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
7
Lifestyle Funds
– IRIS
9
9
Low Risk Funds
– Pension Cash Fund
12
12
Medium Risk Funds
– Protected Assets Fund
– Elements Fund
– BNYM Global Real Return Fund
– Pension Gilt Fund
13
13
14
15
16
Medium To High Risk Funds
– Pension Consensus Fund
– Pension Managed Fund
– Pension Evergreen Fund
– Ethical Managed Fund
17
17
18
19
20
High Risk Funds
– Pension Equity Fund
– Innovator Fund (Pension)
21
21
22
Our Investment Managers
23
Additional Information
24
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 New Ireland 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 has been designed to provide 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 typical 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
•
•
Pension Consensus Fund
•
Pension Managed Fund
•
Pension Evergreen Fund
•
Ethical Managed Fund
IRIS (default investment fund)
Low Risk Funds
•
Pension Cash Fund
Medium Risk Funds
•
•
•
•
Protected Assets Fund
Elements Fund
BNY Mellon Global Real Return
Fund
Pension Gilt Fund
High Risk Funds
•
Pension Equity Fund
•
Innovator 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 Pension Funds
in which the contributions are invested or the performance of those Pension
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
• Part or all of your existing fund can be switched plus future contributions
may be invested into a new fund
A switching charge will apply. This charge will depend on your Group AVC Plan.
For most Plans, this charge is currently €25.39 per switch.
* 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 New Ireland Financial Advisor.
For an up-to date picture of the performance of these funds, or any other
information on investment choice, please visit our Public Sector Employees
section on our website www.newireland.ie where you will find further
information on your pension fund investment performance, such as:
• The pension funds available to you
• Their performance- Quarterly Performance Factsheet
• Switch Forms
Note for Public Sector Employees
If you are a member of a public sector
pension scheme, it is important to
consider whether you can purchase
‘added years’ in respect of your
membership of that scheme. Further
information on this can be obtained from
your HR department.
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
New Ireland 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. That’s why choosing the right fund to
invest your pension contributions, can make such a difference to the success of
your AVC Plan.
Projected Value of a Pension Fund
Source: New Ireland Assurance
Assumptions: The projected values assume gross contributions of €300
per month (increasing at a rate of 3% per annum) are made from age 35
next birthday to retirement at age 65. The returns are not forecasts as unit
prices can fall as well as rise and could grow at a slower or faster value than
assumed. The assumed investment returns are set out in the graph and are in
line with Society of Actuaries guidance notes. The projected values are gross of
taxes and charges.
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.
As a pension investor you
must decide on the most
appropriate investment
fund for your money, with
assistance from your New
Ireland Financial Advisor
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.
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.
* It is important to note that as all
members of pension schemes have
the option of investing in an Approved
Retirement Fund (ARF) at retirement
(subject to restrictions), you will need to
review your investment fund in the years
approaching retirement as the Lifestyle
Fund may not be suitable if choosing
this option. For more information please
contact your New Ireland Financial
Advisor.
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, see page 7, (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%
September 2013
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
Low Risk Funds
Low Risk
Funds have been categorised as low risk for the following reasons:
•
Low risk investments aim to provide a return in line with, or slightly better
than deposits.
•
Low risk investments involve very little risk to the pension investors’ funds.
•
Low risk funds offer little or no protection against inflation or annuity rate
risk.
Note: The growth on low risk funds may not always be sufficient to cover plan
charges.
Pension Cash Fund
Recommended investment term: Short-term
Risk level: Low Risk
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.
The standard fund related 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 New Ireland
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
Medium Risk Funds
Medium Risk
Funds have been categorised as medium risk for the following reasons:
•
Medium risk investments offer the potential for returns in excess of
deposits but do not promise a minimum return at any time.
•
Medium risk investments tend to invest in a range of assets, which
would normally include lower risk assets such as government bonds and
corporate bonds.
•
However, they can also invest in other assets such as equities, property
and alternatives (e.g. commodities). At times these investments may be a
significant portion of the fund.
