Your AVC Plan, Your Choice
Investment Choice Guide for Public
Sector Employees
taking care of you...
2
Contents
Investing Your Additional Voluntary Contributions
4
Why Investment Choice Is Important
6
Asset Classes & Investment Styles
Lifestyle Funds
– IRIS
Very Low Risk Funds
– Pension Cash Fund
7
12
12
Low to Medium Risk Funds
– Elements Fund
13
13
Medium Risk Funds
– Protected Assets Fund – BNY Mellon Global Real Return Fund – Pension Gilt Fund 14
14
15
16
Medium To High Risk Funds
– Pension Passive Multi-Asset Fund
– Pension Managed Fund
– Pension Evergreen Fund – Pension Ethical Managed Fund 17
17
18
19
20
High Risk Funds
– Pension Indexed All Equity Fund
– Innovator Fund (Pension)
21
21
22
Our Investment Managers
23
Further Information
24
9
9
3
Investing Your Additional
Voluntary Contributions
Investing your Additional Voluntary Contributions (AVCs)
As a member of your Group AVC Plan (the Plan), your contributions are invested
in a pension fund until you retire. When you retire, the accumulated value of
these contributions will be used in accordance with Revenue Rules to top up the
superannuation benefits you will receive from your superannuation scheme.
Depending on your particular circumstances you may be able to receive benefits
in the form of a retirement lump sum, and/or a pension. You also have the option
of investing your AVC fund in an Approved Retirement Fund (ARF) or Approved
Minimum Retirement Fund (AMRF), subject to satisfying certain requirements.
Please refer to your Financial Advisor for more information on this option.
Your Plan offers you a choice from a range of different funds into which
contributions can be invested. This guide provides you with information about
the different investment funds which the Plan offers and is intended to help
you reach a decision in relation to your investment choice. It outlines the main
features of each of the funds, including:
•
Information about the main features of the funds
•
An indication of the level of risk involved
•
The asset split in each fund. Please note that the proportion of each asset
type may change over time (i.e. proportion of equities, fixed interest bonds,
property, cash in which the particular fund invests).
The following pension funds, which are described later in this guide, are available
to you. Please note that these funds may be amended from time to time.
Lifestyling Funds:
Medium to High Risk Funds
• IRIS Retirement Fund
•
•
•
•
Very Low Risk Funds
• Pension Cash Fund
Low to Medium Risk Funds
• Elements Fund
Pension Ethical Managed Fund
Pension Evergreen Fund
Pension Managed Fund
Pension Passive Multi-Asset Fund
High Risk Funds
• Innovator Fund
• Pension Indexed All Equity Fund
Medium Risk Funds
• BNY Mellon Global Real Return Fund
• Pension Gilt Fund
• Protected Assets Fund
Warning: The value of your investment may go down as well as up.
Warning: This fund may be affected by changes in currency exchange rates.
Warning: If you invest in this fund you may lose some or all of the money you invest.
4
Default Investment Strategy
If you do not make or do not wish to make an investment choice, your
contributions will be invested in the Default Investment Strategy selected for
your Plan. The IRIS Retirement Fund is the Default Investment Strategy for your
AVC Plan.
The trustees of your plan have no liability in respect of the funds in which the
contributions are invested or the performance of those funds.
Fund Switches*
At any point you can switch your funds. You can decide that:
• Your future contributions may be invested in another fund
• Part or all of your existing fund can be switched to one or more of the funds
available
• P
art or all of your existing fund can be switched plus future contributions
may be invested into a new fund
It is possible to switch between funds at any stage by completing the
appropriate switch form and submitting it to New Ireland. You can do a free
fund switch once a year (a charge of E25 applies to any additional fund switches
in the year).
* In exceptional circumstances, New Ireland may decide to defer switches encashments from a
particular fund. To find out further information on this, the Trustees of the Plan can provide you
with a copy of the policy conditions. The list of funds currently available for investment can also
be obtained from the Trustees or your Financial Advisor.
Information on the Plan’s pension investment funds, their profiles and their
historical performance is available on our website www.newireland.ie where
you will find further information on your pension fund investment performance.
Who to Contact
If you wish to make changes to your pension investment funds, or if you have
any queries on the investment choices available to you, please contact your
Financial Advisor.
Warning: The value of your investment may go down as well as up.
Warning: This fund may be affected by changes in currency exchange rates.
Warning: If you invest in this fund you may lose some or all of the money you invest.
5
Why Investment Choice Is
Important
One of the most important factors that will affect the value of your AVC Plan
is the investment return that is earned. Contributions are invested in order to
build up a fund that you can use to provide benefits when you retire.
The rate of return earned on your contributions directly affects the size of your
fund when you retire – even an extra 1% p.a. investment growth can make a
significant difference in the long term.
