Investment performance can be one of the biggest factors influencing the size of your pension at retirement. You don’t need to become an investment expert, but it’s worth keeping an eye on how your pension investments are performing – particularly in the light of events such as the Russia-Ukraine conflict and the Covid-19 pandemic. We’ve also experienced quite a bit of economic uncertainty over the last couple of months, which makes it all the more important to check your pension for the latest position, always remembering that pension saving is a long-term investment and some short-term drops in value are to be expected along the way.
The Trustees have a responsibility to monitor the investment funds available to you. They select these funds carefully in accordance with a Statement of Investment Principles, which you can read online, along with an Implementation Statement that gives more information about how those principles work out in practice.
Here’s a summary of how the HIPS DC investment funds have done over the last year, three years and five years. Remember, you can log in to the member portal to view specific information about the funds you’re invested in.
Fund name
Performance over one year (2021) (%)
Performance over three years (2019-2021) (% p.a.)
Performance over five years (2017-2021) (% p.a.)
‘Growth’ phase of lifestyles
19.9
17.6
12.2
HIPS UK Equity
17.4
7.9
5.2
HIPS World Equity
23.7
20.0
13.3
HIPS World Equity (Currency Hedged)
24.6
20.4
-
HIPS Blackrock 60:40 Global Equity
17.1
11.3
7.7
HIPS Active Diversified
3.0
6.0
2.5
HIPS Passive Diversified
8.7
10.3
7.1
HIPS Property
27.6
9.3
-
HIPS Fixed Interest Gilts
-7.2
5.7
4.0
HIPS Index-Linked Gilts
4.1
7.7
4.9
HIPS Corporate Bonds
-3.2
4.5
3.2
HIPS Money Market
-0.1
0.3
0.3
You can find out more information about the individual funds in the HIPS investment guide. If you’re thinking about changing investment funds, we recommend that you seek independent financial advice. You can visit the Financial Conduct Authority’s website at www.fca.org.uk/consumers/finding-adviser if you need help finding an adviser.
