Provider of choice in the Life and Pensions Market
NUI GALWAY PENSION & RETIREMENT PLANNING
PRESENTATION- AVCs 9.30 11.30 14.15
Presenters:
Noel Hackett
- QFA Senior Pension Consultant New Ireland Assurance Galway
Dearbhla Cullen-
State Street Global Advisors Senior Relationship Manager | SSgA |
Wednesday, 24 th June 2015

Pensions Office NUI Galway
Ph: (091) 495028 ext: 5028
Email: pensions @nuigalway.ie
OR
Noel Hackett, QFA, Pensions Consultant
New Ireland Assurance, Atlanta House, 36 Dominick
Street, Galway
Tel: (091) 563023
Mobile: 086- 8186163
Email: Noel.hackett@newireland.ie

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• New Ireland is a leading Life Assurance
Company in Ireland
• Provides life assurance, pensions & investment solutions to over 500,000 customers
• Established almost 100 years ago, New
Ireland was the first wholly Irish owned company to transact business in Ireland
• New Ireland remains Irish owned to this day as part of the Bank of Ireland Group

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• The Company has gone from strength to strength, from just £1,000 in assets in 1918 to over €13.4 billion today (Feb 2014)
• New Ireland employs over 1,100 people with the main Head Office on Dawson Street for over 85 years
• Have world class investment partners for our existing single manager portfolios including
State Street Global Advisors Ireland, Bank of
New York Mellon Asset Management and
Kleinwort Benson Investors

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1. Your Main NUI Galway Pension Schemes
2. Sample Pension Benefit Statement- Scope for Notional Years and AVCs
3 ESMA Risk Rating Scale 1-7
4.The Finance Act 2015 and changes that may affect you
5 Investment Market Update and Investment Outlook for 2015-
Dearbhla Cullen SSgA
6 Fund Choice , Fund Manager , Fund Performance and Fund availability under your AVC Scheme

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At retirement your benefits will come from:-
– State Pension ( PRSI Contributions)
– NUIG Scheme (s)
– Purchase of Notional Years
– Additional Voluntary Contributions ( AVCs )
– Personal Accumulated wealth/savings inheritances

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• Defined Benefit Scheme
• Scheme provides
– Pension
– Lump Sum ( Gratuity )
– Spouses Pension
– Increases during course of payment
– Death in Service Benefit
• Actual benefits depend on when you joined
• Please refer to your NUIG Annual Benefit Statement.
• ( Individual Consultations with Noel Hackett)

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• Pre 95 – no state pension, higher pension through NUIG
• Post 95 - employees pay PRSI and receive:
– State Pension
– Lower pension from NUIG
• 2004
• Future employees have minimum RA of 65
• Immediate early retirement pension available to:
– Existing employees from 50
– New employees from 55
– 2013 - Career Average Earnings

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• From 2014
– Single Person: €230.30 per week
– Married Couple: €383.80
• Applies to all employees who joined since 1995
• State Pension
2014 from age 66
2021 from age 67
2028 from age 68
(Social Welfare will pay Job Assist or other S/W payment- where for whatever reason S/W payment not allowed, a Supplementary Pension maybe paid by
NUIG )

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Was always allowed but only as a deferred pension
Changes from 2004
– Existing employees from 50
– New entrants from 55
– Immediate pension payable
– Early payment reduction

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Purchase of Notional Years of Service
Through NUI Galway Pensions Office
AVC Scheme
Through New Ireland Assurance

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• Employee can buy “notional years”
• Defined Benefit basis
• Must buy year with all the “trimmings”
– Pension
– Gratuity
– Spouses Pension
– Pension Increases

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• Tax Relief
• Tax free growth
• Fund Choice
• Flexibility
• Options at retirement
• Inheritance Tax Planning
• Fund for tax free lump sum, taxable lump sum

