New Ireland Retirement Fund (IRIS) 2019

Retirement Fund 2019 (3) invests across equities, fixed income, property and cash, with sector exposure that can include corporate bonds, government bonds, high yield bonds, alternative investments, infrastructure and commodities. It also has geographic exposure across UK, European, North American, emerging market, Japanese and other Pacific Basin equities. As part of the IRIS lifestyle approach, the fund gradually shifts from a higher-risk mix earlier on to a medium/low-risk mix as retirement gets closer.

Retirement Fund 2019 (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. The fund is part of the IRIS range, which is built around an investor's expected retirement year. It is intended for medium to long-term investing, typically at least 5-7 years.

Retirement Fund 2019 (3) follows a glide path that gradually reduces risk over time. In the earlier years it holds a higher-risk investment strategy, then moves toward a medium/low-risk strategy as the target retirement year approaches. This is meant to help grow savings first and then safeguard them nearer retirement.

The main risks listed for Retirement Fund 2019 (3) are sustainability risks, short-term volatility and securities lending. Short-term volatility means the fund's value can move up and down over short periods, even if the longer-term aim is to reduce risk near retirement. Securities lending means some holdings may be temporarily loaned out to try to earn extra return, but this can increase risk.

Retirement Fund 2019 (3) is managed by State Street Investment Management and Legal and General Investment Management (LGIM). The fund sits within the IRIS range and uses a lifecycle structure tied to the 2019 retirement year. This combines the managers' portfolio construction with the automatic risk reduction built into the strategy.