Penfold has partnered with BlackRock, the world’s largest asset manager, to invest your money for you. They work hard to protect and grow your savings over the long term through a wide range of low cost investments around the world.
Investment risk levels
We offer four different risk levels, ranging from the least risky that contains a low proportion of your money invested in equities (stocks & shares), increasing to the most risky level which contains a higher proportion of your money invested in equities.
- Level 1 is for someone who is closer to retiring within the next 10 years. This level is preferable to these types of people because it is the lowest risk level, with less of your pension invested in equity (stocks and shares) and therefore has a lower chance of your pension decreasing in value just before you retire.
- Level 2 is for someone who is midway from retiring (10-15 years), and is a low-middle risk level, where there is some more growth potential as slightly more is invested in the stock market.
- Level 3 is for someone who is longer away from retiring (over 15 years), and is a middle-high risk level where the growth potential is higher as a slightly larger percent of your money is invested in the stock market, this is preferable for someone younger because they have more time to make up any losses in their pension before they retire.
- Level 4 is for someone who is very young and is retiring over 20 years away as it is a high risk level, where there could be significant high growth but also large losses, where the majority of your pension is invested in the stock market. This level is preferable to younger people typically because they have a longer way until they retire, so any dramatic losses can be overcome over many years, allowing a more gradual upward trajectory.
Of course you can choose which risk option you are most comfortable with and can change it at any time.
Please note that no investment is risk free – taking risk should help your savings grow over the long term. BlackRock add an extra layer of ‘risk management’ for your money though, which should help protect it in times when global investment markets are less stable. This should give you the peace of mind to leave your investments in place for many years and not have to check them from day to day.
BlackRock invest your money in line with their MyMap strategy, which is specifically designed for long term retirement savings. It is low cost, broadly diversified, and built to react to the market, so that the ups and downs should be within the level of risk you are comfortable with.
All four options cost the same and are included in the 0.75% annual fee we charge.
You can read more about how your savings are invested here.