Decide how your money is invested
Your pension savings need careful management
We’ll invest your first contributions for you. That will get your account up and running. To do that, we'll use what's called an investment strategy, putting your money into a specific range of funds. You can tell us to move your pension saving to other funds at any time, directly from your account.
If you'd rather not be too hands on with investing, we can take the decisions for you on an ongoing basis. You can stay invested in one of our pre-determined investment strategies and we'll make the investment decisions for you.
Or, if you feel comfortable making decisions like this yourself, then you can get more involved. There are 17 fund options to choose from. These include funds that will keep your money:
- invested in equities (shares in companies)
- invested in bonds and gilts (loans to companies or governments)
- invested in cash
- invested in specific locations (such as UK/US only, emerging markets)
- invested with lower levels of risk, as you approach retirement
You can read more about managing pension savings and choosing investment funds in our help centre.
Your pension savings need careful management
We’ll invest your first contributions for you. That will get your account up and running. To do that, we'll use what's called an investment strategy, putting your money into a specific range of funds. You can tell us to move your pension saving to other funds at any time, directly from your account.
If you'd rather not be too hands on with investing, we can take the decisions for you on an ongoing basis. You can stay invested in one of our pre-determined investment strategies and we'll make the investment decisions for you.
Or, if you feel comfortable making decisions like this yourself, then you can get more involved. There are 17 fund options to choose from. These include funds that will keep your money:
- invested in equities (shares in companies)
- invested in bonds and gilts (loans to companies or governments)
- invested in cash
- invested in specific locations (such as UK/US only, emerging markets)
- invested with lower levels of risk, as you approach retirement
You can read more about managing pension savings and choosing investment funds in our help centre.
What are investment strategies?
By default, when we open your Smart Pension account, we’ll use a pre-determined investment strategy to put your initial contributions into a mix of funds that aren't exposed to high levels of risk.
Our lifestyle strategies are a mix of investments that take two things into consideration: how much risk you're likely to be comfortable with, and how you plan to take your money from your account when you retire.
Unless you tell us that you want to be more hands on with your savings, and manage the investments yourself, we assume that you don't currently have a higher appetite for risk. In that case, we'll invest your funds by following an appropriate lifestyle strategy.
We'll then carry on making investment decisions, moving your money to a mix of even lower risk funds as you approach retirement age. We rely on the fund managers at JP Morgan and Legal and General Investment Management to take good care of your pension savings and manage that money for you while it's in your Smart Pension account. HSBC Global Asset Management manage our Sharia fund.
What are investment strategies?
By default, when we open your Smart Pension account, we’ll use a pre-determined investment strategy to put your initial contributions into a mix of funds that aren't exposed to high levels of risk.
Our lifestyle strategies are a mix of investments that take two things into consideration: how much risk you're likely to be comfortable with, and how you plan to take your money from your account when you retire.
Unless you tell us that you want to be more hands on with your savings, and manage the investments yourself, we assume that you don't currently have a higher appetite for risk. In that case, we'll invest your funds by following an appropriate lifestyle strategy.
We'll then carry on making investment decisions, moving your money to a mix of even lower risk funds as you approach retirement age. We rely on the fund managers at JP Morgan and Legal and General Investment Management to take good care of your pension savings and manage that money for you while it's in your Smart Pension account. HSBC Global Asset Management manage our Sharia fund.
What are the advantages and disadvantages of using an investment strategy?
There are advantages and disadvantages of using an investment strategy. You should take these into account when deciding how to invest.
Advantages
- You don’t have to choose which funds to invest in – the funds are chosen for you, and your money is managed by experts.
- Your money is invested in a range of different funds for diversification.
- Your money is moved into lower risk investments for you as you approach your selected retirement age.
- Your savings are handled strategically. For example, we won’t move them all in one go because, if the markets are performing badly at the time, this will affect their value.
Disadvantages
- You’re not choosing where you invest. One of our other investment funds might be more suitable for your goals.
- You can’t express your own particular risk preferences at any time, as funds with specific risk levels are chosen on your behalf.
- You also can’t choose when to move or change your investments – movement is automatic and doesn’t take market conditions into account. Even though not all your savings are moving at once, you could still miss out on specific opportunities in the market.
- The final investment choice isn’t suitable if you decide not to retire at your selected retirement age, because it’s not designed for high levels of growth past this date. If you decide to change your retirement age, you should tell us by updating it in your account.
What are the advantages and disadvantages of using an investment strategy?
There are advantages and disadvantages of using an investment strategy. You should take these into account when deciding how to invest.
Advantages
- You don’t have to choose which funds to invest in – the funds are chosen for you, and your money is managed by experts.
- Your money is invested in a range of different funds for diversification.
- Your money is moved into lower risk investments for you as you approach your selected retirement age.
- Your savings are handled strategically. For example, we won’t move them all in one go because, if the markets are performing badly at the time, this will affect their value.
Disadvantages
- You’re not choosing where you invest. One of our other investment funds might be more suitable for your goals.
- You can’t express your own particular risk preferences at any time, as funds with specific risk levels are chosen on your behalf.
- You also can’t choose when to move or change your investments – movement is automatic and doesn’t take market conditions into account. Even though not all your savings are moving at once, you could still miss out on specific opportunities in the market.