•
Pension investors’ funds are less exposed to market fluctuations than most
other investments but they may get back less than they originally invested.
Protected Assets Fund
Indicative Equity Split of the fund
Recommended investment term: Medium to long-term
Risk level: Medium Risk
Style: Dynamic investment strategy with explicit downside protection.
Objective of the fund: To generate capital growth over the medium to long-term
for investors while explicitly managing market risk.
Key features
The Protected Assets Fund is designed to offer investors the opportunity
to share in stock market returns but with significantly reduced risk. 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.
Eurostoxx 50 50%
S&P 500 25%
FTSE 100 10%
The fund invests in a mixture of global equities and cash, with a dynamic
investment strategy:
– In times of high market volatility, exposure to equity indices falls
– In times of low market volatility, exposure to equity indices rises
Please refer to the Protected Assets Fund brochure for full details regarding
the operation of the 90% annual protection and the dynamic investment
strategy of this fund.
The Protected Assets Fund has a specific investment strategy which is linked
to the performance of five mainstream indices. 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.
Nikkei 225 10%
MSCI Emerging Market 5%
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.
A fund related charge of 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
Elements Fund
Recommended investment term: Medium to long-term
Risk level: Medium Risk
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.
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 40%.
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.
A fund related charge of 0.25% higher than the standard charge applies to this
fund.
Indicative Asset Split of the fund
Indicative Equity Split of the fund
Note:
The dynamic nature of the fund
may see the asset and equity splits
change significantly over time.
Equities 20%
Alternatives 10%
Property 10%
Government Bonds 20%
Corporate Bonds 20%
Cash 15%
North American 50%
Eurozone ex. Ireland 15%
UK 10%
Pacific Basin 10%
Japanese 10%
Other 5%
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
Risk level: Medium Risk
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).
Key features
BNY Mellon Global Real Return 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.
Indicative Asset Split of the fund
Indicative Equity Split of the fund
Note:
The dynamic nature of the
fund may see the asset
and equity splits change
significantly over time.
Equities 57%
Bonds 23%
Cash 15%
Other 5%
North American 25.91%
UK 23.83%
European Excluding UK 38.51%
Japan 5.18%
Pacific Basin 5.53%
Other 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.
15
Pension Gilt Fund
Recommended investment term: Medium to long-term
Risk level: Medium Risk
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 corproate 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.
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 been categorised as medium to high risk for the following reasons:
•
Medium to high risk funds aim to generate a return higher than deposits
and inflation.
•
Medium to high risk funds typically invest in assets such as equities, bonds,
property and cash.
•
Within these asset classes, risk is reduced by investing across sectors and
geographic regions.
•
The value of these funds can fluctuate, sometimes significantly and
members may get back less than they originally invested.
Pension Consensus Fund
Recommended investment term: Medium to long-term
Risk level: Medium to High Risk
Style: Passively managed
Managed by: State Street Global Advisors Ireland Limited
Objective of the fund: Pension Consensus fund aims to match the return of the
average Irish pension managed fund.
Key features
The graphs below outline the typical asset split of the Pension Consensus Fund
as well as the typical equity split by region.
A fund related charge of 0.1% lower than the standard charge applies to this fund.
Typical Asset Split of the fund
Typical Equity Split of the fund
Note:
Exposure to asset types and
geographic regions may
change over time.
Equities 65%
Fixed Interest Bond 20%
Cash 10%
Property 5%
European Equities 35%
North American Equities 25%
UK Equities 15%
Irish Equities 10%
Pacific Basin Equities 10%
Japanese Equities 5%
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
Risk level: Medium to High Risk
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.
Typical Asset Split of the fund
Note:
Exposure to asset types and
geographic regions may change
over time.
Typical Equity Split of the fund
Equities 65%
North American Equities 25%
Fixed Interest Bond 25%
Euroland Equities 25%
Cash 5%
UK Equities 15%
Property 5%
Pacific Basin Equities 10%
Non-Euro Equities 10%
Irish Equities 10%
Japanese Equities 5%
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
Risk level: Medium to High Risk
Style: Actively managed
Managed by: State Street Global Advisors Ireland Limited
Objective of the fund: Pension Evergreen fund aims to generate long term
capital growth by investing in a mix of assets across geographic regions.
