Bank of Ireland Life’s new Phased Evergreen Fund helps investors smooth their entry into the world of investments

Today, 15th May 2008, Bank of Ireland Life is delighted to announce the launch of its new Phased Evergreen Fund.

The Phased Evergreen Fund offers investors the advantage of spreading their investment over eight months, smoothing the peaks and troughs of their entry into the world of investments. In addition, investors will benefit from a minimum return of 4% on their lumpsum, which is invested in a cash fund during the phased period of investment.

We have experienced a 9-month run of stockmarket volatility, however since St. Patrick’s Day signs of improvement have become apparent. Typically it is these early stages of recovery that investors lose out on by trying to time the market. Right now there is a significant opportunity to capitalise on quality stocks that are priced well below their true value. However for most investors, putting money into the stockmarket at a time when some share prices are still volatile seems illogical, despite that now is probably the best time to invest.

The history of the stockmarket has taught us that markets do recover and over the long-term investments will outperform deposits. Predicting the exact time of recovery is next to impossible as is ensuring that you are buying shares at their lowest price. That’s why phasing your investment into the stockmarket during a down period is the best possible way to spread the risk of investing.

Commenting on the launch, Bernard Walsh, Head of Investments, Bank of Ireland Life said; “Investors who try to choose the optimum time to invest typically end up not investing at all and lose out on the high rewards the stockmarket has to offer. In fact investment guru Warren Buffet bases his outstanding success on the premise that he is fearful when others are greedy and greedy when others are fearful. Our new phased investment service aims to give investors the returns that only a good managed fund can achieve, without the worry of trying to get the timing right in a volatile market.”

Over the last 20 years the average US equity fund achieved returns of 10% per annum, yet the average US fund investor achieved returns of 2% per annum. According to John Bogle, founder of Vanguard Investments, the reason for the poor investor performance is down to two basic decisions poor timing and poor fund selection.

The Bank of Ireland Life Evergreen Fund has a fantastic track record and has outperformed all competitors in its field over 10, 15 and 20 year* investment terms. In fact the Evergreen Fund has never fallen in value over any 5-year period in its 37-year* history. Evergreen is a unique managed fund having a higher property content than other current managed funds in the Irish market. The minimum investment required to participate in the Phased Evergreen Fund is €5,000. Further details are available on request from the Investment Adviser at your local Bank of Ireland branch.

*Source: MoneyMate January 2008

Notes to Editors:

  • On the monthly anniversary of the initial investment Bank of Ireland Life will automatically start to phase our client’s money into the Evergreen Fund.
  • This will continue over the 8 months from the initial investment when our client’s money will then be 100% invested into Evergreen.
  • During the phasing period our client’s money will be invested in the Phased Evergreen Fund, a cash based fund which over the past eight months has yielded on average a return of 4.6% p.a.
  • Special opening offer: 4% p.a. minimum return on the cash fund. Minimum return on Phased Evergreen Fund is gross of charges and tax. No fund charge on cash fund balance.
  • Clients have the option to move the entire amount from the Phased Evergreen Fund into Evergreen or indeed any other fund in the SmartFunds range at any point during the phased or subsequent investment term.
  • The standard SmartFunds annual management fee of 1.5% applies to the proportion invested in the Evergreen Fund.
  • It is possible to top-up into the fund in the first 8 months of the policy but the top-up will be switched at the same frequency as the initial investment.

For further information contact:

Laura Erskine
Public Relations Manager
Bank of Ireland Life
Ph. 01 617 2586
Mob. 086 856 2929

New Ireland Assurance Company plc trading as Bank of Ireland Life is regulated by the Financial Regulator and is a member of the Bank of Ireland Group.