Investments and corona virus

09 March 2020

Share prices have fallen the past period due to the corona virus news. That means the value of the investments in your pension pot may also have decreased.

Has this happened before?
Yes, steep falls occur quite often. Stock markets were hit hard during the credit crisis, for example. They recovered afterwards, though, and over the long-term shares on the stock markets have always increased in value. That’s because the economy grows over the long term.

What does LifeSight do?
If you invest via Smart Investing, LifeSight carries out the entire management of your investment portfolio on your behalf. We take a number of steps to protect you in the best way possible against lower stock markets.

We reduce your investment risk as your retirement date draws closer
If your retirement is far away, you automatically invest more in shares and other investments aimed at achieving a high return. These investments entail a higher risk against an acceptable risk. You need a return in order to build up a good pension. And when markets go down, like now, there’s still sufficient time to recover. As your retirement age comes closer, the risk is scaled back and your pension pot is invested increasingly in government bonds. Then, if share prices fall, your pension is barely affected by this, if at all.

Spread and manage the risks
It’s important not to invest everything in the same market. We therefore make sure you invest in different investment funds with the aim of achieving a good return with an acceptable risk. We select the best asset managers to manage your money. It’s invested in European shares, American shares, emerging market shares, but also in real estate and corporate bonds. LifeSight also looks every month if the allocation of your different investments are still correct. If too much or too little is invested in a certain investment category due to major changes in the value, we will re-balance the different investments.

Test and evaluate our investment approach
Every year LifeSight assesses whether the investment approach needs to be adjusted in view of the state of the economy and future forecasts. LifeSight also assesses the performance of the selected asset managers. Our aim is to deliver the best results for you. You don’t have to do
anything yourself.

If you invest in Self-Investing, you select the investment funds yourself and are responsible for your portfolio allocation.

What does this mean for you?
The money you invest is intended for your pension, so it’s important to focus on the long-term and stay calm. History has shown that turbulence recedes and the economy grows over the long-term. We also advise you to check your pension situation from time to time via and the LifeSight app.

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