Presentation to: University of Limerick AVC Plan

Stephen O’Hanlon QFA MIIPMApril 2009

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Agenda

Communication

Investment Funds

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Member Communication

• Annual Benefit Statement– Scheme renewal date is 1st April

• Pension Phone– Dial 1850 258 258

• www.pensionplanet.ie – Register online

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Investment funds

www.Irishlife.ie/corporatebusiness

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How does the plan work?

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Performance of funds

• Low risk funds – Low risk, low return– Offer security

• Medium & High risk funds– Large equity content in fund– More volatile, but offer better long term returns

• Important Questions:- What is your attitude to risk?- When will you need to access this money?

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Investment Funds

Consensus FundActive Managed Fund

Capital Protection Fund

Strategies:IIS ConsensusIIS Active

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Consensus Fund

• Very popular fund

• Taps into “collective wisdom” of industry

• Invests in line with market (index tracking)

• Aims for consistent Top Half Returns

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Consensus Fund Historical Yearly Returns

Year Consensus Year Consensus

1996 15.5% 2003 11.7%

1997 35.1% 2004 12.5%

1998 21.1% 2005 21.1%

1999 18.6% 2006 13.4%

2000 2.6% 2007 -3.2%

2001 -4.7% 2008 -35.1%

2002 -19.0% 2009 ?

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Consensus Fund

Consensus Fund Performance to 1st April 2009

Fund returns since launch 4.51% p.a.

Source: ILIM

1 year p.a.

3 years p.a.

5 years p.a.

-30.7% -13.8% -2.5%

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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

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Active Managed Fund

Performance to 1st April 2009

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

Active Managed -33.6% -15% -3.2%

Fund returns since launch (01/01/1989): 6.1% p.a.

Source: ILIM

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IIS – Active or Consensus

5 years before retirement

100% in Consensus Fund

Or

100% in Active Fund

4 years before retirement

80% in Consensus or Active Fund

20% in Capital Protection Fund

At retirement

100% in Capital Protection Fund

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Source: ILIM

Cautiously managed fund

2 promises:

- No negative returns;

- Minimum Return each calendar year - 0.25% for 2009

Assets: Cash, Fixed Interest, Equities (c.1/3 each).

Performance 1 Year: 0.7%

3 years: 1.3% p.a.

5 years: 2.4% p.a.

Since launch (1989): 5.95% p.a.

Capital Protection Fund

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In Summary

Consensus FundActive Managed Fund

Capital Protection Fund

Strategies:IIS ConsensusIIS Active

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Secured Performance Fund(Closed to New Entrants)

RulesNo new entrants/transfers into this fund wef 01/03/09Existing members can continue to pay into this fund,

but cannot increase their % contributions (increased premiums as a result of salary increases are allowed)

MVA applies to transfers out of fund currently, except where:

- Member is retiring- Member is leaving service

Return for 2009 is 0.0%Source: ILIM

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• 6 times per year for free

• You can choose to mix and match funds

• You can pay future contributions to a different fund

• Watch out for Market Value Adjustment on funds

Think carefully before switching!

Switching Funds

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Could current markets be good for your pension in the long term?

Date ContributionConsensus Offer Price

Units Purchased

August 2007 €500 €3.912 128

April 2008 €500 €3.293 151

November 2008 €500 €2.626 190

February 2009 €500 €2.347 213

Remember!

The value of your fund = Number of units x Unit Price

In Aug 2007, €500 bought 128 Units. In February ‘09, €500 bought 213

units. That’s over 60% more!

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Next Step- Take Action Today

• Check your fund choice– Is it suitable for you?– Are you in a strategy?

• Check your contribution level– What are you targeting?– Are you paying enough to meet your target?

• Sign up for Pension Planet

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Finally…

Note: All benefits are subject to maximum revenue limits

Warning: The value of your investment may go downas well as up. Past performance is not be a reliable guide to future performance. These figures are estimates only. They are not a reliable guide to the future of your investment

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

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Questions

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