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Over the growth stage of your pension plan, the return you may receive will depend on a variety of factors such as:

The number of years the contributions are invested over.
Whether you make regular contributions that may benefit from pound cost averaging, or single premium contributions.
The amount of fees that are deducted from your pension fund.
The level of risk you choose to take with your pension savings.

When you are investing for 5 years or longer, it is generally accepted that the higher the amount of risk you expose your money to, the higher the level of returns you may expect. However, the higher level of risk, the more the value of your money will fluctuate over the growth period. This is why we have appointed an expert to manage the investments under each model portfolio.

Relationship between Risk and Return

The diagrams below should help you understand the different model portfolios and where they stand on the risk-return spectrum which aims to help you decide which level of risk best suits your circumstances.

Low Risk

Prosperity Model Portfolio

Gross Return (2019) 5.22%

All the performance figures referred to in these tables refer to a year-end of 4th April 2019

Gross Return (3 years)15.19%

Gross Return (5 years)29.61%

Type of
Investor
Cautious investor
Potential
for returns
Low / modest returns
Fluctuations
in pension fund
Frequent
but likely to be minor
Modest expected returns

Medium Risk

Prosperity Model Portfolio
Gross Return (2019)8.28%
Gross Return (3 years )30.26%
Gross Return (5 years)47.87%
Type of
Investor
Comfortable to take a medium level of risk
Potential
for returns
Moderate long term returns
Fluctuations
in pension fund
Likely to experience substantial changes +/- to capital value
Medium expected returns

High Risk

Prosperity Model Portfolio
Gross Return (2019)11.49%
Gross Return ( 3 years )49.98%
Gross Return (5 years)67.21%
Type of
Investor
Tolerance for high risk
Potential
for returns
Potential for high returns over the long term
Fluctuations
in pension fund
May be frequent and significant
Higher expected returns
It is important to be aware that past performance is not an indicator of future performance.
Remember that when investing, your capital is at risk. The value of your pension may go up as well as down and you may get back less than you have put in.

Further questions? Contact:

Erica Power

CeMap
Expert in Pension Administration
pension.services@abacus.gi
Tel: +00350 200 78777 ext 385

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