Skip this Video
Download Presentation
How does the plan work?

Loading in 2 Seconds...

play fullscreen
1 / 25

How does the plan work? - PowerPoint PPT Presentation

  • Uploaded on

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

I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
Download Presentation

PowerPoint Slideshow about ' How does the plan work?' - tyne

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.

- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript

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
typical career investment strategy



Objective: preservation of capital

10-15 Years


5 Years

Managed Fund / Consensus


aggressive growth of capital

Cash / Fixed Interest

Typical Career Investment Strategy

Closeness to Retirement



Safe Deposit Fund

Capital / Pension Protection


Diversified Balanced

Equity Fund

Indexed Global


Fund choices

Mix of funds

Cash Fund

Capital Protection Fund

Diversified Balanced Fund

Active Managed Fund

Consensus Fund

Indexed 50/50 Equity Fund


Individual Investment Option

cash 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


Capital Protection Fund

Asset Allocation 01/05/2013

  • 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

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 01.05.2013


Consensus Fund

Performance to 1st May 2013

Average fund return since launch is 6.7% p.a.

Source: ILIM


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 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


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
keeping in touch
Annual Benefit Statements

PensionPhone service with PIN

Web access – – access to your pension account – pension calculator

Smartphone App

Pension Pulse

Keeping in Touch…….

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
Login screen

smartphone app
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.

Key features

UL AVC PlanIrish Life

Irish Life is regulated by the Financial Regulator


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