Your AVC Plan, Your Choice Investment Choice Guide for Public Sector Employees

Transcription

1 Your AVC Plan, Your Choice Investment Choice Guide for Public Sector Employees taking care of you...

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3 Contents Investing Your Additional Voluntary Contributions 4 Why Investment Choice Is Important 6 Asset Classes & Investment Styles 7 Lifestyle Funds 9 IRIS 9 Very Low Risk Funds 12 Pension Cash Fund 12 Low to Medium Risk Funds 13 Elements Fund 13 Medium Risk Funds 14 Protected Assets Fund 14 BNY Mellon Global Real Return Fund 15 Pension Gilt Fund 16 Medium To High Risk Funds 17 Pension Passive Multi-Asset Fund 17 Pension Managed Fund 18 Pension Evergreen Fund 19 Pension Ethical Managed Fund 20 High Risk Funds 21 Pension Indexed All Equity Fund 21 Innovator Fund (Pension) 22 Our Investment Managers 23 Further Information 24 3

4 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 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 provides 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 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: IRIS Retirement Fund Very Low Risk Funds Pension Cash Fund Low to Medium Risk Funds Elements Fund Medium to High Risk Funds Pension Ethical Managed Fund Pension Evergreen Fund Pension Managed Fund Pension Passive Multi-Asset Fund High Risk Funds Innovator Fund Pension Indexed All Equity Fund Medium Risk Funds BNY Mellon Global Real Return Fund Pension Gilt Fund Protected Assets Fund 4

5 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 funds in which the contributions are invested or the performance of those 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 It is possible to switch between funds at any stage by completing the appropriate switch form and submitting it to New Ireland. You can do a free fund switch once a year (a charge of E25 applies to any additional fund switches in the year). * 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 Financial Advisor. Information on the Plan s pension investment funds, their profiles and their historical performance is available on our website where you will find further information on your pension fund investment performance. 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 Financial Advisor. 5

6 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. Projected value of your pension fund at retirement E400,000 E300,000 E200,000 E100,000 E0 3% growth 4% growth 5% growth 6% growth Source: New Ireland Assurance Note: These figures are for illustration purposes only, and are based on a gross contribution of 300 per month and on an investment term from age 35 next birthday to retirement at age 65. In line with the Society of Actuaries Guidance, the projections assume future contributions increase at a rate of 2.5% p.a. This is not a forecast, as unit prices can fall as well as rise and could grow at a faster or slower rate than assumed. Warning: These figures are estimates only. They are not a reliable guide to the future performance of your investment. Warning: These funds may be affected by changes in currency exchange rates. 6

7 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. 7

8 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. 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. As a pension investor you must decide on the most appropriate investment fund for your money, with assistance from your Financial Advisor As a pension investor you must decide on the most appropriate investment fund for your money, with assistance from your Financial Advisor. 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. 8

9 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. If you choose the IRIS approach you still have the option to switch to another approach at a later stage. Please note that if you are considering an ARF/AMRF, IRIS may not be as appropriate in the years approaching your retirement. The standard fund related charge applies to this fund. 9

10 IRIS Glide Path 15+ Years to Retirement 15 Years to Retirement 14 years 13 years 12 years 11 years 10 Years to Retirement 9 years 8 years 7 years 6 years 5 Years to Retirement 4 years 3 years 2 years 1 year At Retirement 50% 5% 40% 2%3% 50% 5% 40% 2% 3% 47% 5% 40% 3% 5% 44% 5% 40% 4% 7% 41% 5% 41% 5% 8% 38% 5% 42% 6% 9% 35% 5% 43% 7% 10% 32% 5% 43% 9% 11% 29% 4% 43% 10% 13% 1% 26% 4% 42% 13% 14% 1% 23% 3% 41% 14% 17% 2% 20% 3% 40% 13% 20% 4% 16% 2% 32% 13% 16% 15% 6% 12% 2% 24% 10% 12% 30% 10% 8% 1% 16% 7% 8% 45% 15% 4%1% 8% 3% 4% 60% 20% 75% 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 10

11 The Target Return Strategy The Target Return Strategy element of IRIS (see glide path on page 10) aims to return 4% above cash rates, (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% *As at March

