How does the plan work?. Pension Investments - Key Concepts & Terms Equities – company shares Property – buildings i.e. office, retail, industrial units.

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Presentation transcript:

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 ImminentDistant Typical Career Investment Strategy Consensus Diversified Balanced Equity Fund Indexed Global >20 Years Objective: preservation of capital Objective: aggressive growth of capital 5 Years Years Distant Cash / Fixed Interest Managed Fund / Consensus Equity

Cash Fund Active Managed Fund Consensus 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 01/01/1986 Source ILIM 1 year3 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 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 Fund Asset and Country Mix as at

Consensus Fund Performance to 1 st 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 Returns YearConsensusYearConsensus % % % % % % % % % % % % % % % % %2013 YTD8%

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 Asset Allocation  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 1 st 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 – – access to your pension account – pension calculator Smartphone App Pension Pulse

Website Access Members can view their retirement accounts by accessing - 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

Member overview screen

Contributions received

Smartphone App Download from iTunes App store or visit

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 Regulator UL AVC Plan Irish Life

Secured Performance Fund Closed to future money Investment Objective To produce managed fund returns on a smoothed basis - Promise of no negative returns. Investment Strategy  A return is declared annually  Invested in line with Irish Life’s Consensus Fund  Market Value Adjuster (penalty) applies (currently 0%)  Entry and exit conditions to ensure fairness  Single Premiums and Transfer Values are not allowed  Return for 2013 is 0.2% (Net of Fund Management Charge) ` Source: ILIM