New Ireland Passive IRIS Fund 2012

Passive IRIS 2012 (6P) uses a lifestyle strategy that gradually shifts from a higher-risk mix into a lower-risk, more stable mix as retirement approaches. The fund can hold equities, bonds, alternatives, property and cash, so the asset mix changes over time rather than staying fixed. This design is intended to help protect retirement savings as the target retirement year gets nearer.

Passive IRIS 2012 (6P) is primarily aimed at investors who want to place money into an Approved Retirement Fund at retirement. It is also designed for people with a medium to long-term horizon, typically at least 5 to 7 years. The fund may suit investors who prefer a managed glide path rather than choosing and rebalancing their own asset mix.

Passive IRIS 2012 (6P) is built around a target retirement year of 2012 and follows a lifecycle approach, so its allocation is intended to evolve as retirement approaches. Unlike a static balanced fund, its exposure is adjusted gradually over time to move from growth assets toward a more defensive mix. That means the fund is designed to match an investor's stage in life rather than remain at one risk level.

The main risk highlighted for Passive IRIS 2012 (6P) is sustainability risk, which means environmental, social or governance events could affect the value of the assets it holds. The impact can be greater for equities and property than for bonds or alternatives, especially if a severe event occurs. Because the fund is diversified across several asset classes and regions, that can help reduce the effect of a single adverse event.

Passive IRIS 2012 (6P) is classified as an Article 8 fund and promotes environmental or social characteristics while also investing in companies that follow good governance practices. Its underlying investments do not take into account the EU criteria for environmentally sustainable economic activities. In plain terms, it is not a fully green fund, but it does include ESG-style characteristics in how it is constructed.