New Ireland Retirement Fund (IRIS) 2014

Retirement Fund 2014 (3) is designed to invest across a broad mix of asset classes, including equities, fixed income, property and cash. Its sector exposure can include corporate bonds, government bonds, high yield bonds, alternative investments, infrastructure and commodities. The fund is managed using the IRIS lifestyle approach, so the mix is intended to change over time as retirement gets closer.

Retirement Fund 2014 (3) is aimed primarily at pension investors who expect to take a retirement lump sum and invest in an Approved Retirement Fund (ARF) at retirement. It is designed for people investing for the medium to long term, typically at least 5 to 7 years. The fund may suit investors who want their pension savings to be managed along a retirement date-driven glide path.

Retirement Fund 2014 (3) follows a glide path that gradually reduces risk as retirement approaches. In the earlier years, it holds a higher-risk investment strategy and then shifts toward a medium to low risk strategy on the run-up to retirement. This means the fund is designed to protect more of the retirement pot as the target retirement year gets closer.

The main risks highlighted for Retirement Fund 2014 (3) are sustainability risks and short-term volatility. Short-term volatility means the fund’s value can rise and fall over shorter periods, even if the long-term aim is to reduce risk near retirement. The fund may also use securities lending in some cases, which can increase risk while seeking extra return.

Retirement Fund 2014 (3) can invest in equities from a wide range of regions, including the U.K., North America, emerging markets, Japan, the Pacific Basin and other European markets. This international spread is part of the fund’s diversified lifecycle design. The fund is managed by State Street Investment Management and Legal and General Investment Management (LGIM) as part of the IRIS range.