12 Very Low Risk Funds Very Low Risk Funds categorised as Very Low Risk have the following characteristics: They focus on preservation of capital above all else. They involve very little risk to investors capital. They are only designed as short-term holdings. Over the medium to long term, the return on these funds may be less than inflation and may not be enough to cover product charges. Investments rated 1 out of 7 on New Ireland s 7 point scale are considered Very Low Risk. Note: The growth on very low risk funds may not always be sufficient to cover plan charges. Pension Cash Fund Recommended investment term: Short-term Risk level: Very 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. A fund related charge 0.1% lower than the standard 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 Financial Advisor to see if this type of fund is currently available to you. 12

13 Low to Medium Risk Funds Low to Medium Risk Low to medium risk funds have the following characteristics: They offer the potential for returns in excess of deposits but do not promise a minimum return at any time. They tend to invest in a range of assets, normally focusing on lower risk assets such as government bonds and investment grade corporate bonds. However, they also typically invest in higher risk assets such as equities, property and alternatives (e.g.commodities). At times these investments may be a significant proportion of the fund. Investors capital is less exposed to market fluctuations than higher risk investments but investors may get back less than they originally invested Elements Fund Recommended investment term: Medium to long-term Risk level: Low to 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. It is important to understand that the value of your investment may still fall as well as rise and that you may receive back less than you originally invest. Note: The dynamic nature of the fund may see the asset and equity splits change significantly over time. 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 50%. 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. Asset Split as at 31 January 2016 Equities 7.6% Property 1.9% Government Bonds 18.6% Corporate Bonds 24.7% Cash 45.2% High Yield Bonds 2% A fund related charge 0.25% higher than the standard charge applies to this fund. 13

14 Medium Risk Funds Medium Risk Funds categorised as Medium Risk have the following characteristics: They offer the potential for returns in excess of deposits but do not promise a minimum return at any time. Asset Split as at 31 January 2016 They tend to invest in a range of assets, including lower risk assets such as government bonds and investment grade corporate bonds, but are more focused on higher risk assets such as equities, property and alternatives (e.g. commodities). Investors capital is less exposed to market fluctuations than higher risk investments but investors may get back less than they originally invested. Cash 67.1% Equities 29.8% Protection Assets 3.1% Investments rated 4 out of 7 on New Ireland s 7 point scale are considered Medium Risk. Protected Assets Fund Recommended investment term: Medium to long-term Geographic Split as at 31 January 2016 Risk level: Medium Risk Style: Dynamic investment strategy with explicit downside protection Managed by: Bank of Ireland Global Markets Objective of the Fund: To deliver long-term capital growth for investors while explicitly managing market risk. Other Eurozone Equities 42.6% North American Equities 34.9% Japanese Equities 10.4% UK Equities 9.4% Emerging Market Equities 2.7% Key features The Protected Assets Fund has been designed to explicitly limit the impact of downside market movements to investors. The fund s reaction to market conditions is two-fold: During times of market uncertainty (volatility), a greater share of the fund is quickly moved to cash, which is designed to protect the value of the fund When markets are stable, the fund quickly increases its exposure to the basket of indices, to increase the potential to grow. 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. The Protected Assets Fund provides an explicit promise that 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. 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. A fund related charge 0.25% higher than the standard charge applies to this fund. 14

15 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). It is important to understand that the value of your investment may still fall as well as rise and that you may receive back less than you originally invested. Key features The 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 A fund related charge of 0.35% higher than the standard charge applies to this fund. Asset Split as at 31 January 2016 Equities 41.8% Cash 1.8% Alternative Investments 9.1% Government Bonds 39.8% Corporate Bonds 4.5% Infrastructure 1.9% Derivatives 1.1% Note: The dynamic nature of the fund may see the asset and equity splits change significantly over time. 15

16 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 corporate 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. Bond Split as at 31 January 2016 French Government 40.6% German Government 21.6% Belgian Government 12.1% Dutch Government 10.8% Austrian Government 6.6% Other European Government 5.7% North American Government 1.1% UK Government 0.7% Ireland Government 0.4% Other Euro Government 0.4% 16

