Switch PRSA Fund

[desk]

I have PRSA with Irish Life, Consensus Series N, which has lost 26% of its value in the last 6 months. It still has 30 years to mature but I wonder should I consider switching it to a Pension Protected Fund?

 

[Dave Vanian]

If the Consensus fund was appropriate for you when you started, it should still be unless your circumstances have changed. Fund values can will go up and down. You've already taken a drop in value - nobody can predict when the recovery may be. By switching out, you might miss the recovery. Time in the markets is far more important than futile attempts to time the markets.

Also - your current contributions are buying units in the Consensus fund at a lower price than last year.

 

[desk]

Thanks for your reply. That does make sense. I am chiefly worried about the level of exposure to Irish banks that the fund may have and if any of our banks were to be nationalised

 

[Dave Vanian]

See fund fact-sheet here. Exposure to Irish equities is now around 13% of overall fund and I'd imagine not all of that 13% is bank shares, so exposure to bank shares is likely to be less than 13% of overall fund.