Common currency: Rehabilitate your pension
MOST private sector workers who have pensions are engaged in "pensions rehabilitation" in a bid to recover from massive losses over the past three years, Friends First has said.
Those with personal and executive pensions are trying to rescue their pensions by looking at alternatives to managed funds.
To revitalise their retirement funds, private pension investors need a greater variety of pension product and new asset classes made available to them to ensure they have adequate provision for their retirement, Friends First sales and marketing manager Eunan O'Carroll said at a seminar yesterday.
One alternative to poorly performing managed funds, which are largely made up of equities, is currency funds.
Usually the preserve of high-net worth investors, currency funds can make returns even when markets are falling, Mr O'Carroll said. Friends First has made the Insight Currency Fund it markets available to smaller investors, with a minimum investment amount of €12,000 for investors, and €5,000 for personal and executive funds.
The fund, which has returned an annualised 10pc a year in the last six years, can also be invested in through regular repayments from €250 a month.
Mr O'Carroll said a fund that makes positive returns when markets are down is one way to rescue a damaged pension fund.
"More than 750,000 people are involved in funding private pensions at the moment. But most of those are now in pensions rehabilitation business," he said.
The Insight Fund is managed by Dublin-based Alder Capital. It invests in eight of the world's most liquid currencies including the US dollar, euro, the Australian dollar, the Swedish Krona and others.
The fund has a similar risk profile to equity investment and when combined with equities may lower overall portfolio risk, Brian McCarthy of Alder Capital said.