It’s no secret that, in recent times, a combination of geopolitical uncertainties, weaker growth and increased volatility has heightened awareness of risk amongst investors. And this, in turn, has sparked new interest in multi-asset funds, as investors try to manage risk and protect capital while also seeking growth opportunities.
Multi-asset funds invest in a combination of asset classes, which typically include equities and bonds, but can also cover a broader range of financial investments such as property and commodities. Their appeal is that they provide diversification and thus ensure investors ‘do not put all their eggs in one basket’ reducing the investment risk.
Increased interest in the multi-asset sector has fuelled a wave of new money into existing funds and a flurry of new fund launches too. According to Morningstar, there are now 1,027 UK domiciled multi-asset funds. The Investment Association data also shows the mixed-asset sector was last year’s best-selling asset class with net retail sales of £7.9 billion.
While the wide choice of funds is fantastic news for investors, it has enhanced the need to seek professional financial advice.
At Pension Works, we strongly recommend multi-asset pension funds as a way of protecting your retirement funds and taking financial advice. Following a thorough assessment of your current pension funds, our expert financial advisers will compare your pension schemes against the whole of the market. If there is a more suitable multi-asset pension available, we will deliver your options to you.
As predominately telephone-based financial advisers, we aim to be available at a time that suits you, from the comfort of your own home. If you live locally to our home in Knutsford, Cheshire, you are more than welcome to visit our offices and meet your adviser for face-to-face advice.
To start your pension review, please call 0808 164 2664 or click here for further information on our pension check service.
This can be found on your payslip, P60 document or letters about tax, pensions or social benefits.
If you have (or have had) a pension that is described below then we can potentially carry-out a Pension HealthCheck.
Defined Contribution Pensions
These are ‘Pot of Money’ pensions where the benefits provided take into account the value of the fund at retirement. They can be personal pensions or Occupational Pensions. There are no guarantees as to what pension will be provided. This will be a reflection of contributions made and investment growth.
Defined Benefit Pensions
These offer the promise of a guaranteed pension at retirement which reflects the length of service with an employer. It will be based on either the Final Salary or Average Career Salary of the employee. Providing the company is still in existence, there is no investment risk for the pension receiver. This type of pension is becoming less frequent.
This is a generic term for pensions that are not workplace schemes.
Group Personal Pensions
Employer-sponsored schemes – each member has a personal pension plan, and their contract is with the pension provider. The employer’s role solely is to select the scheme provider, decide if there should be any restrictions on fund choices and take contributions from the employee’s pay and forward them with employer contributions to the pension provider.
A private pension arrangement or personal pension is taken out by a sole-trader or self-employed worker.
State Earnings Related Pension (formerly Graduated Pension and subsequently State 2nd Pension or S2P) was an additional element of State Pension for employees. The amount of pension was linked to the employee’s salary. SERPS was abolished in 2016 when the flat rate State Pension was introduced.
Private pensions are contracts between the pension member and an insurance company or another pension provider.
These are personal pensions where the member has a much wider choice of investments, including commercial property and single company shares.
Personal Pensions with a set of rules that impose amongst other things a maximum annual management charge (AMC), low minimum contribution levels (£20 per month) and an appropriate Default fund.
Private pension linked to an employer’s Defined Benefit Scheme but separate from the Scheme’s internal Additional Voluntary Contribution (AVC) arrangement – largely defunct since the rules were eased several years ago, allowing people to contribute to both personal and employment schemes as they wish.
Money Purchase Pensions
This is another name for Defined Contribution Pensions.
Unfortunately, we are unable to help clients who currently work for or have a pension from one of the following:
If you are unsure about the type of pension(s) you hold, please contact us on 0800 756 1288 or email firstname.lastname@example.org