How PensionBee’s plans are performing in 2026 (as at Q2)

This blog is part of our quarterly plan performance series. Catch up on last quarter’s summary here: How PensionBee’s plans are performing as at Q1 2026.

Much like the soaring temperatures this summer, global financial markets caught their own tailwind in Q2, delivering one of the most resilient recoveries we’ve seen in recent years.

Following a challenging first quarter from the Middle East conflict, the financial markets staged a strong comeback, regaining lost ground to finish on solid footing.

Stock markets and political events across the globe shifted the quarter results. Namely, de-escalation of tensions in the Middle East and the reopening of the Strait of Hormuz; an exceptional chipmakers rally fueled by hyperscale data centre expansions; Keir Starmer’s resignation as UK Prime Minister; and Kevin Warsh taking the helm as America’s new Federal Reserve Chair.

Let’s dive into how these translated into our plans’ performance over the quarter.

This blog is only meant to provide information. The data comes from our money managers. Performance data covers Q2 (1 Apr - 30 Jun 2026), sourced from money managers. Performance figures are before fees. Past performance isn’t an indicator of future performance. As with all investments, capital is at risk.

PensionBee's default plans

4Plus Plan 

The 4Plus Plan is managed by State Street with an end of Q2 equity proportion of 76.7%^ (Q1 26: 31.9%). It’s the default plan for our customers over 50 years of age. The plan is actively managed for volatility in times of market turbulence, whilst targeting an annualised 4% return above the Bank of England base rate, over a minimum five-year period. It aims to balance growth with stability for those approaching retirement or making regular withdrawals.

^Asset allocation, including equity exposure, can change on a weekly basis due to the plan’s actively managed component.

Global Leaders Plan 

The Global Leaders Plan is managed by BlackRock with an equity proportion of 100%. It’s the default plan for our customers aged under 50. The plan invests in around 1,000 of the largest public companies globally. It aims to maximise the growth of pension savings in the years before retirement.

^ The plan was launched in February 2025, so performance data for the 3-year and 5-year periods is currently unavailable.

PensionBee's specialist plans

Climate Plan

The Climate Plan is managed by State Street with an equity proportion of 100%. The plan objectives, following a Paris-Aligned Benchmark and reducing portfolio carbon emissions by 10% a year, are set out in the plan factsheet, which explains how these targets are measured and reported. 

^ The new Paris-aligned strategy was launched in September 2024, so performance data for the 3-year and 5-year periods is currently unavailable.

Shariah Plan

The Shariah Plan is managed by HSBC and traded by State Street with an equity proportion of 100%. The plan invests in the S&P Global Shariah index of over 500 stocks that meet Shariah compliance principles, as set by an independent Shariah Committee.

PensionBee's other plans

Tracker Plan

The Tracker Plan is managed by State Street with an equity proportion of 80%. The remaining 20% is allocated to fixed income. The plan offers a cost-effective way to follow global markets as they move.

Preserve Plan

The Preserve Plan is a money market fund managed by State Street. The plan makes short-term investments in highly creditworthy companies to preserve capital. It's designed for savers who want to take less investment risk, in exchange for lower potential returns.

Learn more about how your pension’s invested

Your pension can be invested in a range of assets like company shares (stocks), bonds, real estate, commodities and cash. Your pension balance fluctuates depending on how these assets perform. See below for a summary of global markets and the performance of our key asset classes in Q2 2026. 

How did global stock markets perform in Q2 2026?

Global stock markets showed a stunning comeback with multiple major stock indices soaring.

^Source: MSCI, FTSE Russell, S&P Global. Data as at 30 June 2026.

Please note that the performance figures above are reported in local currencies, except for the MSCI Asia ex-Japan, which is reported in USD due to the use of multiple currencies among its constituents.

Asia

The tech-heavy Asian market led the way. South Korea’s leading stock index, KOSPI, posted a stellar return of 68%* over the quarter. The key drivers of the index were chipmakers SK Hynix and Samsung Electronics, two of only three companies that make the HBM (high-bandwidth memory) chips that power data centre builds. The MSCI Asia ex-Japan index posted a 27.8% return.