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Employee Tax Relief Limits (including AVCs)
Age
Up to 30
30 - 39
40 - 49
50 - 54
55 - 59
60 +
% of Remuneration
15%
20%
25%
30%
35%
40%
- An earnings cap of €115,000 (2015 apply to Employee Pension Contributions for the purpose of tax relief
- The above limits include contributions to NUIG Pension Scheme

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• Monthly Contribution €100.00
• Tax Relief
• Net Cost
Standard rate
€20.00
€80.00
Marginal Rate
€40.00
€60.00
Saving in Bank/Credit Union
Earn gross either €120 or €135.00
before PAYE/PRSI/USC/PRD
€100.00 net invested in Bank/Credit Union
Then its subject to DIRT Tax currently 41% and PRSI 4%
OR
Save €100.00
in Pension ( AVC or Purchase Yrs) that costs you €60.00
or
€80.00 or
Save €100.00 that costs you €120.00 or €135.00
•
Contributions and tax relief operated at source

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Importance of Taxation –PRE/POST
Retirement
Total gross contribution of €100.00
Less tax relief
NET cost of contribution
@20%
€100
€20.00
€80.00
@40%
€100
€40.00
€60.00
Post Retirement Assume €100.00 is still €100- no growth
Tax Free lump sum €100.00 get you €100.00
Nil tax ( PRSI –age exemtion limit ) €100.00 get you €95.00
Standard rate of tax
Marginal rate of tax
€100.00 get you €74.00
€100.00 get you €54.00
Estimates only.

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SAMPLE PENSION STATEMENT and Scope for
AVC and Notional Years Purchase
• 1.NAME
• 2. Employee no
• 3. Gender
• 4. Civil Status
• 5.Date of birth
• 6. Starting pension
• 7.Starting date (JPS)
Noelle Hackett
0123457e female single
20.09.1957
24-Jul-01
01-Nov-02
• 8.Date of Retirement
• 9.Age at retirement
•
10. Pension code
• 11. Location in College
• 12. PPS no
20-Sept-22
65
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Secretary for XXX
• 13. Salary (current)
• 14. Pension Fraction
1234567A
€56,602 12D Pt 5
60ths
•
•
• 15. Pension Fraction (alternative) 80 tths
Social Welfare (A) 11,971 (B) 23,951 (C) 17,963 (D) 39,919

SAMPLE PENSION STATEMENT and Scope for
AVC and Notional Years Purchase- Contd
•
Service Years Claw back
•
•
•
• 16.Actual Service
Purchased
Transferred
19.902
0
Unpaid leave -0.0027
0
0
•
•
•
•
•
•
•
•
• Total (MAX 40)
• 17. Pension based on sixieths (1/60)
Years*Salary (less C acove
Service X (Salary-3.33 OAP)80
19.8997
*1/60
•
• Less clawback 1/9*lump sum c/b €43
€12,772
• 18. Pension based on eightieths 1/80 ( alternative to 17)
Service X (3.33OAP or Sal if less3.33 OAP)200
€12,815
€3,972 per annum
€4,150 per annum
€8,122 per annum
Plus Lump Sum
Years *Salary*3/80= €42,239
First €200K Tax Free
Less Clawback years % of Salary €388
Net of Clawback €41,851
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19
•
19. Death Benefits in retirement
Spouse or civil Partners and Childrens Pension in retirement
Spouse or Civil Partners Pension
½ of pension based on (1/80) per annum
€5,550
Childrens Pension per annum
€1,850
( Social welfare payable to spouse on death under S/W rules)
SERVICE BREAKDOWN THEN LISTED.