Projected value of your pension fund at retirement
E400,000
E300,000
E200,000
E100,000
E0
3% growth 4% growth 5% growth 6% growth
Source: New Ireland Assurance
Note: These figures are for illustration purposes only, and are based on a gross
contribution of €300 per month and on an investment term from age 35 next birthday
to retirement at age 65. In line with the Society of Actuaries Guidance, the projections
assume future contributions increase at a rate of 2.5% p.a. This is not a forecast, as unit
prices can fall as well as rise and could grow at a faster or slower rate than assumed.
Warning: These figures are estimates only. They are not a reliable guide to
the future performance of your investment.
Warning: The value of your investment may go down as well as up.
Warning: These funds may be affected by changes in currency exchange rates.
Warning: If you invest in this fund you may lose some or all of the money you invest.
6
Asset Classes & Investment
Styles
Asset Classes
Most funds invest in the following asset classes or asset types:
Most pension investment
is made through funds
which contain a mix of these
different asset classes
i. Equities: Equities are company stocks or shares usually quoted on a stock
exchange. Equities can offer the potential for higher returns than other asset
classes (such as cash or bonds) but investing in equities can involve stock
market volatility risk.
ii. Bonds: These include government or corporate bonds which are essentially
long-term loans to a government or company. Traditionally bond returns are
less volatile than equity returns but may be lower than equity returns over
long periods. Fixed income (as opposed to index-linked) bonds are particularly
vulnerable to inflation. Risks involved in investing in bonds include interest rate
risk and credit risk.
iii. Property: Pension funds can invest in commercial property such as offices,
retail outlets, industrial premises or in property related shares. Property
investments can be volatile and can be subject to significant liquidity risk.
iv. Cash: Investing in cash involves investing in deposits and money market
funds. While cash is the least volatile form of asset class the returns tend to be
lower over the longer term than other asset classes and there is a significant
risk that returns will not exceed inflation.
v. Alternatives: Alternative assets are assets that don’t fall within the
above “traditional” asset classes. Alternatives can include commodities,
infrastructure, unquoted equities and foreign currency.
Note: Where an investment involves investing in an asset denominated in a
foreign currency, investing also involves a currency risk.
Investment Styles
Active Management
Active management means that the fund manager uses their expertise and
experience to select what they consider to be the most suitable assets within
agreed limits. For example, a fund manager will select certain equities to invest
in, manage the fund’s investments in commercial property and decide which
government bonds to invest in depending on the prescribed asset allocation
of the fund. These investment decisions are based on analytical research and
forecasting as well as the fund manager’s skill, experience and expertise.
Warning: The value of your investment may go down as well as up.
Warning: This fund may be affected by changes in currency exchange rates.
Warning: If you invest in this fund you may lose some or all of the money you invest.
7
Passive Management
Passive Management is a financial strategy in which a fund manager invests in
accordance with a pre-determined strategy that doesn’t entail any forecasting. The
most popular method is to track an externally specified index. By tracking an index,
an investment portfolio typically gets good diversification and low transaction costs.
Tracking an index also removes the perceived risk of relying on a single fund manager.
Investment Funds
There may be different types of investment funds. The main types include:
Managed Funds
As well as funds which focus on particular asset classes, a managed fund is a
popular approach for pension investors. A managed or mixed asset fund is one
that invests across a range of asset classes. The typical managed fund invests
in the traditional asset classes of cash, equities, bonds and property and aims
to diversify investment within these classes. Managed funds aim to manage
risk by increasing or reducing exposure to the different asset classes.
Absolute Return Funds
Another type of fund available to pension investors are absolute return funds. These
funds seek to make a positive return in all market conditions through the use of
specialised approaches. These funds aim to generate returns in excess of cash returns.
As a pension investor you
must decide on the most
appropriate investment
fund for your money, with
assistance from your
Financial Advisor
As a pension investor you must decide on the most appropriate investment fund
for your money, with assistance from your Financial Advisor.
Which Fund?
In order to help you choose the investment funds for your contributions, you
should consider some important questions including:
1. What level of risk are you comfortable with?
For example, funds that are designed to offer low growth are typically less
risky than those that have the potential to deliver a higher possible growth.
2. What is your main aim for your fund?
For example, is it to beat inflation, to achieve a steady growth or aim for the
maximum growth possible?
In this guide, we have set
out a risk level that we
have determined for each
of the funds available for
your investment
3. What is your investment term?
Typically investors with a longer investment term have the time to ride out
short term fluctuations. However an investor with a short time frame may be
looking to invest in a less volatile fund.
Unfortunately there is no such thing as a risk-free investment. However, there
are many steps that you can take to effectively manage risk, the most important
of which is timing. Pension investing can often be for 20 years or more and
such time usually allows investment funds the opportunity to average out the
highs and lows that markets experience.
