Moneybox Pension - How it works

What pension funds can I invest in?

Our range of pension Starting funds make investing for your retirement simple and easy.

The Moneybox Pension currently has four starting funds for you to invest in; the Fidelity Index World Fund, Old Mutual World ESG Index fund, HSBC Islamic Global Equity Index Fund or the BlackRock LifePath fund. These funds have been chosen based on their diversification, exposure to global markets and investment strategies.

  • The Fidelity Index World Fund is a global tracker fund, with shares in more than 1500 companies across 23 countries.
  • The Old Mutual World ESG Index Fund is our Socially Responsible investment option. This fund invests in a range of companies from across the developed global stock market but considers environmental, social and governance (ESG) factors in its selection process. These factors include things like how companies respond to climate change, treat their workers and manage their supply chains.
  • The HSBC Islamic Global Equity Index Fund is our Shariah compliant fund. With an investment process that’s been approved by an independent Shariah committee, this fund excludes industries such as alcohol, gambling, tobacco, military equipment or weapons and any products containing pork. You’ll invest globally into shares across a range of sectors such as Technology and Healthcare. Please note that this fund is domiciled in Luxembourg and is not covered by the UK Financial Services Compensation Scheme (FSCS).
  • The BlackRock LifePath fund is a ‘Lifestyle’ fund that changes the balance of investments as you get closer to your retirement date. When you select this fund you’ll be asked to select the one with a target date that matches when you think you will retire. If you’re unsure of this, we recommend that you speak with an independent advisor.

In addition to these starting options, we offer 7 further tracker funds you can invest in. These funds can be found in Settings > Allocations and are: 

Fidelity Index Emerging Markets Fund P Acc – Emerging Markets Equities 

Track companies in Emerging Markets such as Asia, Latin America and Africa, which have been selected based on long-term growth. The fund invests in a range of sectors such as Technology and Retail and includes companies like Samsung, Alibaba and Tencent.

 

Legal & General Global Health & Pharmaceuticals Index – Healthcare Equities 

Gain exposure to the global healthcare sector by tracking the performance of healthcare, pharmaceutical and biotechnology companies that are included in the FTSE World Index. You’ll invest in companies like Pfizer which develops and produces medicines and Johnson & Johnson which develops medical devices and pharmaceutical goods.

 

Legal & General Global Technology Index – Technology Equities 

Follow the companies who are pioneering some of the world’s biggest digital trends. You’ll track the performance of companies in the FTSE World Index which are engaged in Information Technology activities like Apple, Microsoft, and Google. 

 

Royal London Emerging Markets ESG Leaders – Emerging Market Equities 

Invest in a range of companies from across Emerging Markets who consider environmental, social and governance (ESG) factors. These factors include things like how companies respond to climate change, treat their workers and manage their supply chains.

 

The next three funds are already available for our other investing products: 

 

iShares Global Property Equity – Global Property Shares

Gain exposure to property without buying any buildings yourself. Pool your money with lots of others to invest in over 300 property companies from around the world, across a range of industries from residential housing to shopping centres. You’ll own shares in companies like Equity Residential that develops luxury apartments in the US.

 

iShares Overseas Corporate Bond Index – Corporate Bonds

Balance your portfolio with bonds which are generally a lower risk and lower return option than shares. Big companies borrow cash from people like you to fund their growth, and you get interest and loan repaid. This fund invests in over 4,000 well-known global companies like JP Morgan Chase & Co, Comcast, CVS Health and Bank of America.

 

iShares Overseas Government Bond Index – Govt. Bonds

Diversify your portfolio and balance your risk with government bonds of the largest developed economies, excluding the UK. Like corporate bonds, they’ll generally offer better returns than cash but with lower risk and returns than shares.

Governments borrow cash to help fund public services like new schools, roads and hospitals. Returns and volatility of bonds depend very much on who’s issuing them, however government bonds are considered to be a relatively safe investment.

 

You can change which fund to invest your pension in at any time in Settings > Allocations. This can be selected for ‘future’ – in which all future transfers or deposits would be invested into the newly selected fund, or for ‘all’. Please note that ‘all’ will sell down all of your existing units in the originally selected fund to purchase units in the new fund, so you would be ‘out of the market’ for a short time.

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It's important you know

All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest.

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