Diversification into new asset classes a must for pension investors
Friends First Insight Currency Fund celebrates performance of over 119%* since launch in 2001.
Private pension investors in Ireland must have new products and new asset classes available to them to help them adequately provide for their retirement, Eunan O’Carroll, Sales and Marketing Director at Friends First, told delegates attending a seminar celebrating the successful performance of the Insight Currency Fund in Dublin today. Launched in March 2001, the fund has delivered 119.48%* growth in ten years.
Commenting on the proposed reduction in tax relief on private pensions and the new Government’s proposed levy on retirement funds, he added: “Pensions are not the preserve of the rich and famous, over 750,000 people contribute to a private pension in this country, but uncertainty around tax relief and the current economic climate are forcing private pension investors to reduce or cease their pension contributions, which will create significant exposure for the State when this generation of workers retire with little or no pension savings,” added Mr O’Carroll.
Speaking at the event, Brian McCarthy, Director, Alder Capital said: “The future is a very uncertain place and investors need to build an investment strategy that can deal with this uncertainty. The way to do that is to put together asset classes that don’t have their good and bad times at the same time as each other. Most investment strategies are linked to equity market growth, however the Friends First Insight Currency Fund has historically made money during equity market downturns. This makes it a great fund to include in investor’s portfolios.”
Currency funds are usually the preserve of institutional or high net worth investors, the Friends First Insight Currency Fund was the first Currency Fund available in Ireland to the retail investor. The fund has a similar risk profile to equity investment and when combined with equities may lower overall portfolio risk. The fund is available across the range of Friends First Pension & Investment products and is also a component of the Magnet Range of readymade investment portfolios.
“During the fourth quarter of 2010, Euro weakness returned as the main market theme with the debt problems here in Ireland taking centre stage. Fears grew that the Euro debt problems will extend beyond Ireland and Greece into Portugal, Spain, Italy and maybe even to other eurozone countries. This caused a weakening of the Euro currency and the Insight Currency Fund captured some of this move by buying currencies like the Australian dollar which strengthened against the Euro,” said Mr McCarthy.