Warning: The value of your investment may go down as well as up.
Warning: This fund may be affected by changes in currency exchange rates.
Warning: If you invest in this fund you may lose some or all of the money you invest.
8
Lifestyle Funds
A Lifestyle Investment Strategy is an investment strategy that is specifically
designed for pension investors who, when they retire, wish to take a retirement
lump sum and purchase a pension with the balance of their fund.
This strategy recognises the fact that your investment needs will be different
depending on your term to retirement. It is designed to match these changing
needs by automatically targeting the most appropriate level of risk depending
on your term to retirement. A higher level of risk may be suitable when you
are far from retirement and want time to potentially grow your fund and a
lower level of risk as you near retirement and want less volatility from your
investment fund.
IRIS
Suitable for: All pension investors
Risk level: Lifestyle
Style: Actively managed
Managed by: State Street Global Advisors Ireland Limited
Objective of the fund: To potentially grow and as an investor approaches
retirement, safeguard a pension investor’s retirement savings based on their
expected year of retirement.
Key features
IRIS can initially invest in a mix of equities, property, a Target Return Strategy,
bonds and cash depending on your term to retirement. In the early years the
investment strategy of IRIS is tailored towards achieving higher rates of growth
through investment in assets such as equities, property and the Target Return
Strategy. When retirement is 15 years or less away, the allocation to each asset
class changes gradually so the fund is designed to de-risk as you approach
retirement.
IRIS is actively managed which means that the investment manager decides on
the asset allocation in the fund (within the limits of the investment strategy).
These investment decisions are based on analytical research and forecasting as
well as the fund manager’s skill, experience and expertise. The fund manager
will exercise their discretion within the limits of the IRIS investment strategy.
If you choose the IRIS approach you still have the option to switch to another
approach at a later stage. Please note that if you are considering an ARF/AMRF,
IRIS may not be as appropriate in the years approaching your retirement.
The standard fund related charge applies to this fund.
Warning: The value of your investment may go down as well as up.
Warning: This fund may be affected by changes in currency exchange rates.
Warning: If you invest in this fund you may lose some or all of the money you invest.
9
IRIS Glide Path
15+ Years to Retirement
50%
5%
40%
2%3%
15 Years to Retirement
50%
5%
40%
2% 3%
14 years
47%
13 years
44%
12 years
9 years
8 years
7 years
26%
6 years
4 years
23%
20%
16%
3 years
12%
2 years
8% 1%
16%
4%1% 8%
3% 4%
1 year
2%
14%
40%
2%
13%
32%
24%
7%
At Retirement
13%
10%
17%
1%
2%
4%
15%
6%
30%
10%
45%
60%
75%
14%
20%
16%
12%
8%
13% 1%
13%
41%
3%
11%
10%
42%
3%
10%
9%
43%
4%
9%
7%
43%
4%
8%
6%
43%
5%
29%
5%
42%
5%
32%
4% 7%
41%
5%
35%
3% 5%
40%
5%
38%
10 Years to Retirement
40%
5%
41%
11 years
5 Years to Retirement
5%
15%
20%
25%
The allocation to each asset class shown above is approximate and may change in
the future.
n Equities
n Property
n Target Return Strategy
n Corporate Bonds
n Government Bonds
n Long Bonds
n Cash
Warning: The value of your investment may go down as well as up.
Warning: This fund may be affected by changes in currency exchange rates.
Warning: If you invest in this fund you may lose some or all of the money you invest.
10
The Target Return Strategy
The Target Return Strategy element of IRIS (see glide path on page 10) aims
to return 4% above cash rates, (Cash +4%p.a.) over the medium to long term.
For this element of IRIS the fund manager chooses the mix of asset classes
to invest in. The mix of asset classes is actively managed and can change
substantially depending on the fund manager’s assessment of risks and
expected returns. The table below shows the current weighting range by asset
class for the Target Return Strategy.
Target Return Strategy - current asset class weighting ranges*
Asset Class
Developed Equities
Emerging Equities
Government Bonds
Corporate Bonds (investment grade)
Commodities
Cash
Emerging Market Bonds
High Yield Bonds
Hedge Funds / Alternative Payoff
Infrastructure
Global Real Estate
Weighting range
0% 20%
40%
60%
80%
100%
*As at March 2016
Warning: The value of your investment may go down as well as up.
Warning: This fund may be affected by changes in currency exchange rates.
Warning: If you invest in this fund you may lose some or all of the money you invest.
11
Very Low Risk Funds
Very Low Risk
VERY LOW
1
2
VERY HIGH
3
4
5
6
7
Funds categorised as Very Low Risk have the following characteristics:
• They focus on preservation of capital above all else.
