New Ireland Retirement Fund (IRIS) 2022

Retirement Fund 2022 (3) invests across a broad mix of asset classes, including equities, fixed income, property and cash. Its sector exposure can also include corporate bonds, government bonds, high yield bonds, alternatives, infrastructure and commodities. This diversification is designed to help the fund aim for growth while also reducing risk as retirement approaches.

Retirement Fund 2022 (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. The fund is part of the IRIS lifestyle investment strategy, which is built around a member’s expected retirement year. It is intended for investors who want their pension savings managed over the run-up to retirement rather than in a static portfolio.

Retirement Fund 2022 (3) follows a glide path, meaning it gradually shifts money from a higher-risk investment strategy in the earlier years to a medium/low-risk strategy closer to retirement. This is meant to protect more of the pension pot as the target retirement year approaches. In plain language, the fund becomes less exposed to market ups and downs over time.

The main risks highlighted for Retirement Fund 2022 (3) are sustainability risks and short-term volatility. Short-term volatility means the fund’s value can move up and down over short periods, even if the long-term plan is to reduce risk before retirement. Because the fund includes equities and other market-sensitive assets, investors should expect some fluctuations along the way.

Yes, Retirement Fund 2022 (3) is designed for medium to long-term investing, with a recommended horizon of at least 5 to 7 years. That time frame gives the lifestyle strategy more scope to work through market movements and the gradual de-risking process. The fund is managed by State Street Investment Management and Legal and General Investment Management (LGIM).