ethical equity fund - New Ireland Assurance

HIGHLIGHTED FUND FOR QUARTER 2 -
PROTECTED ASSETS
With over €65m invested in just over 6 months, our period has already increased as early growth in the fund
Protected Many Spotlight investors Assets offers remain investors Fund quite is one access cautious of the to in fastest SSgA their approach
Ireland’s growing has seen • Reduce the protection exposure level to rise stock 95.3% markets (as of during June
funds to leading investing portfolio the and Irish are of market. stock demanding ideas Uncertainty greater and reflects downside in the the global
stock risk 6 th )*. The result times of this uncertainty early growth - to limit is that exposure between from now
economic
protection, picking skills recovery
whilst of a is
at select clearly
the same team coming
time of through analysts.
seeking
in stock
As
the
a and the year any end market the most falls. the fund can fall (from its price
opportunity that long term stock market investment
market
can concentrated
potentially
volatility fund over
offer. – the it
In typically past
response,
few holds months
there between with
are
investors
15
many
and on June 6th) is no longer 10% but in fact just 4.7%.
remaining investment 40 stocks very – it offerings is cautious a pure available and in their honed approach today expression that to investing, typically
of SSgA 2. Explicit downside protection
demanding provide Ireland’s some value greater form philosophy downside of downside of risk investing protection. risk protection. in high quality To The The result Protected of all of Assets these Fund key points includes is that another Protected layer of
provide the protection many of these move a large
protection for clients. By using a protection policy, the
businesses which SSgA Ireland believe trade cheap to Assets Fund provides your clients with:
portion of clients' money into safe assets such as cash
Fund provides an explicit promise that in any calendar
Protected their fair value. Assets Fund is a unique offering, unlike any
when markets fall. What happens next is that clients
year, the value of an investment in the Fund (before
other protected fund in the Irish market today. We have • A passive investment approach
then find that due to the high proportion of their fund
charges are deducted) can never fall below 90% of its
all The learned fund from is not the constrained past that funds by offering its benchmark protection (the in
invested in cash, they are precluded from any
highest
• Benefit
value
of
in that
dividends
calendar
by linking
year**.
to
This
total
provides
return
subsequent MSCI World
upturn Index)
or and
recovery simply selects in the markets.
the most explicit
indices
a volatile market typically have to move a large amount
protection for times of severe market disruption.
• A dynamic investment strategy, with explicit
of We compelling clients’ Bank money stock of Ireland into ideas safe Life regardless assets have such spent of as geography a cash lot of with timeor
a
downside protection
large looking industry. number at For what example, of these we believe in funds contrast to becoming to the its weaknesses benchmark, ‘cash locked’.
the in Participate
• No risk
in
of
any
being
market
cash locked
recovery
and precluded
- many of
from
the
This the fund protected effectively currently funds holds meant space. no that utility We clients stocks. are confident had In a little similar that or vein, our no existing protected solutions available today run the risk
any market recovery after a period of decline
new Protected Assets Fund provides a solution to of clients missing out on market recoveries due to the
prospect the fund’s of exposure getting back to Hong into equities Kong-listed subsequently stocks is
clients that is truly the first of its kind in the Irish bulk
•
of
No
clients'
cap on
money
upside
actually
growth
being in cash in order to
becoming
market.
driven by precluded the cheap from quality any stocks upturn we or find recovery there and in protect • Return values in linked a falling to market. the performance This simply can of not 5
markets.
not by its weight in the benchmark – incidentally happen mainstream the Protected global stock-market Assets Fund. indices. The Fund has
The Spotlight’s
Protected recent
Assets exposure
Fund
to Hong Kong stocks was been designed so that exposure to equities can rise
The
There almost Protected
are double Assets
a number its exposure Fund is
of key to linked
questions Swiss to stocks. the performance The
that I believe we
quickly Protected once Assets markets Fund stabilise. is available across the New
of must five ask mainstream when considering global stock any market protected indices, investment namely Ireland product platform and suitable for both single and
Eurostoxx fund The fund for clients. 50 manager (50%), Questions achieves S&P 500 such this (25%), portfolio as - FTSE what positioning is 100 potential (10%),
by regular Unlimited premium growth products. potential The - there fund are is daily no limits priced or with any
Nikkei growth working 225 dependant closely (10%) with and on, the MSCI how research is Emerging the team downside in Markets distilling protection (5%).
