Changes to the EMPOWER, MAPS and Active Managed Funds

EMPOWER Growth and EMPOWER High Growth Funds

Following a Strategic Asset Allocation review the EMPOWER Growth Fund and the EMPOWER High Growth Fund are reducing their allocation to the Dynamic Share to Cash strategy by 10% and commensurately increasing their allocation to Sustainable Equities.  

In addition, the EMPOWER High Growth Fund may take a small allocation of approximately 3% in thematic equities. This allocation is aiming to capture long term growth from companies and sectors that could deliver higher than normal growth by devising new products and services.

There are no changes proposed for the other EMPOWER multi asset funds namely the EMPOWER Stability Fund, the EMPOWER Flexible ARF Fund or the EMPOWER Cautious Growth Fund.

Rationale for Changes:

    • Regular contributions and life-styling in DC schemes supports a small reduction in the level of downside protection required.
    • Improved participation in long term equity market returns for DC savers
    • Will result in improved performance in V-shaped market events
    • Continuation of Irish Life’s ESG journey

Proposed Changes ensure that:

    • Funds still provides some downside protection
    • Prevailing macroeconomic environment taken into account
    • There is no material impact on expected risk/return trade-off
    • Funds stays within their Irish Life risk bands
    • No change to fees

MAPS 4 and MAPS 5 Funds for Irish Life Defined Contribution Clients

Going forward Irish Life will offer different versions of the MAPS 4(Multi Asset Portfolio 4) and MAPS 5 funds with different asset allocations depending on whether the client is member of a Defined Contribution (DC) scheme with Irish Life Corporate Business or whether they are an individual retail policyholder. The rationale for offering a different version of the MAPS 4 and MAPS 5 funds to DC savers and individual retail policyholders is that DC savers have regular contributions, typically have longer time horizons for their savings and also the presence of life-styling strategies within DC schemes.

Following a Strategic Asset Allocation review the MAPS 4 and MAPS 5 funds are reducing their allocation to Dynamic Share to Cash by 10% and commensurately increasing their allocation to Sustainable Equities.

The changes outlined above will not apply to the funds of individual retail policyholders.  There will be no changes in fees for DC customers.

In addition, the MAPS 5 fund may take a small allocation of approximately 3% in thematic equities.  This allocation is aiming to capture long term growth from companies and sectors that could deliver higher than normal growth by devising new products and services.

There are no changes proposed for the other MAP funds namely the MAP6, MAP3 and MAP2 funds.

Rationale for Changes:

    • Regular contributions and life-styling in DC schemes supports a small reduction in the level of downside protection required.
    • Improved participation in long term equity market returns for DC savers
    • Will result in improved performance in V-shaped market events
    • Continuation of Irish Life’s ESG journey

Proposed Changes ensure that:

    • Funds still provides some downside protection
    • Prevailing macroeconomic environment taken into account
    • There is no material impact on expected risk/return trade-off
    • Funds stays within their Irish Life risk bands
    • No change to fees

Changes to the Names of the MAPS Funds for Irish Life Corporate Business Clients

The names of all the MAPS funds offered by Irish Life Corporate Business will in future be preceded by the word “Corporate”. For example, a fund that was called “MAPS 4” in the past will now be called “Corporate MAPS 4”. The names of the MAPS funds offered by Irish Life Retail will remain unchanged.

Changes to the Active Managed Fund (Gross version)

The Irish Life Active Managed Fund (Gross version) is changing some components its equity exposure to include more Article 8 equity investments. The overall equity exposure of the fund will remain unchanged. As a result of these changes the Active Managed Fund will be classified as Article 8 from now on. At the same time this fund is also introducing more diversification within its Emerging Market Debt holdings.

Please refer to the individual fund factsheets for further detail on the above changes.