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• 1 . Can Purchase Notional Years Service to go from 19.902yrs to 40 Yrs Max- purchase an additional 20.1 yrs
• 2.
Fund AVC for
• (a) Bridge GAP Tax free Lump sum Revenue permits 120/80ths for greater than 20yrs service, 19 yrs =114/80ths of Final
Salary [114/80 of €56,602 = €80,657
• NUI Galway provide 3/80ths for every actual Year
• (59.67/80ths ) €42,239
• Shortfall between Revenue and NUI Galway = €38,418
• FUND AVC FOR €38,418 tax free in addition to NUI
• 2(b) Fund AVC to take upto €80,657 TAX FREE from AVC –
• opt not to take Tax free Lump sum from NUIG in Section 17 , and take higher pension €12,815 per annum .
Permitted once your
Pension is less than 50% of your salary after Tax free Lump sum
– This case €12,815 is only 22.6% and not 50% of €56,602

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• Decision to Take Tax free Lump sum or Higher Pension.
• This Case
• Pension of €12,772 per annum
• Or
• Pension of €8,122 per annum + €42,239 Lump
•
By taking lump from Pension You are losing
€4,650 per annum Guaranteed for
LIFE
• Divide Lump sum by €4650 and that equals 9.08 YRS
•
So if you were to live for at least 9 yrs post retirement or longer then You need to consider the VALUE, the correct choices to be considered.

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• European Securities Market Authority (ESMA) Jan 2014
• Guidelines on all investment funds throughout Europe assessed for risk rating
• 1-very low 2 -Low risk 3- low to medium 4- medium risk
• 5- medium to high 6- high risk 7- very high risk
• Questionnaire 15 questions using EValue to ascertain your
Risk profile
• Email Noel.hackett@newireland.ie
and ask for Questionnaire, and your free Report.
• Risk for both regular investing and lump sum investments.

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• Pension Levy 0.15% in 2015- Abolished in 2016
• Standard Fund Personal Threshold to €2m
• Defined Benefit Changes
• DIRT Tax 41% plus 4% PRSI
• Inheritance Tax Threshold
• Gift Tax
• Age Exemption Limit @ Retirement

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• www.newireland.ie
Pension Schemes On Line (PSOL )
• To track your own pension account
• Secure access to your account
• Values updated daily
New Ireland Investment Centre http://fundcentre.newireland.ie
• Up to date price\performance information
• Monthly factsheets – include asset split, fund size etc
• Graph performance of funds

“ Would you tell me, please, which way I ought to go from here?”
“That depends a good deal on where you want to get to”, said the cat
- Lewis Carroll, Alice in Wonderland
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Lets begin by reminding ourselves of the cornerstone questions of any investment decision…..
Objectives:
What do you want to achieve?
Timeframe:
How long do you have to achieve it?
Risk Profile:
How much risk can/will you take to achieve it?
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Every aspect of investment advice should revolve around always being aware of your views on each of the three key points above!