• They involve very little risk to investors’ capital.
• They are only designed as short-term holdings.
• Over the medium to long term, the return on these funds may be less than
inflation and may not be enough to cover product charges.
Investments rated 1 out of 7 on New Ireland’s 7 point scale are considered Very
Low Risk.
Note: The growth on very low risk funds may not always be sufficient to cover
plan charges.
Pension Cash Fund
Recommended investment term: Short-term
VERY LOW
Risk level: Very Low Risk 1
2
VERY HIGH
3
4
5
6
7
Style: Actively managed
Managed by: State Street Global Advisors Ireland Limited
Objective of the Fund: To help maintain the value of members’ capital while
generating a return (before charges) in line with short term deposit rates.
Key features
The fund invests in cash deposits and is most suitable for those investing over
the short-term, and those who do not wish to unduly risk their capital.
This fund is not suitable as a long-term investment.
A fund related charge 0.1% lower than the standard charge applies to this fund.
Other Cash Funds
From time to time other Cash Funds may be made available which provide
a fixed return over a fixed term. You should check with your Financial
Advisor to see if this type of fund is currently available to you.
Warning: The value of your investment may go down as well as up.
Warning: This fund may be affected by changes in currency exchange rates.
Warning: If you invest in this fund you may lose some or all of the money you invest.
12
Low to Medium Risk Funds
Low to Medium Risk
VERY LOW
Low to medium risk funds have the following characteristics:
1
2
VERY HIGH
3
4
5
6
7
• They offer the potential for returns in excess of deposits but do not promise a
minimum return at any time.
• They tend to invest in a range of assets, normally focusing on lower risk
assets such as government bonds and investment grade corporate bonds.
• However, they also typically invest in higher risk assets such as equities,
property and alternatives (e.g.commodities). At times these investments may
be a significant proportion of the fund.
• Investors’ capital is less exposed to market fluctuations than higher risk
investments but investors may get back less than they originally invested
Elements Fund
Recommended investment term: Medium to long-term
VERY LOW
Risk level: Low to Medium Risk 1
2
VERY HIGH
3
4
5
6
7
Style: Actively managed
Managed by: State Street Global Advisors Ireland Limited
Objective of the fund: To earn capital growth for investors over the medium to
long-term with lower risk than that experienced by traditional managed funds.
Elements aims to return 2.5% per annum over cash (1 month EURIBOR) over a
rolling five year period gross of tax and charges. It is important to understand
that the value of your investment may still fall as well as rise and that you may
receive back less than you originally invest.
Note:
The dynamic nature of the fund may see the asset and equity splits change
significantly over time.
Key features
Elements invests in a mixture of equities, fixed interest bonds, cash and
alternative assets to generate a positive long-term return for investors. Elements
has a lower risk / return profile than most managed funds and currently has an
upper limit on its equity allocation of 50%.
Managing risk is one of the primary goals of Elements. Reflecting this the fund
manager, State Street Global Advisors, has much greater scope to invest in lower
risk assets such as bonds and cash should the need arise. Elements can also
invest in other assets, often excluded from traditional managed funds, such as
commodities.
Asset Split as at 31 January 2016
Equities 7.6%
Property 1.9%
Government Bonds 18.6%
Corporate Bonds 24.7%
Cash 45.2%
High Yield Bonds 2%
A fund related charge 0.25% higher than the standard charge applies to this fund.
Warning: The value of your investment may go down as well as up.
Warning: This fund may be affected by changes in currency exchange rates.
Warning: If you invest in this fund you may lose some or all of the money you invest.
13
Medium Risk Funds
Medium Risk
VERY LOW
1
2
VERY HIGH
3
4
5
6
7
Funds categorised as Medium Risk have the following characteristics:
• They offer the potential for returns in excess of deposits but do not promise a
minimum return at any time.
Asset Split as at 31 January 2016
• They tend to invest in a range of assets, including lower risk assets such
as government bonds and investment grade corporate bonds, but are more
focused on higher risk assets such as equities, property and alternatives
(e.g. commodities).
• Investors’ capital is less exposed to market fluctuations than higher risk
investments but investors may get back less than they originally invested.
Investments rated 4 out of 7 on New Ireland’s 7 point scale are considered
Medium Risk.
Cash 67.1%
Equities 29.8%
Protection Assets 3.1%
Protected Assets Fund
Recommended investment term: Medium to long-term
VERY LOW
Geographic Split as at
31 January 2016
Risk level: Medium Risk 1
2
VERY HIGH
3
4
5
6
7
Style: Dynamic investment strategy with explicit downside protection
Managed by: Bank of Ireland Global Markets
Objective of the Fund: To deliver long-term capital growth for investors while
explicitly managing market risk.
