Penfold is that latest provider to offer an allocation to real assets through a new default strategy.
Its new default, strategy, has been specifically designed for Penfold by BlackRock. BlackRock has run Penfold’s investment options since since 2019.
This new default introduces a broader range of investments, designed to increase growth potential while adding additional diversification.
Customers who are more than eight years from retirement, will gain 10 per cent exposure to listed real assets, including real estate, infrastructure and listed private equity. Penfold says this offers additional growth opportunities without the long-term lock-up of traditional private investments.
As customers approach retirement, liquid alternative investment strategies are introduced to the portfolio, with the aim of stabilising returns ahead of potential drawdown.
As core building blocks of The Penfold Plan, BlackRock’s MyMap Select ESG funds expect to achieve a carbon emission intensity score for the Funds that are 30 per cent less carbon intensive compared to similar funds that don’t rule out investments for ESG reasons.
The majority of Penfold customers have been automatically transitioned to this new Penfold Plan.
Penfold describes itself as a ‘disruptor’ to the £8 trillion pensions industry, by offering a purpose-built platform that delivers an more interactive experience for savers.
The Penfold Plan, like Penfold’s existing Lifetime Plan, automatically adjusts risk levels over a customer’s lifetime, and customers can also select their own risk level at any time in the Penfold app. The new plan also offers 100 per cent FSCS protection (no matter how much a customer has saved) for the same cost.
Penfold co-founder Chris Eastwood says: “Our goal is to make saving for retirement simple, accessible, and engaging. By working closely with BlackRock to design a purpose-built investment strategy for customers, we’re introducing an evolved default pension plan that delivers even greater growth potential, enhanced protection, and sustainability – all at no additional cost.”
BlackRock head of UK defined contribution platforms and retirement solutions Tim Hodgson: “We are pleased to support the evolution of Penfold’s default pension plan with a bespoke solution designed for their customers’ investment needs. The new strategy introduces a broader range of investment types, including listed real assets, designed to boost growth potential and provide added diversification.”
