New Ireland launches new pension fund for cautious investors

Average market pension funds performance up 9.6% this year*

New Ireland Assurance today, 3 October 2010, announced the launch of its new pension product, the Protected Assets Fund, which offers risk averse customers the opportunity to invest in stock markets, while simultaneously allowing them the benefit of protection from volatile market conditions. The Fund, the first of its kind in the Irish marketplace, is in response to customer demand for the provision of safer pension options given the prevailing financial environment.

The innovative product offers customers looking to invest for their retirement the benefit of access to the growth potential of stock markets each year, whilst providing 90% protection on the amount a customer invests in the Protected Assets Fund year on year. While pension funds performance in the market has improved on average by 9.6% this year*, the poor performance experienced over the preceding two years has continued to negatively influence the public’s attitude towards pensions.

The Protected Assets Fund offers investors the unique opportunity to reset the entire investment annually, providing them with the opportunity to benefit from market recoveries year on year. This differs from existing protected funds in the market which require moving to cash investments following large falls in the market to protect funds. This may result in clients suffering the impact of market falls but also missing out on market recoveries.

Commenting on the launch, James Skehan, Head of Pensions, New Ireland said: “Customers with pensions are very aware of the ups and downs associated with stock market performance. The Fund, unique to the Irish marketplace, is designed to counteract some of the downside risks and allay fears associated with this type of investing. The demand for greater transparency and more secure and risk managed pension options, has resulted in the requirement for pension providers to think beyond the traditional parameters of investing.

“New Ireland has developed an innovative range of funds for investors that focus on managing the downside risk of investing, managing exposure to market volatility, and providing varying levels of secure fund options to customers. The company’s recent fund launches of the BNY Mellon Global Real Return Fund, the Elements Fund, and now the Protected Assets Fund, has resulted in a compelling range of pension funds that aim to generate attractive positive returns in volatile economic and market conditions. These funds are ideally positioned for the cautious pension investor who is looking for a more stable investment journey to retirement.

“It is also important to note that not only is a pension a long-term investment but investors can also benefit from the tax relief on the investment, tax-free growth on savings, and a tax-free portion of the fund at retirement. This is the only long-term savings plan that offers these attractive benefits”, James Skehan concluded.

* Source: Mercer. Based on performance of the average Irish Pension Managed Fund for the year ending 31 August 2010.


Notes to Editors:

  • The Protected Assets Fund is an ideal solution whether looking for a single investment fund or for a fund to act as part of an overall portfolio. The Fund can act as the core part of any pension or investment portfolio, to which other funds from New Ireland’s wide range can be added to build the most suitable investment portfolio.
  • In any calendar year, the value of an investment in the Protected Assets Fund (before charges are deducted) will never fall below 90% of its highest value in that year.

For further information contact:

Anne Mathews
Media Relations Manager
Bank of Ireland
Ph. 076 623 4771
Mob. 087 246 0358

Laura Erskine
Public Relations Manager
New Ireland Assurance
Ph. 01 617 2586
Mob. 086 856 2929

Terms and conditions apply. This article is of a general nature and should not be relied upon in relation to a specific issue without taking appropriate financial, investment or other professional advice. This article is for information purposes only and does not constitute a recommendation to invest in a particular product. If there is any conflict between this article and the policy conditions, the policy conditions will prevail.

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

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