This is part of our quarterly plan performance series. Catch up on last quarter’s summary here: How PensionBee’s plans are performing in 2023 (as at Q4).
2024 began with a market upswing, as the damage from the COVID-19 pandemic and global energy crisis moved even further into the rearview mirror. On the horizon there was excitement about the Artificial Intelligence (AI) revolution and stabilising economies in many developed countries. In short, there was a positive outlook for this year.
Looking ahead at what’s in store for 2024, the financial information provider, S&P Global Market Intelligence, predicted that:
- China’s economy would recover slowly;
- Europe and US stock markets would fall short of their potential;
- inflation would moderate further; and
- interest rates would begin to be cut.
It’s too early to know whether the year will play out this way, but early indications support these predictions. Aside from China, all major stock markets have experienced growth in the first quarter. The wildcard has been the impressive success of Japan’s stock market, the Nikkei 225.
Keep reading to find out how global markets and our PensionBee plans have performed over 2024 so far.
Please note that many stock markets experienced volatility in April 2024. To learn more you can read: Why are financial markets volatile these days?
2024 figures cover the period between 1 January and 31 March 2024.
This blog is only meant to provide information. The data comes from our money managers or plan factsheets. Performance figures are before fees. Past performance isn’t an indicator of what will happen in the future. As with all investments, capital is at risk.
Company shares in 2024 (as at Q1)
What are company shares?
Company shares are units of ownership in a company. When a company wants to raise money, it can issue shares to investors who pay a certain amount of money for each share. By buying shares, investors become part-owners of the company and can enjoy its profits or growth. But, they also take on the risk of a decline in share prices if the company performs poorly or even goes bankrupt. Company shares are also known as ‘stocks’ or ‘equities’, and they’re commonly traded on stock markets.
Global stock markets
Global stock markets had a good start to the year, with strong gains in the first quarter. This was mainly due to a strong US economy and continued momentum around AI. Investors were hopeful about interest rate cuts, which also contributed to the rise in share prices.
| Index | Investment location | Performance over Q1 2024 (%) | Equity proportion (%) |
|---|---|---|---|
| FTSE 250 Index | UK | +1.0% | 100% |
| EuroStoxx 50 Index | Europe (excluding the UK) | +12.4% | 100% |
| S&P 500 Index | North America | +10.2% | 100% |
| Nikkei 225 Index | Japan | +20.6% | 100% |
| Hang Seng Index | Asia Pacific (excluding Japan) | -3.0% | 100% |
Source: BBC Market Data
PensionBee’s equity plans
Equity content refers to the amount of exposure each plan has to global stock markets and other listed risk-on assets, such as property and commodities.
| Plan | Money manager | Performance over Q1 2024 (%) | Equity proportion (%) |
|---|---|---|---|
| Shariah Plan | HSBC (traded via State Street Global Advisors) | +12.5% | 100% |
| Fossil Fuel Free Plan | Legal & General | +8.6% | 100% |
| Impact Plan | BlackRock | +6.6% | 100% |
| Tailored (Vintage 2061 - 2063) Plan | BlackRock | +8.4% | 100% |
| Tailored (Vintage 2055 - 2057) Plan | BlackRock | +8.3% | 100% |
| Tailored (Vintage 2049 - 2051) Plan | BlackRock | +7.9% | 96% |
| Tailored (Vintage 2043 - 2045) Plan | BlackRock | +6.9% | 85% |
| Tracker Plan | State Street Global Advisors | +7.1% | 80% |
| Tailored (Vintage 2037 - 2039) Plan | BlackRock | +5.8% | 72% |
| 4Plus Plan | State Street Global Advisors | +6.5% | 71% ^^ |
| Tailored (Vintage 2031 - 2033) Plan | BlackRock | +4.7% | 59% |
^Equity % at 31 March 2024, asset allocation changes on a weekly basis due to the plan’s actively managed component.
Bonds in 2024 (as at Q1)
What are bonds?
Bonds are a type of investment where you lend money to an organisation, like a government or company. In return, they agree to pay you back with interest over a period of time. A bond yield is the annual return that an investor gets from a bond. Due to their historical stability and predictability, bonds are a popular choice for shorter-term investors such as retirees who plan to draw down in the near future. Bonds are also known as ‘fixed-income securities’.
Global bond markets
The widespread expectation going into 2024 was that inflation and interest rates would swiftly come down over the course of the year. So far inflation has slowly crept down. As a result, Central Banks have been hesitant to declare victory on inflation and interest rates have been held at their current levels in most economies.
| Fund | Source | Performance over Q1 2024 (%) | Fixed-income proportion (%) |
|---|---|---|---|
| Schroder Long Dated Corporate Bond Fund | Morningstar | -1.3% | 91% |
Source: Morningstar
PensionBee’s fixed-income plans
| Plan | Money manager | Performance over Q1 2024 (%) | Fixed-income proportion (%) |
|---|---|---|---|
| Pre-Annuity Plan | State Street Global Advisors | -1.5% | 100% |
| Tailored (LifePath Flexi) Plan | BlackRock | +2.9% | 60% |
| Tailored (Vintage 2025 - 2027) Plan | BlackRock | +3.5% | 48% |
PensionBee’s money market plans
| Plan | Money manager | Performance over Q1 2024 (%) | Cash equivalent proportion (%) |
|---|---|---|---|
| Preserve Plan | State Street Global Advisors | +1.3% | 100% |
Have a question? Get in touch!
Do you want to know more about your pension plan with PensionBee? You can check out our Plans page to learn how your money is invested in different assets and locations, or log in to your BeeHive to see your specific plan. You can always send comments and questions to our team via engagement@pensionbee.com.
Risk warning
As always with investments, your capital is at risk. The value of your investment can go down as well as up, and you may get back less than you invest. This information should not be regarded as financial advice.
