PensionBee, a leading online-only pension manager, has introduced three new pension plans for 2019 including a low-risk plan designed to shelter savers from stock market volatility and a Shariah-compliant plan.
The PensionBee Preserve Plan is designed to shelter pensions from stock market volatility. Instead of investing in the markets, it makes short-term investments into creditworthy companies, reducing risk. Managed by State Street Global Advisors, The PensionBee Preserve Plan could be suitable for anyone wanting a very low risk, low return plan.
Romi Savova, CEO of PensionBee commented: “We created the PensionBee Preserve Plan in response to feedback from customers who were concerned about how the recent market volatility might affect their pension savings in the short-term. Customers wanted a low risk option, and the PensionBee Preserve Plan offers that.”
With the PensionBee Preserve Plan customers can move their money away from the markets and seek stability, which may be appropriate for savers considering accessing their pensions in the near-term.
Romi Savova, CEO of PensionBee commented: “It’s been a volatile year in the markets: Brexit, trade wars and a series of corporate scandals have all taken their toll, with pension funds tied up in stocks feeling the impact. Over the long-term, investments tend to weather these storms, but if you’re close to retirement and intend to drawdown on your pension in the short-term, it’s unlikely you’ll want to take that risk. The PensionBee Preserve Plan aims to protect savings from market volatility.”
Pia McCusker, Global Head of Cash Management at State Street Global Advisors commented: “We are delighted to strengthen our relationship with PensionBee and support the needs of their underlying investors through the inclusion of our Sterling Liquidity Sub-Fund as the fund behind the PensionBee Preserve Plan. The Sub-Fund’s primary objective is capital preservation which in volatile market conditions, can serve as a valuable component in providing downside protection.”
The PensionBee 4Plus Plan aims to achieve long-term growth of 4% per year, over a five-year period, by actively managing customers’ money across a range of global investments. It is managed by State Street Global Advisors who respond to market developments where necessary, always seeking a balance between growth and stability.
The PensionBee 4Plus Plan could be suitable for anyone who is considering accessing their pension in the near to medium term, and wants their returns to be actively managed by experienced professionals in the meantime.
Romi Savova, CEO of PensionBee commented: “Just like the PensionBee Preserve Plan, our 4Plus Plan is built for retirees. It’s cautious, but not to the extent that customers won’t see any growth in their money, as a large proportion of savings will remain actively invested in the markets.The long-term growth target of 4%, over a five-year period, can indicate what they can expect to receive, so they can start planning their retirement to a degree of certainty.”
Mehvish Ayub, Senior Investment Manager at State Street Global Advisors commented: “We are very pleased that PensionBee has chosen to include the 4Plus Fund as part of its proposition. With markets undoubtedly becoming more volatile and with expectations for this to continue, investors want to remain well diversified across asset classes whilst having the tools to counteract unforeseeable downside risks. The 4Plus Fund was developed to allow investors to participate in rising markets as well as dynamically manage their asset allocation to limit the risk of significant drawdowns when markets fall. The fund uses proven market-aware intelligence and portfolio management expertise to deliver a smoother investment path by switching into the right assets at the right time.”
The PensionBee Shariah Plan is managed by State Street Global Advisors and HSBC, and only invests in Shariah-compliant funds, which are a branch of socially responsible investing shaped by the Islamic faith. All investments are approved by an independent Shariah committee, who work closely with the fund managers.
Anyone can choose the PensionBee Shariah Plan including those who want to invest according to the Islamic faith as it excludes investments in alcohol, gambling, tobacco, military equipment or weapons, pornography and any products containing pork.
Romi Savova, CEO of PensionBee commented: “Alongside our environmentally-friendly Future World Plan, the PensionBee Shariah Plan allows customers to invest responsibly, and according to their faith, without neglecting their pension.”
This is the first time PensionBee has worked with HSBC, making it the fourth money manager it has partnered with, alongside Legal & General, BlackRock and State Street Global Advisors, who coordinate the trading into the Shariah Plan.
Romi Savova, CEO of PensionBee commented: “We’re excited to be working with a new fund manager, HSBC, and once again with State Street Global Advisors, to bring our customers a plan that operates under Shariah principles. When it comes to pensions the needs of the Islamic community have historically been overlooked, with many Muslims finding it difficult to build retirement savings that are in line with their faith. PensionBee believes pension should be simple for everyone, which is why we offer a range of options which allow customers to regain control of their savings no matter what their faith or values.”
Laura Bampfylde, Strategic Partnerships Director at HSBC Global Asset Management commented: “We are delighted that PensionBee has chosen to offer the Global Islamic Index Fund as a pension plan option. We believe there should be pension and investment options available for people who want to invest according to their faith. The HSBC Global Islamic Index Fund has been developed to ensure Shariah compliance; these principles mean a stronger focus on ‘ethical’ investments that focus on the enhancement of society – therefore, certain industries are prohibited under Islamic finance, such as alcohol, gambling, arms and the finance sector.”
The introduction of these three new plans was driven by PensionBee’s 30,000 customers who asked for ways to invest their money more sustainably and with less exposure to risk. These new plans bring the total number to seven, with each specially designed to suit the different savings needs of PensionBee’s customers. The online pension manager’s average customer is 38 years old and the company offers pensions across the age spectrum, including for over 55s seeking drawdown solutions, which provide flexible access to their savings.
The Shariah, Preserve and 4Plus Plans are available through PensionBee.com to new and existing customers.