All Funds: Current Health

What it shows: Percentage of pension funds whose value has risen over the last year versus the percentage of funds whose value has fallen. Also called 'Advance/Decline Ratio'.

Why it matters: The stockmarkets that underlie pension fund values are very variable and this muddies fund owners' understanding of how their own pension fund is performing. However, in any given 12 month period, some pension funds will have risen in value over the preceding 12 months and some will have fallen in value, or will have remained more or less unchanged. The pie chart shows how many funds have risen and how many funds have fallen, creating a simple benchmark against which to assess the performance of your own pension fund.

How to use it: You can use this as a metric to see if your pension fund's performance fits in with the overall market trend. Your pension fund's current performance is available to Pension Angel subscribers.

As a next step, the pie chart can be used to forecast future risks versus future gains. Ie, it shows the proportion of pension savers investing money in 'riskier' equity funds, versus the proportion of pension savers investing in 'safer' gilts, bonds and cash equivalents. Ie, the more green, the more optimism; the more red, the more pessimism. When optimism dominates, the risk of falling values is higher. When red dominates, the risk of falling values is lower. Consider using this indication to help decide whether your monthly pension savings should be directed into equity-based funds or bond/gilt/cash-equivalents.

What next? Use the 'Market Overview | Show Trends' menu item to see trends in how optimism and pessimism change over time.

Or use the 'Help | Benefits' menu item to see how you can easily get an up to date understanding of how your pension fund is performing.