- The final investment choice isn’t suitable if you decide not to retire at your selected retirement age, because it’s not designed for high levels of growth past this date. If you decide to change your retirement age, you should tell us by updating it in your account.
Which funds should you invest in?
If you're unsure about making investments, or you'd like more personalised information about your pension options, it's best to get advice.
An Independent Financial Adviser (IFA) can guide you on what’s most appropriate for your retirement plans. If you don't have an IFA now, you may want one in the future. We recommend using unbiased.co.uk to find a qualified, independent and regulated financial adviser.
The funds you choose will depend on your ‘appetite for risk’. We encourage everyone who has a Smart Pension account to learn about investment risks and to review their individual appetite for risk on a regular basis.
Which funds should you invest in?
If you're unsure about making investments, or you'd like more personalised information about your pension options, it's best to get advice.
An Independent Financial Adviser (IFA) can guide you on what’s most appropriate for your retirement plans. If you don't have an IFA now, you may want one in the future. We recommend using unbiased.co.uk to find a qualified, independent and regulated financial adviser.
The funds you choose will depend on your ‘appetite for risk’. We encourage everyone who has a Smart Pension account to learn about investment risks and to review their individual appetite for risk on a regular basis.
Instant changes to your
pension savings
You won’t need to check in on your pension savings every day. They're designed to be a long-term investment. But if you do need or want to get an update, then the secure Smart Pension makes it easy to get that information straight away. There’s no need to make a phone call or to wait for a letter.
Our app will give you real time information about your pension savings. It puts your future into the palm of your hand.
Instant changes to your
pension savings
You won’t need to check in on your pension savings every day. They're designed to be a long-term investment. But if you do need or want to get an update, then the secure Smart Pension makes it easy to get that information straight away. There’s no need to make a phone call or to wait for a letter.
Our app will give you real time information about your pension savings. It puts your future into the palm of your hand.
Instant changes to your
pension savings
You won’t need to check in on your pension savings every day. They're designed to be a long-term investment. But if you do need or want to get an update, then the secure Smart Pension makes it easy to get that information straight away. There’s no need to make a phone call or to wait for a letter.
Our app will give you real time information about your pension savings. It puts your future into the palm of your hand.
Instant changes to your
pension savings
You won’t need to check in on your pension savings every day. They're designed to be a long-term investment. But if you do need or want to get an update, then the secure Smart Pension makes it easy to get that information straight away. There’s no need to make a phone call or to wait for a letter.
Our app will give you real time information about your pension savings. It puts your future into the palm of your hand.
Smart Pension's fund choices
Smart All Stocks Index - Linked Gilts Index Fund
Aims to track the return of the FTSE Actuaries British Government Index Linked All Stocks Index, which features UK government bonds with returns linked to the Retail Price Index (RPI).
Smart Annuity Fund
Aims to invest in a way which matches the broad characteristics of investments underlying the pricing of a typical non-inflation linked annuity.
Smart Cash Fund
Aims to maintain capital and provide a return in-line with money market rates by investing in a range of money market securities denominated in sterling.
Smart De-risking Fund
This fund has been created so that it will typically suit most of our members who are approaching their target retirement age and would like a lower level of volatility than the smart growth funds.
Smart Ethical Global Equity Index Fund
Aims to track a filtered index, which excludes companies that operate in industries that breach certain ethical criteria.
Smart Future Fund
This fund aims to replicate the asset allocation, performance and risk profile of our Smart Growth Moderate fund, whilst incorporating additionalscreening criteria that revalues the weighting of each investment depending on their Environmental, Social, and Governance (ESG) score. It aims to limit the additional risks associated with ESG factors.
Smart Growth Fund - Higher Risk
This fund carries a higher risk of fluctuation to your savings but has the potential for high growth, though this is not guaranteed
Smart Growth Fund - Lower Risk
This fund carries the lowest risk of loss but also reduced likelihood of a high return, but it may be suitable if you are concerned about volatility.
Smart Growth Fund - Moderate Risk
This fund has been created so that it will typically suit most our members, it has the medium level of risk of these funds.
Smart Income Fund
Aims to provide long-term investment growth up to and during retirement, to facilitate the drawdown of retirement income.
Smart Lower Risk Fund
This fund has been created so that it will typically suit most of our members who are approaching their target retirement age and would like an even lower level of volatility than the smart growth funds and the de-risking fund.
Smart North America Equity Index Fund
Aims to track the return of the FTSE World North America Index, which provides broad exposure to companies in the North American equity market.
Smart Overseas Bond Index Fund - GBP Hedged
Aims to invest in different types of bonds, including corporate and government bonds both in the UK and overseas.
Smart Sharia Fund
Aims to create long term appreciation of capital through investment in a diversified portfolio of securities which meets Islamic investment principles.
Smart UK FTSE 100 Equity Index Fund
Aims to track the return of the FTSE 100 Index, which contains the largest listed companies on the UK stock market.
Smart World (ex UK) Developed Equity Index Fund
Aims to track the performance of the FTSE Developed (ex UK) Index, which provides broad exposure to large and mid-cap companies in the developed world, excluding the UK.
Smart World Emerging Markets Equity Index Fund
Aims to track the return of the FTSE All-World Emerging Index, which provides access to key emerging economies including Brazil, Russia, India and China.