How does the plan work?
description
Transcript of How does the plan work?
How does the plan work?
Pension Investments - Key Concepts & Terms
Equities – company shares
Property – buildings i.e. office, retail, industrial units
Bonds – Governments bonds/fixed interests. Name for loans given to governments
Cash – money on deposit with a variety of banks and for different lengths of time
Managed /Balanced Fund – a fund that invests in: equities, bonds, property and cash
Asset Allocation - the decision re. how much to invest in shares, bonds, property & cash
Stock Selection - the decision as to what shares to buy
Indexed – the fund managers buy shares as per an index i.e. if CRH is 35% of ISEQ then the fund will have 35% invested in CRH
Closeness to Retirement
Safe Deposit Fund Capital / Pension Protection
Imminent Distant
Typical Career Investment Strategy
Consensus Diversified Balanced
Equity FundIndexed Global
>20>20YearsYears
Objective: preservation of capital
Objective:
aggressive growth of c
apital5 5
YearsYears
10-15 10-15 YearsYears
DistantDistant
Cash / Fixed Interest
Managed Fund /
Consensus
Equity
Cash Fund
Active Managed FundConsensus Fund
Fund choices
Indexed 50/50 Equity Fund
Capital Protection Fund
Individual Investment Option Or
Mix of funds
Diversified Balanced Fund
Cash Fund
• Invests 100% in deposit accounts with Banks
• Very secure investment - suitable for employees near retirement
Returns to 01/05/2013
Average fund return since launch is 5.1% p.a.
Launched 01/01/1986Source ILIM
1 year 3 year
-0.3% 0.4%
Objective is to provide members with some benefit of stock market growth with a guarantee of no negative returns
Adopts a cautious approach to investment with 2/3rds in cash and bonds
In addition it offers a guaranteed growth rate. The guaranteed rate for 2013 is 0%
Currently has a Market Value Adjustment of 0% for non demographic exits
Capital Protection Fund
Returns to 01 May 2013 1 Year 3 Year 5 Year 10 Year
% % p.a. % p.a. % p.a.
Capital Protection Fund 8.9% 4.4% 2.9% 2.6%
Asset Allocation 01/05/2013
Consensus Fund
Invested in Equities/Bonds/Property/Cash
Tracks the ‘asset allocation’ of 17 fund managers in Ireland (the split of equities/bonds/cash etc)
Equities – (Index tracking) – only invests in stocks and shares quoted on the various indices e.g. ISEQ/Dow Jones
So not dependant on the view of any one manager
Aims for consistent Top Half Returns
Consensus FundAsset and Country Mix as at 01.05.2013
Consensus Fund
Performance to 1st May 2013
Average fund return since launch is 6.7% p.a.
Source: ILIM
1 yr
p.a.
3 yrs
p.a.
5 yrs
p.a.
15.1% 7.7% 2.6%
Consensus Fund Historical Yearly
ReturnsYear Consensus Year Consensus
1996 15.5% 2005 21.1%
1997 35.1% 2006 13.4%
1998 21.1% 2007 -3.2%
1999 18.6% 2008 -35.1%
2000 2.6% 2009 21.0%
2001 -4.7% 2010 11.0%
2002 -19.0% 2011 -2.9%
2003 11.7% 2012 14.2%
2004 12.5% 2013 YTD 8%
Individual Investment Strategy
• What is a Lifestyle strategy ?
• Strategy aims to reflect the changing investment needs during various stages of your life.
Growth Consolidation ( 5 years )
•
Consensus Fund Capital Protection Fund
Invests in higher risk
funds initially Moves to
lower risk funds
Diversified Balanced Fund
Returns to 1 May 2013 1 Year 3 Year 5 Year
% p.a.% p.a.%
Diversified Balanced Fund 7.5% 2.9% -0.4%
Asset Allocation 01.05.2013
Invested in developed world equities, Eurozone Govt. Bonds, and range Alternative Assets
Objective: Balanced Fund returns with lower volatility levels
Suitable for members with number of years to retirement who wish to pursue a strong growth strategy
Active Managed Fund
• Subject to ups and downs of stock markets
• Volatile recent returns
• Produces good long term returns
•Objective to produce above average managed fund performance
Active Fund Performance to 1st May 2013
Fund returns since launch (1989): 7.3% p.a. Source: ILIM
1 year p.a. 3 years p.a. 5 years p.a.
16.6% 5.7% 1.6%
Indexed 50/50 Equity Fund
• The assets of this fund are fully invested in equities
• 50% is allocated to the Eurozone and 50% to the rest of the world
• Suitable for members with a number of years to retirement and who want an aggressive investment strategy
Returns to 01/05/2013:
Since Launch (Dec 2007): -0.4% p.a.
Source: ILIM
1 yr
p.a.
3 yrs
p.a.
5 yrs
p.a.
18.3% 6.8% 1.9%
Keeping in Touch…….
• Annual Benefit Statements
• PensionPhone service with PIN
• Web access – www.Irishlife.ie/corporatebusiness
• www.pensionplanetinteractive.ie – access to your pension account
• www.pensionprophet.ie – pension calculator
• Smartphone App
• Pension Pulse
Website Access
• Members can view their retirement accounts by accessing - www.pensionplanetinteractive.ie
What information is available ?• Fund Values at any date
• Your Current Fund Choice
• No. of Units and Values in each fund
• All Transactions for previous 24 months
• Monthly Fund Performance Information and flyers
• Your Benefit Statements
• Correspondence
Login screen
www.pensionplanetinteractive.ie
Member overview screen
Contributions received
www.pensionprophet.ie
www.pensionprophet.ie
Smartphone App
Download from iTunes App store or visit www.mypensionapp.ie
Key features
• Your current fund value
• Estimated value of your fund at retirement
• Estimated pension at retirement
• Impact of making AVCs
• Fund factsheets
• Regular market updates.
Irish Life is regulated by the Financial RegulatorIrish Life is regulated by the Financial Regulator
UL AVC Plan
Irish Life
Secured Performance Fund
Closed to future moneyInvestment Objective
To produce managed fund returns on a smoothed basis - Promise of no negative returns.
Investment StrategyA return is declared annually Invested in line with Irish Life’s Consensus FundMarket Value Adjuster (penalty) applies (currently 0%)Entry and exit conditions to ensure fairnessSingle Premiums and Transfer Values are not allowed Return for 2013 is 0.2% (Net of Fund Management Charge)`
Source: ILIM