Lifecycle adjustments 2022

23 November 2022


At BeFrank we invest your pension contribution. Because in the long run, returns on investments are nearly always higher than on savings. At the same time, we believe it is important to practice sustainable investing to the greatest extent possible. We are looking at ways to do that better. Every year, our investment experts look at the lifecycles and make adjustments where necessary. In this way, we can be sure we are using the right investment mix and that we are investing more and more sustainably. What exactly did we adjust in 2022? Read more about it here.

Investing in shares of smaller companies
For the Passive and Active Lifecycles, we invest in shares. We will now also invest in the shares of smaller companies. We call them small cap stocks. At first, we only invested in the shares of larger companies in these lifecycles. With small cap stocks, we can focus more on sustainability. We focus on CO2 emissions below market average and we look at the companies that can reduce emissions even more in the future.

In the Passive Lifecycle, we add small cap stocks. In the Active Lifecycle, we add small cap stocks instead of factor investing.

More sustainability in Passive Lifecycle
In the Passive Lifecycle, we focus more on sustainability. We now also integrate sustainability into our investments in emerging market government bonds, focusing on reducing CO2 emissions for now and in the future. In addition, we focus on the potential for conducting a good social policy.

We will rebalance our portfolio
The investment market has shown considerable volatility so far in 2022. As a result, we see negative returns for all risk profiles and lifecycles. Ups and downs are normal, so it is no cause for concern yet. To ensure that the portfolio is sufficiently balanced again, we will rebalance for all participants. We use rebalancing to make sure that the investment mix is back in line with the investment profile and age. We do this every year on the participant’s birthday and one additional time this year.

More investment risk in the risk reduction phase
As you get older, we slowly reduce investment risk. We then invest less and less in shares. We also do this if you have chosen to sort for a variable pension. However, you will continue to invest a larger part of your capital in shares until your retirement date.

Have you chosen to continue investing until your retirement age? Then we will implement a change from December 2022. You end up on your retirement date with a slightly higher investment risk. We expect that more investment risk in the decumulation phase will give more return over the entire term, without the expected returns falling significantly in a negative market.