17 Medium to High Risk Funds Medium to high risk funds have the following characteristics: They aim to generate a return higher than deposits and inflation. They typically invest significant proportions in assets such as equities, property and alternatives (e.g. commodities). They usually hold smaller amounts in lower risk assets such as government bonds and investment grade corporate bonds. Within these asset classes, risk can be reduced by investing across sectors and geographic regions. Investors capital is not secure and can fluctuate, sometimes significantly, and investors may get back less than they originally invested. Pension Passive Multi-Asset 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: The fund aims to generate capital growth over the long term. Key features The graphs below outline the asset split of the Pension Passive Multi-Asset Fund as well as the equity split by region as at 31 January A fund related charge 0.1% lower than the standard charge applies to this fund. Asset Split as at 31 January 2016 Equity Split as at 31 January 2016 Equities 69.8% Government Bonds 20.6% Alternative Investments 3.8% Cash 5.4% Property 0.4% North American Equities 56.3% Other Pacific Basin Equities 11% Other Eurozone Equities 10.2% Japanese Equities 8.6% UK Equities 6.9% Other European Equities 5.2% Emerging Market Equities 1.7% Irish Equities 0.1% Note: Exposure to asset types and geographic regions may change over time. 17

18 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. Asset Split as at 31 January 2016 Equity Split as at January 2016 Note: Exposure to asset types and geographic regions may change over time. Equities 63.1% North American Equities 42.3% Cash 7.9% UK Equities 4.6% Property 5.9% Pacific Basin Equities 6.5% Government Bonds 16.4% Irish Equities 2.7% Corporate Bonds 6.7% Japanese Equities 8.2% Other Eurozone Equities 26.8% Other European Equities 6.8% Other Equities 2.1% 18

19 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 (SSGA) Objective of the fund: To generate long term capital growth by investing in a mix of assets across geographic regions. Key features Evergreen is an investment fund that provides investors with the opportunity to invest in a diversified mix of assets - equities, property, bonds and cash. Investments are spread across different asset classes: equities, property, bonds and cash. In addition, the fund invests across different geographic regions and sectors. The percentage invested in individual assets is driven by SSGA s outlook for individual stocks and the global economy. The standard fund related charge applies to this fund. Asset Split as at 31 January 2016 Equity Split as at 31 January 2016 Equities 43.7% Property 27.2% Government Bonds 13.7% Cash 9.8% Corporate Bonds 5.6% North American Equities 42.1% Other Eurozone Equities 26.5% Japanese Equities 8% Other European Equities 6.6% Other Pacific Basin Equities 6.6% UK Equities 4.6% Irish Equities 3.4% Other Equities 2.2% Note: Exposure to asset types and geographic regions may change over time. 19

20 Pension Ethical 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: 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. Asset Split as at 31January 2016 Equity Split as at 31 January 2016 Equities 61.2% Irish Equities 1.96% Cash 9.8% Other Euroland Equities 20.42% Property 5.6% U.K. Equities 4.25% Government Bonds 23.4% Other European Equities 8.50% Japanese Equities 10.46% Other Pacific Basin Equities 9.48% North American Equities 41.50% Other Equities 3.43% 20

21 High Risk Funds High Risk Funds categorised as High Risk have the following characteristics: The potential return from high risk investments is much higher than deposits or inflation. The focus is on maximising the potential return to investors, rather than minimising risks. Some high risk funds may consist almost entirely of one asset class or be concentrated in one geographic region or sector. Investors capital is not secure and may fluctuate significantly. Investors may get back substantially less than they originally invested. Investments rated 6 out of 7 on New Ireland s 7 point scale are considered High Risk Pension Indexed All Equity Fund Recommended investment term: Long-term Risk level: High Risk Style: Passively managed Managed by: State Street Global Advisors Ireland Limited Objective of the Fund: To provide investors with exposure to the performance of a highly diversified basket of global equities. Key features This fund is suited to investors who are comfortable with the volatility that stock markets can experience, in order to benefit from greater potential investment returns over the long-term. The fund is passively managed. Unlike other funds, which aim to outperform an index or benchmark, this fund aims to replicate the performance of an index, without any active stock-picking by the fund manager. The fund s benchmark is split 50/50 between a leading Eurozone Index and a leading world non-eurozone Index, offering investors exposure to a diversified basket of global shares. A fund related charge 0.1% lower than the standard charge applies to this product. Asset Split as at 31 January 2016 North American Equities 34.1% Other Eurozone Equities 49.8% UK Equities 4.3% Other Pacific Basin Equities 3.4% Japanese Equities 5.3% Other European Equities 3.1% 21

