1 February 2024
At BeFrank, we invest your pension contribution. After all, in the long run, returns on investments are nearly always higher than for returns on savings. In doing so, we take a close look at the returns we can achieve and the risk involved. We also believe it is important to invest sustainably wherever possible, with consideration for people and the environment. Our investment experts constantly review investments to ensure we use a good investment mix. We will adjust your investments in February.
Introduction of an additional fund to keep your pension stable
We invest your pension contributions in a lifecycle. This means we match the investments to your age so that you can accrue the best possible pension. If you’re young, we want to get a lot of return from your investments. We invest with a bit more risk in this case. After all, you still have plenty of time to make up for a bad year. But if your retirement date is approaching, we want your pension to remain as stable as possible. One way we do this is by investing in matching funds. These matching funds reduce the impact of interest rates on the purchase of your pension. From mid-February, we will introduce a fourth matching fund in the Active, Passive and Sustainable Lifecycle called the Liability Matching Fund (XXL).
New: investing in projects with a social purpose
At BeFrank we believe that a healthy financial future goes hand in hand with a healthy world. We believe it is important to invest in a sustainable way. That is why we invest pension capital in businesses that treat people and the environment with respect while retaining the (expected) returns.
We already invest in so-called green bonds. These are green bonds, where we invest in environmentally friendly and sustainable projects, such as the expansion of Leaseplan’s electric vehicle fleet and making PostNL’s mail delivery more sustainable. In mid-January, we also started investing in social bonds in the Passive and Active Lifecycle. These are bonds issued to raise capital for projects with a social purpose. In doing so, we aim to make positive social impact. Financial institutions now mostly issue these social bonds. Investments in social bonds replace investments in ‘ordinary’ corporate bonds.
We will not be adjusting the Sustainable Lifecycle. We already improved this lifecycle last year.
We will adjust your investment mix in February
We invest your capital in various investment funds. The specific funds these are depends on your risk profile and age. The returns of these funds are not equal to each other. As a result, the ratio of funds in your portfolio may become unbalanced during the year. We bring the funds back into the right proportion by rebalancing. That way you do not run more or less investment risk than your risk profile. We rebalance every year on your birthday. We will soon rebalance again due to the adjustment in investments. This way your investments will again match your age and risk profile.
What will you notice as a result of the adjustment?
Adjusting your investments does not require you to do anything else. We will adjust the investments automatically. Starting on 12 February, you will be able to see the purchases and sales of your investments on your personal pension page.