Key features
Other Eurozone Equities 42.6%
North American Equities 34.9%
Japanese Equities 10.4%
UK Equities 9.4%
Emerging Market Equities 2.7%
The Protected Assets Fund has been designed to explicitly limit the impact
of downside market movements to investors. The fund’s reaction to market
conditions is two-fold:
• During times of market uncertainty (volatility), a greater share of the fund is
quickly moved to cash, which is designed to protect the value of the fund
• When markets are stable, the fund quickly increases its exposure to the
basket of indices, to increase the potential to grow.
The indices and relative
exposure to each index can be
varied at any time. Exposure
to the individual indices is
automatically reset at the start
of each calendar year.
The Protected Assets Fund provides an explicit promise that in any calendar
year, the value of an investment in the fund (before charges are deducted) will
never fall below 90% of its highest value in that year. Bank of Ireland (BOI)
provides the fund protection to New Ireland. If for any reason, BOI is unable to
meet its obligations, investors could lose some or all of their investment.
A fund related charge 0.25% higher than the standard charge applies to this fund.
Warning: The value of your investment may go down as well as up.
Warning: This fund may be affected by changes in currency exchange rates.
Warning: If you invest in this fund you may lose some or all of the money you invest.
14
BNY Mellon Global Real Return Fund
Recommended investment term: Medium to long-term
VERY LOW
Risk level: Medium Risk 1
2
VERY HIGH
3
4
5
6
7
Style: Actively managed
Managed by: Newton Investment Management, one of BNY Mellon Asset
Management’s specialist asset managers.
Objective of the fund: BNY Mellon Global Real Return Fund aims to return
4% per annum over cash (1 month EURIBOR) over a rolling five year period
(gross of tax and charges). It is important to understand that the value of your
investment may still fall as well as rise and that you may receive back less than
you originally invested.
Key features
The fund invests in a mixture of equities, bonds, cash and alternative assets to
generate a positive long-term return for investors. The fund is more focused on
managing short-term risk than many other managed funds but a substantial
portion of the fund can still be invested in equities. Please note that due to
the type of active management involved in the fund, the asset split of the BNY
Mellon Global Real Return Fund tends to move more quickly (and in larger
amounts) than traditional managed funds.
Newton Investment Management, are a multi-award winning fund manager
and have a proven track record in Absolute Real Return strategies, managing
the Sterling version of the Real Return Fund since 2004.
A fund related charge of 0.35% higher than the standard charge applies to this fund.
Asset Split as at 31 January 2016
Equities 41.8%
Cash 1.8%
A
lternative Investments 9.1%
Government Bonds 39.8%
Corporate Bonds 4.5%
Infrastructure 1.9%
Derivatives 1.1%
Note: The dynamic nature of the fund may see the asset and equity splits
change significantly over time.
Warning: The value of your investment may go down as well as up.
Warning: This fund may be affected by changes in currency exchange rates.
Warning: If you invest in this fund you may lose some or all of the money you invest.
15
Pension Gilt Fund
Recommended investment term: Medium to long-term
VERY LOW
Risk level: Medium Risk
1
2
VERY HIGH
3
4
5
6
7
Style: Actively managed
Managed by: State Street Global Advisors Ireland Limited
Objective of the fund: Pension Gilt fund aims to generate medium to long term
capital growth by investing in a range of government and corporate bonds.
Key features
The Pension Gilt Fund invests in a range of medium and long-term fixed
interest bonds. The majority of these are government-issued but a range of
top quality corporate bonds are also included in the portfolio. Because these
investments pay a regular fixed income, they tend to be less volatile than
investments in stocks and shares. However, the value of the fund can still fall,
particularly over the short or medium term. Gilt funds tend to underperform
share-based funds over the long term, but provide a useful alternative to
equities, particularly as part of a diversified portfolio or fund.
The standard fund related charge applies to this fund.
Bond Split as at 31 January 2016
French Government 40.6%
German Government 21.6%
Belgian Government 12.1%
Dutch Government 10.8%
Austrian Government 6.6%
Other European Government 5.7%
North American Government 1.1%
UK Government 0.7%
Ireland Government 0.4%
Other Euro Government 0.4%
Warning: The value of your investment may go down as well as up.
Warning: This fund may be affected by changes in currency exchange rates.
Warning: If you invest in this fund you may lose some or all of the money you invest.
16
Medium to High Risk Funds
Medium to high risk funds have the following characteristics:
• They aim to generate a return higher than deposits and inflation.
• They typically invest significant proportions in assets such as equities, property
and alternatives (e.g. commodities). They usually hold smaller amounts in lower
risk assets such as government bonds and investment grade corporate bonds.
• Within these asset classes, risk can be reduced by investing across sectors
and geographic regions.
