BNY Mellon Absolute Return Bond Fund - New Ireland Assurance

BNY Mellon Absolute Return Bond Fund
An alternative to
traditional bond funds
Sub-Title
Managed by

Fund Overview
BNY Mellon Absolute Return Bond Fund
An alternative to traditional bond funds
Aim
The fund aims to cater for the significant headwinds that may be facing
bond investors over the coming years. It looks to deliver returns,
irrespective of interest rate direction or economic conditions.
Investment Aim
Cash (as measured by 3-month EURIBOR) +3% p.a. over a rolling 3 year
period (gross of tax and charges).
It is important to understand that the value of your investment may still
fall as well as rise and that you may receive back less than you originally
invested.
Diversified Investment
Approach
Investment is spread across a broad range of bonds and cash-like
instruments to build a globally diversified bond portfolio:
• Government Bonds
• High Yield Bonds and Debt
• Inflation Linked Bonds • Asset-Backed Securities
• Emerging Market Debt • Investment Grade Credit
• Cash + Currency
• Derivatives
Active Fund Management
Explicit focus on active fund management:
• Diversified bond portfolio – by asset type and globally
• Dynamic investment approach – high degree of flexibility to move in/out
and across bonds quickly; both long and short positions can be held to
position the fund for all kinds of market conditions.
• Risk Management – a focus that aims to eliminate unintended risks that
come from investing; derivatives can also be used to minimise downside
risks.
Managed By
Actively managed by Insight Investment Management (Insight) - one of BNY
Mellon’s world class specialist asset managers
Risk Rating
VERY LOW
VERY HIGH
Medium Risk
1 2 3 4
5 6 7
Warning: The value of your investment may go down as well as up.
Warning: This fund may be affected by changes in currency exchange rates.
Warning: Past performance is not a reliable guide to future performance.
Warning: If you invest in this fund you may lose some or all of the money you invest.

How the Fund sets out to
Achieve its Aim
The BNY Mellon Absolute Return Bond Fund offers investors exposure to a
globally diversified bond portfolio and has the potential to provide investors
with a positive return in all kinds of market conditions.
The fund aims to manage the significant headwinds that may be facing bond
investors over the coming years. With global interest rates at record lows,
coupled with the potential inflation risks from governments supporting
economies, it is difficult to see how bonds (and traditional bond funds) will offer
long–term potential to investors.
Traditional bonds funds also have the additional problem of being tied to
unflexible benchmarks. For example, a traditional bond fund may have
exposure to a specific country only because it is in the fund’s benchmark and
not because of its investment merits. A situation that cannot occur in the BNY
Mellon Absolute Return Bond Fund – as each investment stands on its own
merits.
The BNY Mellon Absolute Return Bond Fund is different to traditional bond
funds – it seeks to generate returns irrespective of interest rate direction,
economic conditions or benchmarks, offering investors a real alternative.
Aims to provide returns in all
kinds of market conditions
How the BNY Mellon Absolute Return Bond Fund does this?
1 Diversified Bond Portfolio – Investment can be spread across the
entire bond universe, providing diverse exposure to this single asset
class; represents a ‘best of ideas’ portfolio from across the Insight fund
management team.
2 Dynamic Investment Approach – The fund manager embraces a dynamic
and highly flexible investment approach that can establish both long and
short positions in a broad range of bonds with the aim of achieving a
positive return in all kinds of market conditions. Active risk management
is also an integral part of this investment approach. It aims to only take
on risk that will be rewarded.
3 Strong Active Management – Managed by Insight Investment
Management, one of BNY Mellon’s world class, award winning investment
managers.
Asset Split
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
■ 27.1% Asset Backed Securities
■ 27.2% Derivatives
■ 8.7% Corporate Bonds
■ 4.4% Government Bonds
■ 5.3% Emerging Market Debt
■ 27.3% Cash
Source: BNY Mellon, November 2013
1

