Your pension is personal, so your employees want to make their own pension choices. At BeFrank, that’s not a problem. As the employer, you first of all explain your pension scheme to them. After that, your employees decide whether those choices match their situation. We have listed your investment choices below.
We invest your employees’ pension contributions using the lifecycle method. That means we take their age into account. As your employees get older, we reduce the investment risk.
Form of investment
Within the lifecycles, you decide how we invest your employees’ pension contributions. You can choose one of our three forms of investment:
1. Passive investments
We will mainly invest your employees’ pension contributions in funds that aim to follow the market as closely as possible (index trackers). These funds follow the stock market development as closely as possible without deviating from the market. The only exceptions are deliberate exclusions in the context of responsible investment.
2. Active investments
In this form of investment, invest your employees’ pension capital in funds that are actively managed with the aim of outperforming the market. Appointed asset managers respond to market developments. In doing so, they try to get better returns in the long run.
3. Sustainable investments
This lifecycle consists of funds from Triodos. We have selected these funds based on sustainability. We invest exclusively in companies, governments and organisations that have demonstrated their positive impact on the world. In so doing, we also try to achieve good long-term investment returns.
If an employee prefers a different form of investment, they can change it through their personal pension page in a few simple steps.
Good to know: we invest as sustainably as possible in all three lifecycles. Want to find out more? Discover which sustainable choices we make throughout each lifecycle.
Investment risk
As an employer, you set your employees’ standard risk profile. At BeFrank, you can choose from three different risk profiles: neutral, defensive and offensive.
Your employees can adjust their level of investment risk if they wish. They can also choose between very defensive and very offensive risk profiles. On their personal pension page, they answer a number of questions. Based on their answers, a recommended risk profile is generated. We always recommend that employees select the level of investment risk that aligns with that risk profile.
Do It Yourself investing
Your employee might prefer to opt for Do It Yourself investing. At BeFrank, that’s not a problem. However, you do need to allow this and your employees need to be able to demonstrate their understanding of the investment world. For that reason, they have to take a knowledge test first. In addition, their risk profile needs to show that they are willing to take risks.
If they want to opt for DIY investing, your employees can choose from several investment funds. They can choose from fund houses such as Blackrock, Schroders and Northern Trust, for example.