The events of 2008 still fresh in our memories!
 Sept. 8 th Fannie Mae & Freddie Mac under government control.
 Sept. 14 th Lehman's files for bankruptcy
 Sept 15 th Bank of America purchases Merrill Lynch
 Sept 16 th Fed takes 80% stake in AIG for $85bn
 Sept 18 th Lloyds TSB takes over of HBOS
 Central Banks globally pump $180bn of liquidity into the market
 Market ban on short selling
 Sept 19 th Paulson announces ‘Troubled Asset Relief Program’ – markets soar
 Sept 21 st Goldman's Sachs & Morgan Stanley become Bank holding companies
 Sept 26 th Overnight collapse of Washington Mutual in the biggest US bank failure ever.
 Sept 29 th Announcement that Bradford & Bingley and Fortis are being nationalised.
 Citigroup agrees to buy Wachovia 's banking business.
 Sept 30 th News that Irish government will guarantee all deposits and debt of main credit
 institutions for 2 years
 US Lawmakers vote against proposed treasury rescue package
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1 st week in October 08: As bad a week in markets as we’d seen in decades!
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This left many Investors very nervous about their future finances, long after the market began to recover!
Is it safe to
Come back out?
“Both optimists and pessimists contribute to society, the optimist invents the airplane, the pessimist the parachute”….
George Bernard Shaw
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1926 to 2014 annualised returns of the Standard and Poors equity index.
S&P 500 Index - Total Returns
Year Year
1926 11.62
1945
1927 37.49
1946
1928 43.61
1947
1929 -8.42 1948
1930 -24.90 1949
1931 -43.34 1950
1932 -8.19
1951
1933 53.99 1952
1934 -1.44
1953
1935 47.67 1954
1936 33.92
1955
1937 -35.03 1956
1938 31.12 1957
1939 -0.41
1958
1940 -9.78
1959
1941 -11.59 1960
1942 20.34 1961
1943 25.90
1962
1944 19.75
1963
6.56
-10.78
43.36
11.96
0.47
26.89
-8.73
22.80
24.02
18.37
-0.99
52.62
31.56
36.44
-8.07
5.71
5.50
18.79
31.71
1975
1976
1977
1978
1979
1980
1981
1982
1970
1971
1972
1973
1974
Year
1964
1965
1966
1967
1968
1969
37.20
23.84
-7.18
6.56
18.44
32.42
-4.91
21.41
Year Year
16.48
1983
12.45
1984
-10.06
23.98
11.06
-8.50
1985
1986
1987
1988
4.01
14.31
18.98
-14.66
-26.47
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
1.31
37.43
23.07
33.36
28.58
21.04
-9.10
-11.88
-22.09
22.51 2003 28.68
6.27 2004 10.88
32.16 2005 4.91
18.47 2006 15.80
5.23 2007 5.49
16.81 2008 -36.99
31.49 2009 26.46
-3.17 2010 15.06
30.55 2011 2.11
7.67 2012 16.00
9.99 2013 31.90
2014 13.69

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2011
> 5%
2012
> 4%
2013
.5%
2014
.25%

Inflation may well be an issue in the near future . Challenge!
32

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But we still only have a finite number of assets in which to invest!
Equities
Equities Property
Deposits
Property
Alternatives
Bonds

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Avoiding significant losses should be the starting point for every successful investor!
Loss
-20%
-40%
-60%
-90%
Required Gain
+??%
+??%
+???%
+???%
Minimising losses and reducing investment risk has become more and more important to investors after the great financial crisis of 2008.

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Avoiding significant losses should be the starting point for every successful investor!
Loss
-20%
-40%
-60%
-90%
Required Gain
+25%
+66%
+150%
+900%
Minimising losses and reducing investment risk has become more and more important to investors after the great financial crisis of 2008.

The key learning from recent past…the power of stable returns.
Total return Year 1 Year 2 Year 3
A +20% +20% -10%
B +35% -10% +27.6%
+10% +10% +10% +33.1%
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Source: Newton
“I have two basic rules to investment, Rule no1: Never lose money.
Rule no 2: Never forget rule no 1”!! ……
Warren Buffett

A complex market…which can be difficult to navigate
Customer
Questionnaires
Derivatives for
Protection
ESMA?
Manager
¯
¯
Funds
Rebalancing
?
Tactical Asset
Allocation
Property?
Portfolio
Construction
Total Return
Strategies
Market Neutral
Strategies
Regulation &
Compliance
37

Standard Suite
• Choice of 12 funds
• Independent fund managers
• Different risk levels
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• €2.0 Trillion in Asset Under Management 1
• Over 400 investment professionals
• 27 Global Offices; 9 Investment Centres
• 24 Hour Trading
Rankings:
# 1 Global Endowment/Foundation Assets 2
# 1 Sovereign Wealth Fund Assets 2
# 2 Worldwide Institutional Assets 2
Key Stats:
• We Manage Money for 9 of the Top 10 S&P 500 Companies 3
• We Manage Money for 6 of the Top 20 Wealthiest Countries in the World 3
IREPRS-0681
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1
2
3
AUM is $2.15 Trillion. This AUM includes the assets of the SPDR Gold Trust (approx. $37.1 as of 30 September 2013).
for which State Street Global Markets, LLC, an affiliate of State Street Global Advisors, serves as the marketing agent. Please note that AUM totals are unaudited.
Pensions & Investments, 31 December 2012.
Source: SSgA, as of 31 December 2013. S&P 500 top 10 by market capitalization as of 31 December 2013.
Source: SSgA. Top 20 Wealthiest countries by GDP per Capita as of World Economic Outlook Database — October 2013.