22 Innovator Fund (Pension) Recommended investment term: Long-term Risk level: High Risk Style: Actively managed Managed by: Kleinwort Benson Investors (KBI) Objective of the fund: To generate long term capital growth by investing in alternative investment themes including water, alternative energy, commodities, emerging markets and climate change. Key features Innovator provides an opportunity to invest in exciting areas of the global economy which are expected to benefit from strong growth levels into the future. The core areas that Innovator invests in are water, agribusiness and climate change companies as well as commodities and emerging market equities. 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 0.25% higher than the standard charge applies to this fund. Sector Split as at 31 January 2016 Energy Solutions 26.2% Agri-Business 23.7% Water 23.5% Emerging Markets 23.4% Commodities 3.2% 22

23 Our 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, combining 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. A range of carefully selected investment managers State Street Global Advisors (SSGA) State Street Global Advisors (SSGA) is a leading global investment manager SSGA has 29 offices worldwide including 9 global investment centres (one of which is in Dublin) SSGA offers unrivalled global reach and scale; combined with a local, experienced team. Newton Investment Management Newton Investment Management is part of the BNY Mellon company Over 30 years industry experience Demonstrable track record in delivering strong risk adjusted returns to meet clients investment objectives An award winning research and investment process Kleinwort Benson Investors (KBI) Kleinwort Benson Investors (KBI) is a boutique international institutional asset manager specialising in total return investing and environmental equity investing KBI is headquartered in Dublin, Ireland, and has a marketing office in New York Part of the Kleinwort Benson Group As at March The list of investment managers is subject to change. 23

24 Further Information About New Ireland Established in 1918, New Ireland Assurance was the first wholly Irish owned life assurance company to transact business in Ireland. Today, it is one of the largest life assurance companies in the country with a comprehensive range of products to meet financial needs. Since December 1997 it has been a wholly owned subsidiary of Bank of Ireland. New Ireland Assurance is one of Ireland s leading pension providers, managing thousands of individuals pension plans as well as some of the largest pension schemes in the country. New Ireland Assurance Company plc is regulated by the Central Bank of Ireland. A member of Bank of Ireland Group. New Ireland Assurance 9-12 Dawson Street, Dublin 2. T: F: E: info@newireland.ie W: About General Investment Trust Ltd (GIT) General Investment Trust Ltd was established in 1953 to provide professional pension scheme trustee services. It is a wholly owned subsidiary company of New Ireland Assurance Company plc. As one of the longest established trustee services providers in Ireland, General Investment Trust Ltd currently acts as trustee for over 1,300 pension schemes from both the public and private sectors. The directors each have over 30 years experience in the pensions industry, and have extensive knowledge and skills required for pension scheme governance. If you would like to contact General Investment Trust Ltd please ring (01) 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. 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. 24

25 The information contained in this brochure is based on our understanding of current legislation and Revenue practice as at March Terms and conditions apply. It is important to note that tax relief is not automatically granted, you must apply to and satisfy Revenue requirements. Revenue limits, terms and conditions apply. Your benefits at retirement may be subject to tax. 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 appropriate financial, insurance or other professional advice. If any conflict arises between this brochure and the policy conditions, the policy conditions will apply. 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 Member of the Irish Association of Investment Managers. KBI Asset Management Limited is regulated by the Central Bank of Ireland. BNY Mellon Asset Management International Limited, BNY Mellon Centre,160 Queen Victoria Street, London EC4V 4LA. Registered in England No Authorised and regulated by the Financial Conduct Authority. CP (12m).BNY Mellon Asset Management International Limited, BNY Mellon Global Management Limited (BNY MGM), Newton, Insight, Walter Scott and any other BNY Mellon entity mentioned are all ultimately owned by The Bank of New York Mellon Corporation. New Ireland Assurance Company plc is regulated by the Central Bank of Ireland. A member of Bank of Ireland Group. The Company may hold units in the funds mentioned on its own account. 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. 25

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28 New Ireland Assurance Company plc Dawson Street, Dublin 2 T: F: E: info@newireland.ie W: New Ireland Assurance Company plc is regulated by the Central Bank of Ireland. A member of Bank of Ireland Group V