New Ireland Retirement Fund (IRIS) 2037

Retirement 2037 Fund (3) is an IRIS lifestyle fund that invests across a broad mix of asset classes, including equities, bonds, property, cash and alternatives. It also has geographic exposure across regions such as North America, Europe, Japan, the UK, Ireland and emerging markets. As a lifecycle fund, it is designed to adjust that mix over time rather than stay fixed.

The Retirement 2037 Fund (3) gradually switches from a higher-risk investment strategy in the earlier years to a medium/low-risk strategy as retirement approaches. This is meant to reduce how much the fund is exposed to large swings in value near the target retirement date. In plain language, the fund becomes more cautious over time so savings are less likely to be hit by sharp market drops just before retirement.

Retirement 2037 Fund (3) is aimed primarily at pension investors who expect to take a retirement lump sum and then invest in an Approved Retirement Fund, or ARF, at retirement. It is intended for people with a medium to long-term horizon, typically at least 5-7 years. An ARF is a post-retirement investment wrapper where the retirement pot can remain invested after leaving work.

The main risks in Retirement 2037 Fund (3) include sustainability risks, currency exchange risk, short-term volatility and securities lending risk. Currency exchange risk means overseas investments can rise or fall when exchange rates move, even if the underlying assets have not changed. Securities lending risk means the fund may lend some holdings to earn extra return, but there is a small chance the borrower does not return them as expected.

Retirement 2037 Fund (3) is built around a specific target retirement year of 2037, so its glide path is aligned to that timetable. It is designed to help grow and safeguard pension savings over the years leading up to retirement, while gradually lowering risk as the target date nears. The fund is managed by State Street Investment Management and Legal and General Investment Management (LGIM).