SSgA: Size isn’t Everything…. But it Helps!
Snap shot of how SSgA measure up against some local competitors
1800
1600
1400
1200
1000
800
600
400
200
0
SSgA Great West & Irish Life Aviva Zurich
Global AUM ( € Billion)
Standard Life
IREPRS-0516
40
Source: P&I/Towers Watson Global 500 year end 2012.

Source: New Ireland Fund Centre as at 14 April 2015.
Past performance is not a guarantee of future results. Performance returns for periods of less than one year are not annualized. The performance figures contained herein are provided on a gross of fees basis and do not reflect the deduction of advisory or other fees which could reduce the return. The performance includes the reinvestment of dividends and other corporate earnings and is calculated in in Euro.
41
Source: New Ireland Fund Centre
IREPRS-0960 41

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(as at 14.04.2015)
Source: New Ireland Fund Centre as at 14 April 2015.
Past performance is not a guarantee of future results. Performance returns for periods of less than one year are not annualized. The performance figures contained herein are provided on a gross of fees basis and do not reflect the deduction of advisory or other fees which could reduce the return. The performance includes the reinvestment of dividends and other corporate earnings and is calculated in in Euro.
43

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Active IRIS Glide Path

A Different Approach…
Lifestyling – Moving to safer assets as you get older
Passive approach…
Active IRIS approach…
IREPRS-0740
45
Equities
Source: SSgA.
This chart is for illustrative purposes only.
Absolute Return Bonds / Cash

Target Return to Help Absorb Shocks
Equities
Goal
Early Years
Equities + Absolute Return Fund
Growth phase Retirement
46
Source: SSgA.
This chart is for illustrative purposes only.

47
Target Return Strategy

48

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Passive Management
Why SSgA for Passive?
SSgA’s Trading Advantage Helps Deliver World Class Index Tracking
10%
• 24hr Trading — London, Boston & Hong Kong
0%
• 282 million¹ shares traded every day
-10%
-20%
• 21.8% 2 of shares matched between clients
-30%
• 0.02% 3 trading commission paid on market trades
-40%
= Low Cost and Efficient Trading
1
2
3
SSgA Global Trading Desk for year ending 2012.
Boston Global Passive Equity Desk average, Q2 2013.
Average Commissions paid on traded, Boston Global Passive Equity Desk, Q1 2013.
-50%
SSgA World Index Equity Fund MSCI World net dividends reinvested
IREPRS-0740
50
Source: SSgA, All World Developed Equity Index, MSCI World Net Dividends Re-invested.
Past performance is not a guarantee of future results. The performance includes the reinvestment of dividends and other corporate earnings and is calculated in euro.
The performance figures contained herein are provided on a gross of fees basis only, but net of administrative costs. The performance figures do not reflect the deduction of investment management or other fees which could reduce the return. Index returns are unmanaged and do not reflect the deduction of any fees or expenses. Index returns reflect all items of income, gain and loss and the reinvestment of dividends and other income.

Passive IRIS – Global Equity (MSCI)
Country Allocation
Top 10 Stocks
APPLE INC
EXXON MOBIL CORP
MICROSOFT CORP
GOOGLE INC-CL A
JOHNSON & JOHNSON
GENERAL ELECTRIC CO
WELLS FARGO & CO
NESTLE SA-REG
CHEVRON CORP
JPMORGAN CHASE & CO
% of Fund
1.5%
1.3%
1.0%
1.0%
0.9%
0.8%
0.8%
0.8%
0.7%
0.7%
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Source: Country Allocations and top 10 Holdings: ssga.com as at 31.03.2014

Passive IRIS – Government Bonds
Country Allocation
Key Stats
Approx. Duration
Approx. Yield to maturity
Government
Bonds
6.9
1.2%
Long
Government
Bonds
12.4
1.9%
52
52 Source: Country Allocations Are the neutral benchmark weights for both funds. The Key Stats are provided by SSgA as at 31.03.2014 and are based on the underlying SSgA funds.