• Investors’ capital is not secure and can fluctuate, sometimes significantly, and
investors may get back less than they originally invested.
Pension Passive Multi-Asset Fund
Recommended investment term: Medium to long-term
VERY LOW
Risk level: Medium to High Risk 1
VERY HIGH
2
3
4
5
6
7
Style: Passively managed
Managed by: State Street Global Advisors Ireland Limited
Objective of the fund: The fund aims to generate capital growth over the long term.
Key features
The graphs below outline the asset split of the Pension Passive Multi-Asset
Fund as well as the equity split by region as at 31 January 2016.
A fund related charge 0.1% lower than the standard charge applies to this fund.
Asset Split as at 31 January 2016 Equities 69.8%
Government Bonds 20.6%
Alternative Investments 3.8%
Cash 5.4%
Property 0.4%
Equity Split as at 31 January 2016
North American Equities 56.3%
Other Pacific Basin Equities 11%
Other Eurozone Equities 10.2%
Japanese Equities 8.6%
UK Equities 6.9%
Other European Equities 5.2%
Emerging Market Equities 1.7%
Irish Equities 0.1%
Note:
Exposure to asset types
and geographic regions
may change over time.
Warning: The value of your investment may go down as well as up.
Warning: This fund may be affected by changes in currency exchange rates.
Warning: If you invest in this fund you may lose some or all of the money you invest.
17
Pension Managed Fund
Recommended investment term: Medium to long-term
VERY LOW
Risk level: Medium to High Risk
1
VERY HIGH
2
3
4
5
6
7
Style: Actively managed
Managed by: State Street Global Advisors Ireland Limited
Objective of the fund: Pension Managed fund aims to generate capital growth
over the medium to long term by investing in a spread of assets across different
geographic regions.
Key features
Managed Funds have historically been among the most popular investment
approach adopted for pension funds in Ireland. The Pension Managed Fund is
a good example – actively managed by State Street Global Advisors Ireland it
invests in a wide range of assets, including Irish and overseas equities, fixed
interest bonds, property and cash. The asset mix will vary at times based on the
investment manager’s view of the relative merits of each of these investment
classes.
The standard fund related charge applies to this fund.
Asset Split as at 31 January 2016 Equity Split as at January 2016
Note:
Exposure to asset types and
geographic regions may change
over time.
Equities 63.1%
North American Equities 42.3%
Cash 7.9%
UK Equities 4.6%
Property 5.9%
Pacific Basin Equities 6.5%
Government Bonds 16.4%
Irish Equities 2.7%
Corporate Bonds 6.7%
Japanese Equities 8.2%
Other Eurozone Equities 26.8%
Other European Equities 6.8%
Other Equities 2.1%
Warning: The value of your investment may go down as well as up.
Warning: This fund may be affected by changes in currency exchange rates.
Warning: If you invest in this fund you may lose some or all of the money you invest.
18
Pension Evergreen Fund
Recommended investment term: Medium to long-term
VERY LOW
Risk level: Medium to High Risk 1
VERY HIGH
2
3
4
5
6
7
Style: Actively managed
Managed by: State Street Global Advisors Ireland Limited (SSGA)
Objective of the fund: To generate long term capital growth by investing in a
mix of assets across geographic regions.
Key features
Evergreen is an investment fund that provides investors with the opportunity to
invest in a diversified mix of assets - equities, property, bonds and cash.
Investments are spread across different asset classes: equities, property,
bonds and cash. In addition, the fund invests across different geographic
regions and sectors. The percentage invested in individual assets is driven by
SSGA’s outlook for individual stocks and the global economy.
The standard fund related charge applies to this fund.
Asset Split as at 31 January 2016 Equity Split as at 31 January 2016
Equities 43.7%
North American Equities 42.1%
Property 27.2%
Other Eurozone Equities 26.5%
Government Bonds 13.7%
Cash 9.8%
Corporate Bonds 5.6%
Japanese Equities 8%
Other European Equities 6.6%
Other Pacific Basin Equities 6.6%
UK Equities 4.6%
Irish Equities 3.4%
Other Equities 2.2%
Note:
Exposure to asset types and geographic regions may change over time.
Warning: The value of your investment may go down as well as up.
Warning: This fund may be affected by changes in currency exchange rates.
Warning: If you invest in this fund you may lose some or all of the money you invest.
19
Pension Ethical Managed Fund
Recommended investment term: Medium to long-term
VERY LOW
Risk level: Medium to High Risk
1
2
VERY HIGH
3
4
5
6
7
Style: Actively managed
Managed by: State Street Global Advisors Ireland Limited
Objective of the fund: Ethical Managed fund aims to generate long term capital
growth by investing in a diversified range of high quality ethical equities,
excluding investments in sensitive areas and avoiding equities which are
considered unethical.
