New Ireland Retirement Fund (IRIS) 2016

Retirement Fund 2016 (3) invests across equities, fixed income, property and cash through State Street equity, fixed income, property and cash strategies and the LGIM Diversified Fund. Its underlying holdings span sectors such as corporate bonds, government bonds, high yield bonds, infrastructure, commodities and alternatives. The fund also has geographic exposure across the UK, North America, Europe, Japan, the Pacific Basin and emerging markets.

Retirement Fund 2016 (3) is designed primarily for pension investors who expect to take a retirement lump sum and invest in an Approved Retirement Fund (ARF) at retirement. It is part of IRIS, a lifestyle investment strategy that aims to grow and safeguard retirement savings based on the expected year of retirement. The fund is therefore aimed at people saving for retirement rather than short-term investors.

Retirement Fund 2016 (3) follows a glide path that gradually switches money from a higher-risk investment strategy in the earlier years to a medium/low-risk strategy as retirement approaches. In practical terms, this means the fund becomes more cautious over time. This is intended to help protect retirement savings nearer the target retirement year.

Retirement Fund 2016 (3) is exposed to sustainability risks, short-term volatility and securities lending risk. Short-term volatility means the fund's value can move up and down over short periods, even if it is designed for long-term retirement saving. Securities lending means the fund may lend out some of its shares or bonds to earn extra return, which can increase risk.

Retirement Fund 2016 (3) is intended for medium to long-term investing, with a suggested horizon of at least 5-7 years. That time frame gives the lifestyle strategy more time to work through its gradual shift from higher risk to lower risk assets. It is therefore more suitable for retirement savers than for investors needing quick access to their money.