Exempt Consensus Fund

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cord

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From my earlier posts you will know that I have an AVC with Irish Life through Marsh. The investments are split between Secure Performance Fund and Exempt Consensus Fund. My question... in the EC Fund is the the Principal/Fund at risk of being depleted if things go pear shape?
Thanks
 
Yes. It's disappearing as we speak. This fund mirrors the investment decisions of leading finance houses. So when things are generally good, it goes well and vice-versa.

[broken link removed]
 
It should be noted that all equity-based funds, including the Consensus Fund will go down as well as up from time to time. This warning appears on every piece of sales literature you'll see. When they go down, as they are now, this does not mean that the fund is a bad one. It's the nature of the beast. And yet you'll still find people who seem surprised or even critical that the fund has gone down, as if they thought it could only rise.
 
According to their (IL) "blurb"....a guaranteed rate of return is announced for the comming year. I believe 4.9% for 2009, thanks to Oysterman for the link. I do remember reading that had a zero return in 2003, I think. However, I always thought that a return would mean something more than zero?
 
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SECURE PERFORMANCE FUND - ensures you have NO NEGATIVE RETURN ONLY. Secure performance fund shelters from a very volatile market.
The returns on secure performance fund are as follows:
Year - Declared return - underlying consensus return - Difference
1996 - 7.5%----------------15.2%---------------------(+)7.7%
1997 - 8.9%----------------34.7%---------------------(+)25.8%
1998 - 13.0% --------------20.9% -------------------- (+)7.9%
1999 - 13.4% --------------18.3% -------------------- (+)4.9%
2000 - 13.3% --------------2.4%-----------------------(-)10.9%
2001 - 11.1%--------minus(-)5.0%----------------------(-)16.1%
2002 - 4.6% ------------- (-)19.3%---------------------(-)23.9%
2003 - 0.0%-----------------11.7%---------------------(+)11.7%
2004 - 1.7%-----------------12.2%---------------------(+)10.5%
2005 - 3.2%-----------------21.1%---------------------(+)17.9%
2006 - 6.0%-----------------Dont have the Data
2007 - 7.3%-----------------Dont have the Data
2008 - 4.9%-----------------Dont have the Data

So the returns are positive even in a terrible market like 2001,2002 & now in 2007, 2008. However offset is 0% return for 2003 and possibly for 2009!!! You also lose out on the terrific postive years like 97,98,05 etc.
Since 1999 launch (of both funds)- secure performance fund - average return 7.28% todate WHILE the CONSENSUS FUND is 7.34%

This is equal return to most other funds started in this time period.
Better than some of the negative return funds my friends have invested in this period.

If you want to switch out of SECURE performance fund into a more riskier fund (now that the markets have crashed) you will lose out additional 15% of the daily value of the fund as of sept 2008. Therefore the advantage of this fund is that your fund value NEVER GOES NEGATIVE FROM today's value.........either it goes up OR REMAINS the SAME as in 2003 and possibly in 2009.

for comparison check
http://www.irishlife.ie/corporatebusiness/pdf/Fund-Performance-Update.pdf

Hope this helps.
 
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