Key features
The Pension Ethical Managed Fund operates to the same investment principles
as the Pension Managed Fund, but equities held are subject to additional
ethical screening. SSGA Ireland’s dedicated Ethical Investment Committee,
which includes independent, non-SSGA Ireland representatives, monitors
stocks in the portfolio to ensure they meet certain ethical standards. Stocks
not meeting these criteria are excluded from the portfolio. Areas of exclusion
include the defence industry, animal testing and environmental damage,
among others.
The standard fund related charge applies to this fund.
Note:
Exposure to asset types and
geographic regions may
change over time.
Asset Split as at 31January 2016
Equity Split as at 31 January 2016
Equities 61.2%
Irish Equities 1.96%
Cash 9.8%
Other Euroland Equities 20.42%
Property 5.6%
U.K. Equities 4.25%
Government Bonds 23.4%
Other European Equities 8.50%
Japanese Equities 10.46%
Other Pacific Basin Equities 9.48%
North American Equities 41.50%
Other Equities 3.43%
Warning: The value of your investment may go down as well as up.
Warning: This fund may be affected by changes in currency exchange rates.
Warning: If you invest in this fund you may lose some or all of the money you invest.
20
High Risk Funds
High Risk
VERY LOW
Funds categorised as High Risk have the following characteristics:
1
2
VERY HIGH
3
4
5
6
7
• The potential return from high risk investments is much higher than
deposits or inflation.
• The focus is on maximising the potential return to investors, rather than
minimising risks.
• Some high risk funds may consist almost entirely of one asset class or be
concentrated in one geographic region or sector.
• Investors’ capital is not secure and may fluctuate significantly. Investors may
get back substantially less than they originally invested.
Investments rated 6 out of 7 on New Ireland’s 7 point scale are considered High Risk.
Pension Indexed All Equity Fund
Recommended investment term: Long-term
VERY LOW
Risk level: High Risk 1
2
VERY HIGH
3
4
5
6
7
Style: Passively managed
Managed by: State Street Global Advisors Ireland Limited
Objective of the Fund: To provide investors with exposure to the performance of
a highly diversified basket of global equities.
Key features
This fund is suited to investors who are comfortable with the volatility that
stock markets can experience, in order to benefit from greater potential
investment returns over the long-term.
The fund is passively managed. Unlike other funds, which aim to outperform an
index or benchmark, this fund aims to replicate the performance of an index,
without any active stock-picking by the fund manager.
The fund’s benchmark is split 50/50 between a leading Eurozone Index and a
leading world non-Eurozone Index, offering investors exposure to a diversified
basket of global shares.
A fund related charge 0.1% lower than the standard charge applies to this product.
Asset Split as at 31 January 2016
North American Equities 34.1%
Other Eurozone Equities 49.8%
UK Equities 4.3%
Other Pacific Basin Equities 3.4%
Japanese Equities 5.3%
Other European Equities 3.1%
Warning: The value of your investment may go down as well as up.
Warning: This fund may be affected by changes in currency exchange rates.
Warning: If you invest in this fund you may lose some or all of the money you invest.
21
Innovator Fund (Pension)
Recommended investment term: Long-term
VERY LOW
Risk level: High Risk 1
2
VERY HIGH
3
4
5
6
7
Style: Actively managed
Managed by: Kleinwort Benson Investors (KBI)
Objective of the fund: To generate long term capital growth by investing
in alternative investment themes including water, alternative energy,
commodities, emerging markets and climate change.
Key features
Innovator provides an opportunity to invest in exciting areas of the global
economy which are expected to benefit from strong growth levels into the future.
The core areas that Innovator invests in are water, agribusiness and climate
change companies as well as commodities and emerging market equities.
One of the key benefits of this fund is the extra level of diversification it can
provide as part of a wider investment portfolio.
A fund related charge 0.25% higher than the standard charge applies to this fund.
Sector Split as at 31 January 2016
Energy Solutions 26.2%
Agri-Business 23.7%
Water 23.5%
Emerging Markets 23.4%
Commodities 3.2%
Warning: The value of your investment may go down as well as up.
Warning: This fund may be affected by changes in currency exchange rates.
Warning: If you invest in this fund you may lose some or all of the money you invest.
22
Our Investment Managers
A range of carefully selected
investment managers
In today’s investment market, investors have many different needs and these
needs change over time. To ensure that we can meet the wide array of needs,
we have chosen a range of investment managers, combining their different
strengths to present a robust investment proposition, offering a choice of
investment styles, from active to passive, and investing across a broad range of
asset classes, geographic regions and market sectors.
