New Ireland Retirement Fund (IRIS) 2020

Retirement Fund 2020 (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 sector exposure includes corporate bonds, government bonds, high yield bonds, property, infrastructure, commodities and alternative investments. This gives the fund a broad mix of growth and defensive assets.

Retirement Fund 2020 (3) is designed primarily for pension investors who want to take a retirement lump sum and invest it in an Approved Retirement Fund (ARF) at retirement. The fund is part of the IRIS lifestyle strategy, which is built around an investor’s expected retirement year. It is aimed at people looking for a managed transition into retirement rather than a single static portfolio.

Retirement Fund 2020 (3) follows a lifestyle or lifecycle approach, so it gradually switches money from a higher-risk strategy in earlier years to a medium/low-risk strategy as retirement approaches. This is intended to grow savings first and then help safeguard them nearer retirement. In plain language, the fund is designed to become more cautious over time.

Retirement Fund 2020 (3) carries sustainability risks and short-term volatility risk. Short-term volatility means the value can rise and fall over short periods, even if the long-term plan is to reduce risk before retirement. The fund also uses securities lending in some underlying investments, which can increase risk even though it may help improve returns.

Retirement Fund 2020 (3) is intended for medium to long-term investing, with at least 5-7 years suggested. That timeframe helps reduce the impact of short-term market swings, although the fund can still fluctuate in value over time. It may suit pension investors who want a staged move toward retirement rather than an all-equity approach.