How does the plan work?

Pension Investments - Key Concepts & Terms

Equities – company shares

Property – buildings i.e. office, retail, industrial units

Bonds – Governments bonds/fixed interests. Name for loans given to governments

Cash – money on deposit with a variety of banks and for different lengths of time

Managed /Balanced Fund – a fund that invests in: equities, bonds, property and cash

Asset Allocation - the decision re. how much to invest in shares, bonds, property & cash

Stock Selection - the decision as to what shares to buy

Indexed – the fund managers buy shares as per an index i.e. if CRH is 35% of ISEQ then the fund will have 35% invested in CRH

Closeness to Retirement

Safe Deposit Fund Capital / Pension Protection

Imminent Distant

Typical Career Investment Strategy

Consensus Diversified Balanced

Equity FundIndexed Global

>20>20YearsYears

Objective: preservation of capital

Objective:

aggressive growth of c

apital5 5

YearsYears

10-15 10-15 YearsYears

DistantDistant

Cash / Fixed Interest

Managed Fund /

Consensus

Equity

Cash Fund

Active Managed FundConsensus Fund

Fund choices

Indexed 50/50 Equity Fund

Capital Protection Fund

Individual Investment Option Or

Mix of funds

Diversified Balanced Fund

Cash Fund

• Invests 100% in deposit accounts with Banks

• Very secure investment - suitable for employees near retirement

Returns to 01/05/2013

Average fund return since launch is 5.1% p.a.

Launched 01/01/1986Source ILIM

1 year 3 year

-0.3% 0.4%

Objective is to provide members with some benefit of stock market growth with a guarantee of no negative returns

Adopts a cautious approach to investment with 2/3rds in cash and bonds

In addition it offers a guaranteed growth rate. The guaranteed rate for 2013 is 0%

Currently has a Market Value Adjustment of 0% for non demographic exits

Capital Protection Fund

Returns to 01 May 2013 1 Year 3 Year 5 Year 10 Year

% % p.a. % p.a. % p.a.

Capital Protection Fund 8.9% 4.4% 2.9% 2.6%

Asset Allocation 01/05/2013

Consensus Fund

Invested in Equities/Bonds/Property/Cash

Tracks the ‘asset allocation’ of 17 fund managers in Ireland (the split of equities/bonds/cash etc)

Equities – (Index tracking) – only invests in stocks and shares quoted on the various indices e.g. ISEQ/Dow Jones

So not dependant on the view of any one manager

Aims for consistent Top Half Returns

Consensus FundAsset and Country Mix as at 01.05.2013

Consensus Fund

Performance to 1st May 2013

Average fund return since launch is 6.7% p.a.

Source: ILIM

1 yr

p.a.

3 yrs

p.a.

5 yrs

p.a.

15.1% 7.7% 2.6%

Consensus Fund Historical Yearly

ReturnsYear Consensus Year Consensus

1996 15.5% 2005 21.1%

1997 35.1% 2006 13.4%

1998 21.1% 2007 -3.2%

1999 18.6% 2008 -35.1%

2000 2.6% 2009 21.0%

2001 -4.7% 2010 11.0%

2002 -19.0% 2011 -2.9%

2003 11.7% 2012 14.2%

2004 12.5% 2013 YTD 8%

Individual Investment Strategy

• What is a Lifestyle strategy ?

• Strategy aims to reflect the changing investment needs during various stages of your life.

Growth Consolidation ( 5 years )

•

Consensus Fund Capital Protection Fund

Invests in higher risk

funds initially Moves to

lower risk funds

Diversified Balanced Fund

Returns to 1 May 2013 1 Year 3 Year 5 Year

% p.a.% p.a.%

Diversified Balanced Fund 7.5% 2.9% -0.4%

Asset Allocation 01.05.2013

Invested in developed world equities, Eurozone Govt. Bonds, and range Alternative Assets

Objective: Balanced Fund returns with lower volatility levels

Suitable for members with number of years to retirement who wish to pursue a strong growth strategy

Active Managed Fund

• Subject to ups and downs of stock markets

• Volatile recent returns

• Produces good long term returns

•Objective to produce above average managed fund performance

Active Fund Performance to 1st May 2013

Fund returns since launch (1989): 7.3% p.a. Source: ILIM

1 year p.a. 3 years p.a. 5 years p.a.

16.6% 5.7% 1.6%

Indexed 50/50 Equity Fund

• The assets of this fund are fully invested in equities

• 50% is allocated to the Eurozone and 50% to the rest of the world

• Suitable for members with a number of years to retirement and who want an aggressive investment strategy

Returns to 01/05/2013:

Since Launch (Dec 2007): -0.4% p.a.

Source: ILIM

1 yr

p.a.

3 yrs

p.a.

5 yrs

p.a.

18.3% 6.8% 1.9%

Keeping in Touch…….

• Annual Benefit Statements

• PensionPhone service with PIN

• Web access – www.Irishlife.ie/corporatebusiness

• www.pensionplanetinteractive.ie – access to your pension account

• www.pensionprophet.ie – pension calculator

• Smartphone App

• Pension Pulse

Website Access

• Members can view their retirement accounts by accessing - www.pensionplanetinteractive.ie

What information is available ?• Fund Values at any date

• Your Current Fund Choice

• No. of Units and Values in each fund

• All Transactions for previous 24 months

• Monthly Fund Performance Information and flyers

• Your Benefit Statements

• Correspondence

Login screen

www.pensionplanetinteractive.ie

Member overview screen

Contributions received

www.pensionprophet.ie

www.pensionprophet.ie

Smartphone App

Download from iTunes App store or visit www.mypensionapp.ie

Key features

• Your current fund value

• Estimated value of your fund at retirement

• Estimated pension at retirement

• Impact of making AVCs

• Fund factsheets

• Regular market updates.

Irish Life is regulated by the Financial RegulatorIrish Life is regulated by the Financial Regulator

UL AVC Plan

Irish Life

Secured Performance Fund

Closed to future moneyInvestment Objective

To produce managed fund returns on a smoothed basis - Promise of no negative returns.

Investment StrategyA return is declared annually Invested in line with Irish Life’s Consensus FundMarket Value Adjuster (penalty) applies (currently 0%)Entry and exit conditions to ensure fairnessSingle Premiums and Transfer Values are not allowed Return for 2013 is 0.2% (Net of Fund Management Charge)`

Source: ILIM