Passive IRIS – Corporate Bonds
Key Stats
Benchmark
Effective Duration
Yield to maturity
Number of Issues
Corporate Bond Fund
Barclays Euro-Aggregate
Corporate Bond Index
4.7
1.8%
1,372
53
53 Source: Country Allocations and Key Stats are taken from SSgA.com as at 31.03.2014 and are based on the underlying SSgA fund “SSgA
Euro Corporate Bond Index Fund”.

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• FUND past 12months
• Cash Fund(1)
• 1Gilt Fund (4)
• BNY Mellon(4)
• Elements (3)
• Protected Assets (4)
0.1%
9.0%
5.0%
0.1%
3.4%
3yrs pa 5yrs pa
0.1%
7.3%
5.4% 5.4%
4.5% 4.5%
7.7%
0.4%
5.9% n/a
• Managed (5)
• 2Consensus (5)
• Ethical (5)
• Evergreen (5)
• Equity Fund(6)
14.6%
19.4%
14.7%
16.1%
18.3%
16.2% 11.0%
17.5% 11.8%
15.2%
14.8%
19.5%
• Innovator (6) 7.7% 10.3%
• Funds are updated each day.
10.9%
10.3%
12.9%
5.5%
• ESMA Risk rating 1 to 7 scale
• 18.06.2015.
• 1-GILT FUND 1 month -2.7% 3 month -8.2% yr to date -2.3%
• 2- Changes to Consensus Fund by SSgA

Passive IRIS – Property
Key Stats (Excluding Cash Holding)
Fund Size
# of direct holdings
% of fund in Direct Holdings
Approx. Initial Yield**
(on direct property assets held)
Vacancy Rate
(ERV of vacant assets expressed as % of total
ERV of direct assets)
Weighted Average Term to Break*
Currency Hedging
(level of currency hedging on Non-Euro investments)
€495M
47
90%
6.6%
11.2%
6 Years
50%–
100%
55
55
Source: SSgA. All data is at 31 March 2014 unless otherwise stated subject to change, and should not be relied upon as current thereafter. The weights above are exclusive of cash holdings.
*As at 30 June 2013.
**This is calculated on the basis of contracted rent divided by capital value of direct property holdings and does not take into account any of the costs associated with the fund or property acquisition costs.

Passive IRIS – Cash
Primarily invested in AAA Rated SSgA Liquidity Fund
Over 75 different Cash Instruments held with over 40 different large
Financial Institutions
Weighted Average Maturity of Cash Instruments is 38 Days
Primary Focus is on Safety and Liquidity
56
56
Source: Stats taken from SSgA.com as at 31.03.2014 – SSgA EUR Liquidity Fund

So lets finish by looking at the correct investment process.
1. Your Goals objectives
5. Regular Review
2. Your Risk
Profile
4. Investment
Fund choice
3. Asset Allocation
57

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Pensions Office NUI Galway
Ph: (091) 495028 ext: 5028
Email: pensions @nuigalway.ie
or
Noel Hackett, QFA, Pensions Consultant
New Ireland Assurance, Atlanta House, 36 Dominick Street, Galway
Tel: (091) 563023
Mobile: 086- 8186163
Email: Noel.hackett@newireland.ie

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Noel Hackett will be available (9 – 5pm) for Confidential Individual Consultations
Concourse Room AC 203 (near Smokeys/BOI )
Thurs 25th June 2015 & Friday 26 th June 2015
Contact:
Karen Costello/ Jacqueline Joyce
Extn 5901/5028
Karen.costello@nuigalway.ie
Jacqueline.joyce@nuigalway.ie