Key features
The property content of the Pension Evergreen Fund is higher than many other
managed funds currently in the market and as a result has a lower equity content.
The proportion of property assets held in the fund is generally set between 20%
and 30% with the remainder of the portfolio made up of equities, fixed interest
bonds and cash. This diversified high proportion in equities and property allows
for high growth potential.
The standard fund related charge applies to this fund.
Typical Asset Split of the fund
Typical Equity Split of the fund
Note:
Exposure to asset types
and geographic regions
may change over time.
Equities 45%
North American Equities 25%
Property 25%
Euroland Equities 25%
Fixed Interest Bond 20%
UK Equities 15%
Cash 10%
Pacific Basin Equities 10%
Non-Euro Equities 10%
Irish Equities 10%
Japanese Equities 5%
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
Ethical Managed Fund (Pension)
Recommended investment term: Medium to long-term
Risk level: Medium to High Risk
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.
Typical Asset Split of the fund
Typical Equity Split of the fund
Equities 65%
North American Equities 35%
Fixed Interest Bond 25%
Euroland Equities 20%
Cash 5%
Pacific Basin Equities 15%
Property 5%
UK Equities 10%
Non-Euro Equities 10%
Japanese Equities 5%
Irish Equities 5%
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.
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High Risk Funds
High Risk
Funds have been categorised as high risk for the following reasons:
•
The potential return from high risk investments is much higher than
deposits and the rate of inflation.
•
These funds focus on maximising potential return to investors, rather than
minimising risk.
•
Some funds may consist almost entirely of one asset class.
•
These funds may fluctuate significantly and investors may get back less
than they originally invested.
Pension Equity Fund
Recommended investment term: Long-term
Risk level: High Risk
Style: Actively managed
Managed by: State Street Global Advisors Ireland Limited
Objective of the fund: This fund aims to generate long term capital growth by
investing in a widely diversified portfolio of global equities.
Key features
The Pension Equity Fund invests in a portfolio of equities throughout the world.
The fund typically invests 10% or less in Irish equities, with the balance in
overseas equities, as the typical equity split chart below shows. The focus is on
buying shares in large, well-established and profitable companies, with the aim
of generating good investment returns over the long term. As this fund invests
solely in company shares, it should outperform traditional managed funds over
the long term, but will be more volatile in the short to medium term.
The standard fund related charge applies to this fund.
Typical Asset Split of the fund
North American Equities 25%
Euroland Equities 20%
Non-Euro Equities 15%
UK Equities 15%
Pacific Basin Equities 10%
Japanese Equities 7%
Irish Equities 7%
Cash 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.
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Innovator Fund (Pension)
Recommended investment term: Long-term
Risk level: High Risk
Style: Actively managed
Managed by: Kleinwort Benson Investors Dublin Ltd.
Objective of the fund: Innovator Fund (Pension) aims to generate long term
capital growth by investing in alternative investment themes including water,
alternative energy, commodities, emerging markets and climate change.
Key features
The Innovator Fund is managed by KBI Asset Management, and provides access
to a range of alternative investments not included in traditional pension funds.
Innovator focuses on four main areas of investment - Alternative Energy, Water,
Emerging Markets and Commodities. The fund also has the scope to invest in
other assets on a discretionary basis.
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 of 0.25% higher than the standard charge applies to this
fund.
Typical Asset Split of the fund
KBI Water Fund (core) 20%
KBI Alternative Energy Fund (core) 20%
Emerging Markets (core) 20%
Commodities (core) 20%
Climate Change (satellite) 10%
Discretionary (satellite) 10%
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.
