"The best performing pension could produce more than three times more pension income than the worst performing one. The really bad news is that your pension fund is more likely to be amongst the bad than the good" The Observer
Most enquiries to The Pensions Office come from people whose pension scheme is invested in just a single fund.
Typically this will be a with profits fund, equity fund or managed fund (the vast majority of which are invested at least 80% in equities). It is well documented that equities have outperformed all the other major asset classes over the long term but, over shorter periods, they tend to represent a more volatile investment, which can unsettle many investors.
To reduce this volatility whilst maintaining competitive rates of investment return The Pensions Office almost invariably recommends clients maintain a portfolio of funds in different asset classes – primarily commercial property, fixed interest and ‘cash’ as well as equities. Higher risk investors may be directed more towards equities whilst we may pay more attention to, say, fixed interest funds for lower risk clients.
We believe strongly in this approach to provide the best possible investment returns for a stated level of client risk or, alternatively, the lowest possible level of risk for a stated level of desired investment return. We also regular review client portfolios to ensure that portfolios maintain their effectiveness in changing investment markets.