’s Pension have a choice of how we invest their pension savings.

We’ve got 3 simple profiles to pick from:

  • balanced
  • cautious
  • adventurous.

And members can change their investment profile through their Online Account.

Our ‘balanced’ (default) investment profile

For members who are prepared to accept some risk but would also like some of their investments to be secure.

If members don’t choose an investment profile (or they’d rather leave it to us), we’ll automatically invest their money in our ‘balanced’ investment profile.

The ‘balanced’ investment profile:

  • is our default investment profile
  • has potential for long-term growth with some security
  • moves to lower-risk investments as members approach retirement.

The fund that makes our ‘balanced’ investment profile is our Global Investments (up to 85% shares) Fund which means members’ money is invested in:

  • UK Equity Index Sub-Fund (20%)
  • North America Equity Index Sub-Fund (20%)
  • Europe ex UK Equity Index Sub-Fund (20%)
  • Japan Equity Index Sub–Fund (10%)
  • Asia Pacific ex Japan Equity Index Sub-Fund (10%)
  • Sterling Corporate Bond All Stocks Index Sub-Fund (10%)
  • UK Conventional Gilts All Stocks Index Sub-Fund (10%)

Download our Global Investments (up to 85% shares) Fund factsheet

Our ‘cautious’ investment profile

For members who are prepared to accept some degree of risk but look for investments which won’t go up and down a lot. 

The ‘cautious’ investment profile:

  • has potential for moderate growth over the long term
  • moves to lower-risk investments as members approach retirement.

The fund that makes our ‘cautious’ investment profile is our Global Investments (up to 60% shares) Fund which means members’ money is invested in:

  • UK Equity Index Sub-Fund (15%)
  • North America Equity Index Sub-Fund (15%)
  • Europe ex UK Equity Index Sub-Fund (15%)
  • Japan Equity Index Sub–Fund (7.5%)
  • Asia Pacific ex Japan Equity Index Sub-Fund (7.5%)
  • Sterling Corporate Bond All Stocks Index Sub-Fund (20%)
  • UK Conventional Gilts All Stocks Index Sub-Fund (20%)

Download our Global Investments (up to 60% shares) Fund factsheet

Our ‘adventurous’ investment profile

For members who are prepared to accept more risk for the potential of increased growth and look for investments with more risk and volatility.

The ‘adventurous’ investment profile:

  • aims to maximise growth in the long term
  • moves to lower-risk investments as members approach retirement.

The fund that makes our ‘adventurous’ investment profile is our Global Investments (up to 100% shares) Fund which means members’ money is invested in:

  • UK Equity Index Sub-Fund (25%)
  • North America Equity Index Sub-Fund (25%)
  • Europe ex UK Equity Index Sub-Fund (25%)
  • Japan Equity Index Sub–Fund (12.5%)
  • Asia Pacific ex Japan Equity Index Sub-Fund (12.5%)

Download our Global Investments (up to 100% shares) Fund factsheet

How to change your investment profile

Are you ready to choose the investment profile you feel suits you best?

Members, you can change your investment profile through your Online Account…

Trying to decide which investment 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 Investment risk and investment return tend to be linked.

Usually the higher the potential investment return, the greater the investment risks. The greater the risk, the more likely the investment is to go up and down in value over a short space of time – this is called volatility.

Remember also, the past performance of investments doesn’t guarantee or act as a guide to future performance.

 If you don’t make a choice, we’ll automatically invest your money in our ‘balanced’ investment profile (we also call this our default investment profile).

Investment changes approaching retirement

Each of our investment profiles gradually and automatically moves pension savings into lower-risk investments as members get closer to retirement.

We call this a 15-year glidepath, because it normally begins 15 years before a member’s selected retirement age.

How the glidepath works

Our 15-year glidepath is designed to safeguard members’ pension savings as they approach retirement.

Each of our investment profiles gradually and automatically moves members’ money into lower-risk investments as they get closer to retirement. This means their savings are less likely to suffer a large fall in value just when they want to use them.

The glidepath should result in a more predictable return, but could also mean that the fund grows less.