a list no restrictions minimum on lock the in upside period, growth and offers potential a unique for clients solution of
The provided, of thoroughly percentage are there researched exposure any limits indicated investment on the upside was ideas at growth time into of
a to the act Protected as the foundation Assets Fund. or core part of any pension or
the investment, to mention just a few. The Protected
launch portfolio and of high this conviction can vary. stocks The offering fund aims an attractive to take investment portfolio. Full details of the Protected Assets
Assets Fund has taken many of these issues into
advantage The Protected Assets fund is an ideal solution, whether
consideration, risk-reward of profile. both addresses the The growth fund
these and manager
weaknesses income therefore opportunities and draws Fund are available from your Broker Consultant or in aims looking for a single investment or for a fund to act as
offered to firstly deliver on from the to these depth clients indices and long breadth which term are of capital experience total growth return of indices while
SSgA fund brochure available on www.newireland.ie
part of an overall portfolio. This truly unique new fund
or explicitly Ireland’s equivalent managing research and therefore team market and risk: include uses his the experience, benefit of can act as the foundation or core part of any pension or
dividends. analysis and As the judgement fund is in based constructing passive a portfolio equity
For the Protected Assets Fund, the Governor and
investment portfolio.
investment, Growth which aims - it growth to does outperform not potential involve the manager market. for clients risk. in the Fund
Company
* The indices
of the
and
Bank
relative
of Ireland
exposure
is the
to
current
each
provider
index can
of
comes from exposure to five mainstream global stock the be protection varied at any and time. the return to New Ireland. New Ireland
Managing market Because indices*, of market its namely high-conviction risk: Eurostoxx The Protected nature 50 (50%), Assets the S&P fund Fund 500
is will ** pass For the on Protected the full value Assets of the Fund, amounts the it Governor receives from and
uses (25%), suitable a dynamic FTSE to 100 investors risk (10%), management who Nikkei have 225 strategy, (10%) an appropriate and which MSCI is Bank Company of Ireland of the to Bank investors. of Ireland If for is any the current reason provider Bank of
Emerging Markets (5%). The Fund aims to take of the protection to Bank of Ireland Life. Bank of Ireland
based investment on a very horizon simple and concept;
are willing to accept the higher Ireland cannot meet its obligations, investors could lose
advantage of both the growth and income Life will pass on the full value of the amounts it receives
opportunities level of risk that offered is associated from with exposure this type to of company
strategy. some
from
or
Bank
all of
of
their
Ireland
investment
to investors.
in the
If
fund.
for any
The
reason
protection
Bank
in
shares As • a Increase concentrated by including exposure the fund benefits to stock may from be markets dividends. suited during
to The
a the of fund Ireland is before cannot charges meet are its deducted. obligations, investors could
importance core-satellite times of approach of stability dividends to where gain from should investors potential never allocate positive be
a lose some or all of their investment in this Fund.
underestimated. market performance
portion of their assets Dividend to an active payments higher risk can strategy be a * Performance is quoted gross of tax and fund management charges.
significant • Reduce
while
contributor exposure to investors' stock markets long term during returns. times
retaining the bulk of of their assets in a more
of uncertainty to limit exposure from any market
moderate strategy.
Managing moderate fallsrisk market strategy. risk - a two pronged approach
1. The Dynamic success investment of this approach management is evident strategy in - the
With the
first The level
the success fund
of risk
now of management this up and approach running
within is the
since evident Fund
September
is similar in the
2010, exceptional performance of the Spotlight fund over the
to exceptional the this concept process performance we can introduced be of clearly the Spotlight seen with to fund our be working over hugely the
effectively successful three years
three years with Secure to the
to the the equity Advantage end of February
end exposure of February series to date of 2011.
2011. investments:
having The fund
The been fund
as outperformed •
outperformed low as 45% Increase and the benchmark
the benchmark as client's high as exposure 90%. by 15.28%
by 15.28%*
to stock en route
en route
markets to a
to a
cumulative during return times of 24.4%* of stock in market the three-year stability period. - to gain
cumulative
from
return
potential
of 24.4%*
positive
in the
market
three-year
performance.
period.
Explicit downside protection: The Protected Assets
Fund * Performance is quoted gross of taxation and net of
Performance includes another is quoted vital gross layer of of taxation protection and for net your of
1.5% p.a. fund management charges. Andy Ivory-Corr,
clients, 1.5% p.a. with fund an explicit management promise charges. that before charges, the
Head of Investment Sales
fund cannot fall below 90% of its highest value in any
calendar year. In practice the protection level for this
5