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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. Together they combine 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)
• The asset management business of State Street Corporation – dates back
over two centuries
• SSgA is a global leader in asset management
• 29 global offices – 10 investment centres and 24 hour global trading capability
• Employs over 2,300 people around the world (as at December 2012)
• A pioneer in index investing
• Manage over 11.6 trillion in assets worldwide (as at December 2012)
BNY Mellon
• Bank of New York (BNY) Mellon, is one of the world’s major financial services
groups
• It has global operations in 34 countries serving more than 100 markets
• With assets under management of approximately US$1.4trillion (as at 30th
September 2012) BNY Mellon is one of the largest asset managers globally
• The company operates a multi-boutique model with a number of fund
managers allowing BNY Mellon to benefit from international scale while
still harnessing the skill of world class specialist managers such as Newton
Investment Management and Insight Investment Management
Kleinwort Benson Investors Dublin
• Part of the RHJI Group and a sister company of Kleinwort Benson, the UK
financial services institution
• A boutique fund manager with offices in Dublin, New York and London
• Specialists in alternative investments
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Additional Information
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.
Taking Care of You...
Established in 1918, New Ireland Assurance is one of the country’s leading
assurers and provides a range of innovative pension, investment and protection
products. Since December 1997, it has been a wholly owned subsidiary of Bank
of Ireland.
New Ireland has been actively involved in the growth and development of the
retirement planning market in recent years and provides plans to cater for
a wide range of individuals and groups. New Ireland specialises in providing
exceptional service to its clients throughout the duration of their investment
and retirement plans.
General Investment Trust (GIT) Limited is a separate company within the New
Ireland Group and they act as a professional trustee for your Group AVC Plan,
General Investment Trust Limited. Registered in Ireland No. 14852 Registered
Office: 11/12 Dawson Street, Dublin 2. A member of New Ireland Group. GIT is not
regulated by the Central Bank of Ireland.
www.newireland.ie/general-investment-trust
You can contact the Trustees of the Plan, by phone – (01) 617 2374
OR info@git.ie
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.
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25
26
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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.
This brochure is based on our understanding of current legislation and Revenue practice as at
September 2013. Terms & Conditions apply.
Except where otherwise indicated, all indicative illustrations are as at September 2013.
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 financial, insurance or other
professional advice. The content of this brochure is for information purposes only and does
not constitute an offer or recommendation to buy or sell any investment or to subscribe to any
investment management or advisory service. If any conflict arises between this brochure and the
Policy Conditions, the Policy Conditions will apply.
New Ireland Assurance Company plc is regulated by the Central Bank of Ireland. A member of
Bank of Ireland Group.
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 Global Real Return Fund is a Sub-Fund of BNY Mellon Global Funds, plc. BNY Mellon
Global Funds, plc is an open-ended umbrella type investment company with variable capital (ICVC)
and segregated liability between sub-funds, incorporated with limited liability under the laws of
Ireland. It qualifies and is authorised in Ireland by the Central Bank of Ireland as an undertaking
for collective investment in transferable securities pursuant to the European Communities
(Undertakings for Collective Investment in Transferable Securities) Regulations, 2011 (S1. No.
352 of 2011), as amended. The Manager of BNY Mellon Global Funds, plc is BNY Mellon Global
Management Limited. BNY Mellon Global Management Limited, 33 Sir John Rogerson’s Quay,
Dublin 2, Ireland. The Manager is approved as a management company and regulated by the
Central Bank of Ireland under the European Communities (Undertakings for Collective Investment
in Transferable Securities) Regulations, 2011 (S1. No. 352 of 2011), as amended. The Global (ex.
US) Distributor of BNY Mellon Global Funds, plc is BNY Mellon Asset Management International
Limited. BNY Mellon Asset Management International Limited, BNY Mellon Global Management
Limited (BNY MGM), Newton and any other BNY Mellon entity mentioned are all ultimately owned
by The Bank of New York Mellon Corporation.
New Ireland Assurance Company plc.
11-12 Dawson Street, Dublin 2
T: 01 617 2000 F: 01 617 2075
E: info@newireland.ie W: www.newireland.ie
New Ireland Assurance Company plc is regulated by the Central Bank of Ireland. A member of Bank of Ireland Group.
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