How PensionBee’s plans are performing in 2023 (as at Q4)

Mathilda Volant

by , Content Manager

at PensionBee

20 Feb 2024 /  

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This is part of our quarterly plan performance series. Catch up on last quarter’s summary here: How PensionBee’s plans are performing in 2023 (as at Q3).

2023 was a prosperous year for many global stock markets and many pension savers will have seen growth in their retirement savings. It may well seem we’re now on the path to recovery. Nevertheless, geopolitical and economic tensions around the world remain high, and with elections looming in several countries, including the UK, there’s potential for future turbulence. In any case, pension saving is considered to be a marathon, rather than a sprint, and years like 2023 make saving productive in the long run.

Keep reading to find out how global markets and our PensionBee plans have performed over 2023.

2023 figures cover the period between 1 January and 31 December 2023.

This blog is only meant to provide information. The data comes from our money managers or plan factsheets. Performance figures are before fees. Past performance isn’t an indicator of what will happen in the future. As with all investments, capital is at risk.

Company shares in 2023

What are company shares?

Company shares are units of ownership in a company. When a company wants to raise money, it can issue shares to investors who pay a certain amount of money for each share. By buying shares, investors become part-owners of the company and can enjoy its profits or growth. But, they also take on the risk of a decline in share prices if the company performs poorly or even goes bankrupt. Company shares are also known as ‘stocks’ or ‘equities’, and they’re commonly traded on stock markets.

Global stock markets

Stock markets underwent a dramatic reversal in Q4 2023. Early concerns about inflation and interest rate hikes caused an initial downturn, but positive economic indicators sparked a significant rally in the latter months. Most stock market indices experienced substantial gains, making up for recent losses and approaching record highs. The technology sector was a key driver, with several prominent companies fueling most stock market surges. This positive quarter exemplifies the dynamic nature of many stock markets and underscores the importance of long-term investing.

Index Investment location Performance over 2023 (%) Equity proportion (%)
FTSE 250 Index UK +4.4% 100%
EuroStoxx 50 Index Europe (excluding the UK) +19.2% 100%
S&P 500 Index North America +24.2% 100%
Nikkei 225 Index Japan +28.2% 100%
Hang Seng Index Asia Pacific (excluding Japan) -13.8% 100%

Source: BBC Market Data

PensionBee’s equity plans

Plan Money manager Performance over 2023 (%) Equity proportion (%)
Fossil Fuel Free Plan Legal & General +17.2% 100%
Shariah Plan HSBC (traded via State Street Global Advisors) +27.4% 100%
Impact Plan BlackRock +7.6 ^ 100%
Tailored (Vintage 2061 - 2063) Plan BlackRock +17.3% 100%
Tailored (Vintage 2055 - 2057) Plan BlackRock +17.3% 100%
Tailored (Vintage 2049 - 2051) Plan BlackRock +16.6% 96%
Tailored (Vintage 2043 - 2045) Plan BlackRock +15.2% 85%
Tracker Plan State Street Global Advisors +16.9% 80%
4Plus Plan State Street Global Advisors +10.3% 73% ^^
Tailored (Vintage 2037 - 2039) Plan BlackRock +13.2% 72%
Tailored (Vintage 2031 - 2033) Plan BlackRock +11.6% 59%

^Performance for Q4 2023 only. Fund inception date was 15 February 2023, so calendar year reporting data is not available.

^^Equity % at 31 December 2023, allocation changes on a weekly basis due to the plan’s actively managed component.

Investment performance is taken from money manager factsheets. To view the factsheets, please visit our Plans page. All performance is reported in gross figures and may not take account of fees associated with certain investments. Past performance is not an indicator of future performance. Capital at risk.

Equity content refers to the amount of exposure each plan has to global stock markets and other listed risk-on assets, such as property and commodities.

Bonds in 2023

What are bonds?

Bonds are a type of investment where you lend money to an organisation, like a government or company. In return, they agree to pay you back with interest over a period of time. A bond yield is the annual return that an investor gets from a bond. Due to their historical stability and predictability, bonds are a popular choice for shorter-term investors such as retirees who plan to drawdown in the near future. Bonds are also known as ‘fixed-income securities’.

Global bond markets

As interest rates peaked in 2023, bonds started looking attractive again. After years of negative returns, the fixed income offered by bonds provided a safe haven in the volatile market. Investors, seeking stability, flocked to bonds. For some, it was a welcome respite from the stock market’s recent rollercoaster.

Fund Source Performance over 2023 (%) Fixed-income proportion (%)
Schroder Long Dated Corporate Bond Fund Morningstar +11.9% 90%

Source: Morningstar

PensionBee’s fixed-income plans

Plan Money manager Performance over 2023 (%) Fixed-income proportion (%)
Pre-Annuity Plan State Street Global Advisors +11.0% 100%
Tailored (LifePath Flexi) Plan BlackRock +8.9% 60%
Tailored (Vintage 2025 - 2027) Plan BlackRock +10.1% 48%

PensionBee’s money market plans

Plan Money manager Performance over 2023 (%) Cash equivalent proportion (%)
Preserve Plan State Street Global Advisors +4.7% 100%

Investment performance is taken from money manager factsheets. To view the factsheets, please visit our Plans page. All performance is reported in gross figures and may not take account of fees associated with certain investments. Past performance is not an indicator of future performance. Capital at risk.

Have a question? Get in touch!

Do you want to know more about your pension plan with PensionBee? Check out our blog on the Top 10 holdings in your pension and see which companies you’re investing in. You can check out our Plans page to learn how your money is invested in different assets and locations. You can always send comments and questions to our team via engagement@pensionbee.com.

Risk warning

As always with investments, your capital is at risk. The value of your investment can go down as well as up, and you may get back less than you invest. This information should not be regarded as financial advice.

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