The People's Pension Pre-Retirement 0.5% Pn

28/02/2019

Important Notes This document is provided for the purpose of information only and should not be construed in any way as giving investment advice. Past performance is not necessarily a guide to future performance, as the value of the units may go up or down and any return is not guaranteed. The price of the units can be monitored on our website at bandce.co.uk/fund-unit-prices

Investment objective

The B&CE Pre-Retirement Fund seeks to provide a balance between capital growth and capital preservation and is intended to be suitable for UK pension scheme members who are approaching retirement and have not yet decided what they want to do with their investments at retirement. The fund aims to achieve a return of approximately 1% (before deduction of fees) in excess of Consumer Price Index inflation, over the medium term.

Performance

Cumulative Performance

ResetPerformance line chart
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1 Month6 Months1 Year3 Years5 Years10 Years
Fund0.07%-0.24%1.72%23.28%44.61%
Mixed Investment 0-35% Shares0.40%-0.78%1.45%16.36%27.40%91.61%
Rank41211

Discrete Performance

Performance Bar chart
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Year 1Year 2Year 3Year 4Year 5
Fund1.72%1.15%19.82%0.37%16.88%
Mixed Investment 0-35% Shares1.45%1.46%13.04%0.45%9.00%
Rank23121

Contact information

The People’s Pension Trustee Limited
Manor Royal, Crawley, West Sussex, RH10 9QP.
Tel 0300 2000 555 Fax 01293 586801
www.thepeoplespension.co.uk

Market commentary

A small number central banks including the US Federal Reserve raised interest rates in the quarter, however future raises have been put in doubt due to falling growth. Gilt yields were volatile through the quarter but performed well in the end, posting a positive return and outpacing eurozone debt. Global government bonds posted positive returns for the first time in three quarters lead by returns from the US. Corporate bond returns were not as favourable with tighter liquidity requirements, increasing geopolitical risk, and signs of a growth slowdown hurting the asset class. The equity market lagged with sell-offs accelerating through to the end of December. US equities had their worst quarterly performance since 2011 due to a host of economic and geopolitical factors. UK equities fell, in part due to a weaker sterling caused by uncertainty around Brexit. European equities slightly outperformed US stocks but still fell. Asia Pacific equities were not immune to the worsening market environment but did manage to outperform North American and European equities. After raising rates in August and beginning the quarter with a statement highlighting their view that rates may need to rise more than previously expected, the BoE maintained the bank rate of 0.75% in the fourth quarter, citing Brexit as an ongoing challenge.