1
Diversified Bond Portfolio
Catering for a
comprehensive range
of bond investment
needs
Unlike traditional bond funds, this fund provides a comprehensively diversified
bond portfolio, catering for the needs of many bond investors through a single
fund. The fund is the perfect complement to many investment portfolios.
Spreading the investment across a broad range of bond assets also supports
the risk management goal of the fund.
Below is a flavour of the different types of bonds the fund can have exposure to
(cash and derivative positions can also be held):
Government
& Investment
Grade Corporate
Bonds
The fund can invest in loans (or bonds) issued by
governments or corporates for a defined period of
time at a specified interest rate. As government
bonds are considered safer than those issued by
companies, they tend to offer a lower return than
corporate bonds.
Inflation-Linked
Bonds
A bond that guarantees a return linked to the rate of
inflation if it is held to maturity.
Emerging
Market Debt
This typically refers to bonds issued by governments
of less developed countries. As there is greater risk
associated with these countries, potential returns
tend to be higher.
Asset-Backed
Securities (ABS)
This is a security whose value is backed by a
specified pool of underlying assets. The pools of
underlying assets can include common payments
from credit cards, car loans, and mortgage loans,
royalty payments and movie revenues.
High Yield Bonds
and Loans
A high-yield bond is rated below investment grade.
These bonds have a higher risk of default or other
adverse credit events, but typically pay higher
yields than better quality bonds to make them
attractive to investors.
Freedom Ranges
Government Bonds +/- 100%
Investment Grade Corporate Bonds +/- 100%
Inflation–Linked Bonds +/- 100%
High Yield Bonds +/- 35%
Emerging Market Debt +/- 25%
Unhedged Currency Risk Up to 20%
Cash +/- 100%
Source: Insight, November 2013
Subject to change.
Duration to be within +/- 5 years of 3 month EURIBOR
Long & short positions in derivatives – credit, interest rates and inflation
2

2
Dynamic Investment Approach
Insight believe that long-term portfolio returns are best generated by investing
in a wide range of bond investment opportunities. To ensure the fund manager
can maximise these opportunities they have the flexibility to move in/out and
across assets quickly (see previous page). Insight also has the ability to use
long and short positions in derivatives with the aim of exploiting opportunities
in the most efficient way and to generate returns in all kinds of markets.
Award winning investment
team
At the heart of Insight’s dynamic investment approach is their investment
philosophy and process.
Investment Philosophy
Insight’s bond philosophy focuses on two key investment principles – precision
and diversification.
Two key investment principles:
Precision - In assessing investment opportunities, the investment team seeks
to include only those elements of the market that they consider attractive, and
to eliminate unintended risks.
Key investment principles:
1 Precision
2 Diversification
Diversification – The fund managers seek to add value through active
management of risk and return across a broad range of opportunities,
to ensure that the sources of added value are diverse, and that no single
investment decision comes to dominate over time.
Investment Process
Five broad investment areas have been identified as the main sources of
potential added value and risk.
Risk management is an
integral part of the fund
1. Market Allocation
2. Duration and Yield
Curve
4. Security Selection
5. Currency Selection
Investment Process
BNY Mellon
Absolute Return
Bond Fund
3. Credit Strategy
Across each of these areas, the decision to invest is based on both strategic
and tactical perspectives. The team uses both qualitative and quantitative
inputs to make informed investment decisions. Insight combine robust
fundamental analysis with the output from relative opportunities analysis to
consistently add value from investing in different bond opportunities.
Currency positions are based on a medium-term outlook of what will drive
changes in currencies relative to each other.
The level of emphasis on each area
can vary at different points in time,
in accordance with prevailing market
conditions
Warning: The value of your investment may go down as well as up.
Warning: This fund may be affected by changes in currency exchange rates.
Warning: Past performance is not a reliable guide to future performance.
Warning: If you invest in this fund you may lose some or all of the money you invest.
3