State Street Global Advisors (SSGA)
•State Street Global Advisors (SSGA) is a leading global investment manager
•SSGA has 29 offices worldwide including 9 global investment centres (one of
which is in Dublin)
•SSGA offers unrivalled global reach and scale; combined with a local,
experienced team.
Newton Investment Management
•Newton Investment Management is part of the BNY Mellon company
•Over 30 years industry experience
•Demonstrable track record in delivering strong risk adjusted returns to meet
clients’ investment objectives
•An award winning research and investment process
Kleinwort Benson Investors (KBI)
• Kleinwort Benson Investors (KBI) is a boutique international institutional
asset manager specialising in total return investing and environmental
equity investing
• KBI is headquartered in Dublin, Ireland, and has a marketing office in New
York
• Part of the Kleinwort Benson Group
As at March 2016. The list of investment managers is subject to change.
Warning: The value of your investment may go down as well as up.
Warning: This fund may be affected by changes in currency exchange rates.
Warning: If you invest in this fund you may lose some or all of the money you invest.
23
Further Information
About New Ireland
Established in 1918, New Ireland Assurance was the first wholly Irish owned
life assurance company to transact business in Ireland. Today, it is one of the
largest life assurance companies in the country with a comprehensive range
of products to meet financial needs. Since December 1997 it has been a wholly
owned subsidiary of Bank of Ireland. New Ireland Assurance is one of Ireland’s
leading pension providers, managing thousands of individuals’ pension plans as
well as some of the largest pension schemes in the country.
New Ireland Assurance Company plc is regulated by the Central Bank of
Ireland. A member of Bank of Ireland Group.
New Ireland Assurance
9-12 Dawson Street, Dublin 2.
T: 01 617 2000 F: 01 617 2075 E: [email protected] W: www.newireland.ie
About General Investment Trust Ltd (GIT)
General Investment Trust Ltd was established in 1953 to provide professional
pension scheme trustee services. It is a wholly owned subsidiary company of New
Ireland Assurance Company plc.
As one of the longest established trustee services providers in Ireland, General
Investment Trust Ltd currently acts as trustee for over 1,300 pension schemes
from both the public and private sectors.
The directors each have over 30 years experience in the pensions industry, and
have extensive knowledge and skills required for pension scheme governance.
If you would like to contact General Investment Trust Ltd please ring (01) 617 2889
or email [email protected].
Are my benefits secure?
By law your benefits are established under trust keeping the assets separate
to that of your employer. GIT have been appointed as trustees to look after your
interests as members.
Charges
The fund related charge for each fund is outlined throughout the booklet. Other
charges and fees apply to cover the administration and servicing of your AVC
Plan. The charges that apply to the plan, including the standard fund related
charge are available from your trustees.
24
The information contained in this brochure is based on our understanding of
current legislation and Revenue practice as at March 2016.
Terms and conditions apply. It is important to note that tax relief is not
automatically granted, you must apply to and satisfy Revenue requirements.
Revenue limits, terms and conditions apply. Your benefits at retirement may be
subject to tax.
While great care has been taken in its preparation, this brochure is of a general
nature and should not be relied on in relation to a specific issue without taking
appropriate financial, insurance or other professional advice. If any conflict
arises between this brochure and the policy conditions, the policy conditions
will apply.
State Street Global Advisors Ireland Limited is regulated by the Central Bank
of Ireland. Incorporated and registered in Ireland at 40 Mespil Road, Dublin
4. Registered number 145221. Member of the Irish Association of Investment
Managers.
KBI Asset Management Limited is regulated by the Central Bank of Ireland.
BNY Mellon Asset Management International Limited, BNY Mellon Centre,160
Queen Victoria Street, London EC4V 4LA. Registered in England No. 1118580.
Authorised and regulated by the Financial Conduct Authority. CP8083-08-032012(12m).BNY Mellon Asset Management International Limited, BNY Mellon
Global Management Limited (BNY MGM), Newton, Insight, Walter Scott and any
other BNY Mellon entity mentioned are all ultimately owned by The Bank of
New York Mellon Corporation.
New Ireland Assurance Company plc is regulated by the Central Bank of
Ireland. A member of Bank of Ireland Group. The Company may hold units in
the funds mentioned on its own account.
Warning: The value of your investment may go down as well as up.
Warning: The funds may be affected by changes in currency exchange rates.
Warning: If you invest in the funds you may lose some or all of the money you invest.
Warning: Past performance is not a reliable guide to future performance.
25
26
27
New Ireland Assurance Company plc.
11-12 Dawson Street, Dublin 2
T: 01 617 2000 F: 01 617 2075
E: [email protected] W: www.newireland.ie
New Ireland Assurance Company plc is regulated by the Central Bank of Ireland. A member of Bank of Ireland Group.
301390 V4.03.16