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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

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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

Consensus fund historical yearly returns
Consensus Fund Historical Yearly Returns

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