Japan had a solid quarter too. While tech companies like SoftBank drove significant gains, a weak yen played a key role. In an export-heavy economy like Japan, the majority of corporate earnings are generated in US dollars. When these overseas earnings were converted back into a depreciated yen, it translated into record high corporate returns.

*Source: Korea Exchange index data via investing.com, data as at 30 June 2026.

US

Stock investors shifted their interest back into the technology sector, the growth-oriented US stocks had a great quarter, enjoying solid double digit gains as the S&P 500 posted a 14.9% return. The rally was driven by resilient corporate earnings and a de-escalation of conflict in the Middle East that eased global inflation concerns, and renewed AI enthusiasm.

However, there is still a lingering worry about whether the AI bubble may burst. The world’s largest tech companies are pouring huge amounts of business capital into data centre builds without guaranteed near-term returns.

Just as valuation fears increased, the market found a bit of a safety valve in Washington. The notoriously hawkish Kevin Warsh made his debut as the new Chair of the US Federal Reserve in mid-June. In his first Federal Open Market Committee meeting (a group from the US central bank that makes interest rate change decisions), Warsh decided to hold the interest rates steady. This decision gave much needed breathing room to capital-consuming tech giants, and access to stable borrowing costs to fund their hyperscaling data centre projects.

Europe

Europe saw a more balanced return profile across both growth and value, led by the technology and financial sectors. The Netherlands emerged as the top performer among European peers. The Dutch chipmaking powerhouse, ASML, delivered strong earnings results thanks to a massive surge in equipment orders, as chipmakers scrambled to expand capacity for hyperscale data centre projects.

Meanwhile, the European Central Bank (ECB) increased rates at its June meeting. Spanish banks were able to charge more for loans while keeping savings rates very low. This had rapidly increased their profits and attracted stock investors' interest. The MSCI Europe ex-UK posted a solid 14.9% return.

UK

The UK posted a modest gain, with the FTSE 350 up 4.6% over the quarter. The UK market showed great resilience by balancing out sharp movements between its heavyweight energy and financial sectors. This dynamic was triggered when the US and Iran signed a memorandum of understanding to end their conflict and reopen the Strait of Hormuz. As a result, global oil prices started falling, resulting in declines in energy stocks. 

However, the financial sector emerged as a major beneficiary of the agreement. Falling crude prices significantly eased global inflation fears, giving investors the confidence to rotate into value-oriented sectors like financial services. 

On the political side, Prime Minister Keir Starmer’s announcement that he would step down caused barely a ripple, as markets had already priced in the transition well in advance. Investors were prepared for his expected successor, Andy Burnham. In fact, the market seemed to favour the political shift, responding positively to Burnham’s recent signals toward a tightening of fiscal policy.

How did UK bond markets perform in Q2 2026?

UK bond markets experienced a volatile but strong quarter with both corporate and government bonds posting returns. The MSCI GBP Investment Grade Corporate Bond gained 2.8%, while the Bloomberg Barclays UK Gilts gained 2.1%.

As of 30 June 2026, the 4Plus Plan’s bond allocation was 16.3% and the Tracker Plan's UK gilt allocation was 9.8%. Index Source: MSCI and Bloomberg. 

Despite the strong quarter, UK government bonds (also known as gilts) endured a bumpy ride over the three months. The gilt yields fluctuated sharply in May following the Labour Party’s losses in local elections, which triggered Keir Starmer’s resignation as Prime Minister later in the quarter.

However, the impact from this domestic news was neutralised by global geopolitical relief. Driven by the US and Iran agreement and the subsequent reopening of the Strait of Hormuz on 17 June, the oil price eventually dropped. This led to easing inflation fears, fuelling a powerful bond rally. 10-year UK gilt yields ended around 4.88%.

Conclusion

Looking back, the diverging returns of Q1 and Q2 serve as a great reminder of how resilient financial markets are. Ultimately, the volatility and subsequent recovery witnessed this quarter is just one of many cycles the market has successfully navigated in the past and, of course, will handle in the future.

Have a question? Get in touch!

Do you want to know more about your pension plan with PensionBee? Learn more about the top 10 holdings in your pension fund on our blog, which is regularly updated. You can also look at 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.