3 Strong Active Management
BNY Mellon – Global Scale
With assets under management of approximately $1.5 trillion (as at December
2013), BNY Mellon is one of the largest investment managers globally. With
industry-leading teams in 35 countries and more than 100 markets worldwide,
it is dedicated to creating innovative financial services. The company operates a
multi-boutique model with a number of asset managers (currently 16), allowing
BNY Mellon to benefit from international scale while harnessing the skill of
world class specialists including Insight Investment Management.
7th largest global
asset manager
Pensions &
Investments, 2012
7th largest US
asset manager
Institutional
Investor, 2012
8th largest US
wealth manager
Barron’s, The Top Wealth
Management Firms, 15
September 2012
Insight Investment Management (Insight)
Insight are a leading UK investment manager with a reputation for excellence in
liability risk management, active fixed income and active absolute return style
investing. Launched in 2002, Insight now manages in excess of €300 billion*
in assets under management across liability driven investment, currency
management, fixed income, absolute return, multi-asset and specialist
investment strategies.
In 2012, Insight won six industry awards, bringing its total to 33 over the last
five years. These include:
European Pensions
Awards 2012
Fixed Income Manager
of the Year
Financial News 2012
Winner
Fixed Income Asset
Manager of the Year
Global Pensions
Awards 2011
Derivatives Manager
of the Year
*All data at 30 June 2013. Insight’s assets under management are represented by the value of cash
securities and other economic exposure managed for clients. Performance data applies to Insight
managed portfolios as at 30 June 2013 only.
4

Why Absolute Return Style
Investing For Bonds?
While only launched in June 2012, the BNY Mellon Absolute Return Bond Fund
(the fund) has already demonstrated the merits for investing in an absolute
return bond fund, particularly when compared to a traditional bond fund in
today’s economic environment.
The chart below shows the performance of the fund since launch in June 2012
versus the New Ireland Gilt Fund, an example of a traditional bond fund. The
chart demonstrates:
• The smoother journey of the fund compared to a traditional bond fund
• The outperformance of the fund compared to the New Ireland Gilt Fund.
BNY Mellon Absolute Return Bond Fund
Gilt Fund
10
8.3%
7.5
5
4.3%
2.5
0
-2.5
Sep ‘12 Jan ‘13 May ‘13 Sep ‘13
Source: Moneymate. Performance of the BNY Mellon Absolute Return Fund S6 and the Gilt Fund S6
from 08/06/2012 to 06/12/2013 is quoted gross of tax and fund management charges.
Warning: The value of your investment may go down as well as up.
Warning: This fund may be affected by changes in currency exchange rates.
Warning: Past performance is not a reliable guide to future performance.
Warning: If you invest in this fund you may lose some or all of the money you invest.
5

Other Information
Minimum Recommended Investment Period
Investing should always be considered over the medium to long-term (typically, 5-7
years or more) so as to give the underlying assets time to grow in value. However,
even long-term investing involves risk as values will fluctuate over time.
VERY LOW
VERY HIGH
1 2 3 5 6 7
Risk Rating – Medium Risk
4
At New Ireland we classify our wide range of funds into different risk categories
to help you better understand the risks to your original investment.
We rate the BNY Mellon Absolute Return Bond Fund as a medium risk
investment fund. Funds categorised as medium risk have the following
characteristics:
• They offer the potential for returns in excess of deposits but do not promise a
minimum return at any time
• They tend to invest in a range of assets, including lower risk assets such
as government bonds and investment grade corporate bonds, but are more
focused on higher risk assets such as equities, property and alternatives
(e.g. commodities)
• Investors’ capital is less exposed to market fluctuations than higher risk
investments but investors may get back less than they originally invested
Product Availability
The BNY Mellon Absolute Return Bond Fund is available to investors through
the following New Ireland products:
• SmartFunds
• FutureSave
• Personal Retirement Plan
• Executive Retirement Plan
• Trustee Investment Plan
• Personal Retirement Bond
• Group Pensions
• Approved Retirement Fund (ARF)
• Approved Minimum Retirement
Fund (AMRF)
• AVCs
• PRSA (non-standard)
Charges
Normal product charges and allocation rates for these products apply,
with the exception that the fund management charge for the BNY Mellon
Absolute Return Bond Fund is 0.35% per annum higher than on standard
funds.
6