The glidepath normally begins 15 years before a member’s selected retirement age (SRA). So, if someone plans to retire at 65, we’ll start switching their investments when they’re 50.

How we move pension savings on the glidepath

As a member approaches retirement, we move their pension savings from one fund to the other on the following basis:

Years from SRA Global Investments Fund Pre-Retirement Fund Years from SRA Global Investments Fund Pre-Retirement Fund
-15 93.75% 6.25% -7 43.75% 56.25%
-14 87.50% 12.50% -6 37.50% 62.50%
-13 81.25% 18.75% -5 31.25% 68.75%
-12 75% 25% -4 25% 75%
-11 68.75% 31.25% -3 16.67% 83.33%
-10 62.50% 37.50% -2 8.34% 91.66%
-9 56.25% 43.75% -1 0.00% 100%
-8 50% 50% 0 0.00% 100%

How to change your retirement age

Unless your employer has selected a retirement age for you, we’ll assume that you’ll take your pension savings at your State Pension Age (SPA). If your SPA includes a number of months, the retirement age we hold will be your birthday before your SPA. For example, if your SPA is 66 and 3 months, the retirement age we hold for you will be 66.

Find out your State Pension age

You can review and change your selected retirement age (SRA) through your Online Account…

But it’s important you know that changing your SRA could affect where your pension savings are invested, by moving them back or forward on the glidepath and into higher or lower-risk investments

Trying to decide which investment 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 glidepath only applies to our 3 investment profiles.

If you choose your investment funds yourself, your money won’t 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.

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).

Ethical Fund – high risk

This fund invests 100% in Global Shares.

The fund’s investments are weighted towards companies that demonstrate a strong track record of managing environmental, social and governance (‘ESG’) risks and opportunities.

Companies who are involved in the production of controversial weapons, including cluster munitions, landmines and biological weapons are excluded.

Or download our Ethical fund factsheet as a pdf

More about our Ethical Fund

Composite sub-fund Target weights
State Street World ESG Index Equity Fund 100%

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.

Download the State Street World Index Equity Fund monthly holdings pdf 

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.

More about our Shariah Fund

Composite sub-fund Target weights
HSBC Amanah Global Equity Index Fund (Class YCGBP) 100%

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:

  • Alcohol
  • Tobacco
  • Pork-related products
  • Weapons & defence
  • Entertainment
  • 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

Download the HSBC Fund’s voting record

Global Investments (up to 100% shares) Fund – high risk

This fund provides diversified exposure to UK and overseas equity markets, investing 25% in the UK stock market and 75% in overseas stock markets.

There’s potential to maximise growth over the long term.

Or download our Global Investments (up to 100% shares) Fund factsheet as a pdf

More about our Global Investments (up to 100% shares) Fund

Composite sub-funds Target weights Range
UK Equity Index Sub-Fund 25% +/-2.5%
North America Equity Index Sub-Fund 25% +/-2.5%
Europe ex UK Equity Index Sub-Fund 25% +/-2.5%
Japan Equity Index Sub-Fund 12.5% +/-2.5%
Asia Pacific ex Japan Equity Index Sub-Fund 12.5% +/-2.5%

Global Investments (up to 85% shares) Fund – high/medium risk

This fund combines the long-term growth potential of UK and Global Equity with the relative security provided by Gilts and Corporate Bonds.

There’s potential for long-term growth with some security.

Or download our Global Investments (up to 85% shares) Fund factsheet as a pdf 

More about our Global Investments (up to 85% shares) Fund

Composite sub-funds Target weights Range
UK Equity Index Sub-Fund 20% +/-2.5%
North America Equity Index Sub-Fund 20% +/-2.5%
Europe ex UK Equity Index Sub-Fund 20% +/-2.5%
Japan Equity Index Sub-Fund 10% +/-2.5%
Asia Pacific ex Japan Equity Index Sub-Fund 10% +/-2.5%
Sterling Corporate Bond All Stocks Index Sub-Fund 10% +/-2.5%
UK Conventional Gilts All Stocks Index Sub-Fund 10% +/-2.5%

Global Investments (up to 60% shares) Fund – medium risk

This fund invests in a combination of shares and bonds.