Glossary
Derivatives
A derivative is an investment instrument whose value can rise or fall in line with
some other asset – the value of the derivative is ‘derived’ from some external
measure such as the share price of an individual company, a stock market index
or the price of oil. Derivatives offer much greater flexibility than simply buying or
selling the underlying assets. For example, a derivative could be used to protect an
investment from a rise in interest rates in the US versus the Eurozone, the US dollar
outperforming the euro. If used unwisely, derivatives can be very risky. The term
derivative covers a wide range of investment assets – these can include futures,
swaps and options.
Insight can use derivatives to take long and short positions to both generate a return
for the fund and also to protect the fund against downside risks. Typically these are
used in credit, interest rates and inflation. These have the ability to reduce the overall
risk of the fund.
Cash
Cash investments are in top-rated, highly liquid cash funds. In line with the fund’s
strategy, there could be extreme instances where the fund holds 100% in cash.
Short selling of an asset is a term used to describe how an investor can attempt to
make money from an asset falling in value. This is done by borrowing an asset (for
example shares in company ABC Ltd) which an investor believes is going to fall in
value over a particular period of time:
l Investor borrows X number of shares of ABC Ltd
l Investor then sells the borrowed shares at the current market price
l In the event the shares fall in value, the investor physically buys the same number
of shares in the open market to return to the borrower at the agreed date
Long & Short
positions
l The investor’s profit is based on the difference between the market price when the
borrowed shares are sold and the market price when shares are bought to return
to the lender of the shares
In this example, the investor has made money from the shares falling in value by
‘shorting or short selling’ the asset. Short selling can be done using a wide array
of assets such as equities, bonds, commodities and currencies. Of course, in this
example, if the value of the shares should rise the investor will lose money.
Long investing is the exact opposite of short selling. This refers to buying an asset or
security that an investor believes is going to rise in value in the future. A long–term
investor in the shares of ABC Ltd buys shares with a view to making a profit from
those shares rising in value over time. If the price of the shares fall, then the investor
will lose money.
7

Next Steps
To find out more about the BNY Mellon Absolute Return Bond Fund:
M
Talk to your Financial Broker or Advisor
1890 405 905 †
fundcentre.newireland.ie
†
To improve our service to you calls may be recorded.
Terms and conditions apply. Where relevant life assurance tax applies. A Government levy (currently 1% of the premium) is payable on
all premiums paid to a life assurance policy.
While great care has been taken in its preparation, this document is of a general nature and should not be relied on in relation to
specific issues without appropriate financial, insurance, investment or other professional advice. The content of this document is for
information purposes only and does not constitute an offer or recommendation to buy or sell any investment or to subscribe to any
investment management or advisory service. While the information has been taken from sources we believe to be reliable, we do not
guarantee their accuracy or completeness and any such information may be incomplete or condensed. All opinions and estimates
constitute best judgement at the time of publication and are subject to change without notice. Please note that mention of specific
stocks/shares or investments is not a recommendation to trade in those stocks/shares or investments. In the event of any changes in
taxation or legislation, New Ireland may amend the terms and conditions of the relevant contract to take account of any such changes.
The details shown above relating to this fund and its composition are as at the date of this document unless otherwise stated and may
change over time. If there is any conflict between this document and the policy conditions, the policy conditions will apply.
The BNY Mellon Absolute Return Bond Fund is a sub-fund of BNY Mellon Global Funds, plc (BNY MGF) an openended umbrella type investment company with
variable capital (ICVC) and segregated liability between sub-funds, incorporated with limited liability under the laws of Ireland. It qualifies and is authorised in Ireland
by the Central Bank of Ireland as an undertaking for collective investment in transferable securities pursuant to the European Communities (Undertakings for
Collective Investment in Transferable Securities) Regulations, 2011 (S.I. No 352 of 2011). The Manager of BNY MGF is BNY Mellon Global Management Limited (BNY
MGM). BNY Mellon Global Management Limited, 33 Sir John Rogerson’s Quay, Dublin 2, Ireland. The Manager is approved as a management company and regulated
by the Central Bank of Ireland under the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations, 2011 (SI No 352
of 2011). The global (ex US) distributor of BNY Mellon Global Funds, plc is BNY Mellon Asset Management International Limited (BNYMAMI). BNY Mellon Asset
Management International Limited, BNY Mellon Centre, 160 Queen Victoria Street, London EC4V 4LA. Registered in England No. 1118580. Authorised and regulated
by the Financial Services Authority. BNYMAMI, BNY MGM, Insight and any other BNY Mellon entity mentioned are all ultimately owned by The Bank of New York
Mellon Corporation.
New Ireland Assurance Company plc is regulated by the Central Bank of Ireland. A member of Bank of Ireland Group.
8

New Ireland Assurance Company plc.
11-12 Dawson Street, Dublin 2
T: 01 617 2000 F: 01 617 2075
E: info@newireland.ie W: www.newireland.ie
March 2014
302256 V4.03.14