There’s potential for moderate growth over the long term.

Or download our Global Investments (up to 60% shared) Fund factsheet as a pdf

More about our Global Investments (up to 60% shares) Fund

Composite sub-funds Target weights Range
UK Equity Index Sub-Fund 15% +/-2.5%
North America Equity Index Sub-Fund 15% +/-2.5%
Europe ex UK Equity Index Sub-Fund 15% +/-2.5%
Japan Equity Index Sub-Fund 7.5% +/-2.5%
Asia Pacific ex Japan Equity Index Sub-Fund 7.5% +/-2.5%
Sterling Corporate Bond All Stocks Index Sub-Fund 20% +/-2.5%
UK Conventional Gilts All Stocks Index Sub-Fund 20% +/-2.5%

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.

Or download our Pre-Retirement Fund factsheet as a pdf

More about our Pre-Retirement Fund

Composite sub-funds Target weights Range
UK Equity Index Sub-Fund 5% +/-2.5%
North America Equity Index Sub-Fund 5% +/-2.5%
Europe ex UK Equity Index Sub-Fund 5% +/-2.5%
Japan Equity Index Sub-Fund 2.5% +/-2.5%
Asia Pacific ex Japan Equity Index Sub-Fund 2.5% +/-2.5%
UK Conventional Gilts All Stocks Index Sub-Fund 30% +/-2.5%
Sterling Corporate Bond All Stocks Index Sub‑Fund 30% +/-2.5%
SSgA GBP Liquidity Fund 20% +/-2.5%

Annuity Fund – medium/low risk

This fund is suitable for those approaching retirement and looking to buy an annuity (a regular income, usually for life).

It aims to protect against the effect of falls in the level of annuity rates.

Or download or Annuity Fund factsheet as a pdf

More about our Annuity Fund

Composite sub-funds Target weights Range
Sterling Non-Gilts Bond Over 15 Years Index Sub-Fund 70.0% +/-2.5%
UK Conventional Gilts Over 15 Years Index Sub-Fund 15.0% +/-2.5%
UK Conventional Gilt Dec 2055 Index Sub-Fund 10.0% +/-2.5%
UK Conventional Gilt Jan 2060 Index Sub-Fund 5.0% +/-2.5%

Cash Fund – low risk

This fund invests in short-term money market investments and fixed deposits and is used to maintain the value of your pension savings.

Or download our Cash Fund factsheet as a pdf

More about our Cash Fund

Composite sub-fund Target weight Composite sub-fund
SSgA GBP Liquidity Fund 100% SSgA GBP Liquidity Fund

How to self-select from our investment funds

If you want to decide for yourself where your pension savings are invested, you can choose from our investment funds through your Online Account…

If you choose your funds yourself, your money won’t 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 could pick from one of our 3 investment profiles.

Trying to decide which investment 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.

Investment fund performance

Fund factsheets

Our fund factsheets set out:

  • the aims and objectives of the fund
  • where money is invested under the fund
  • recent fund performance, pricing and market commentary.

Ethical Fund

Shariah Fund

Global Investments (up to 100% shares) Fund

Global Investments (up to 85% shares) Fund

Global Investments (up to 60% shares) Fund

Pre-Retirement Fund

Annuity Fund

Cash Fund

Fund unit prices

Compare our fund unit prices

Social, environmental and ethical investment

B&CE as a not-for-profit-company, and the Trustee of The People’s Pension, take social, environmental and ethical investment very seriously.

When choosing investment managers to partner with, we ensured that the managers were signatories to the United Nations Principles on Responsible Investment and comply with the UK Stewardship Code.

The People’s Pension Trustee has access to regular reports from our core investment managers, State Street Global Advisors (SSGA), on how they vote and engage with the companies we invest in through them.

Our core investment manager’s proxy voting and engagement

SSGA has detailed UK proxy voting and engagement guidelines that address many areas including:

  • board structure
  • audit-related issues
  • capital structure
  • remuneration
  • environmental
  • social
  • other governance related issues.

More about SSGA on their website

Shariah fund managers

The B&CE Shariah Fund is managed by HSBC.

Download the voting record for our Shariah Fund with HSBC