Personal Business Sponsorship Menu Log in Search Consensus Fund Changes Change in the Investment Environment The universe of traditional managed funds has reduced substantially over the last few years. A strategy reflecting the collective views of the average balanced fund manager is therefore less insulated from the calls of individual active managers than previously. As a consequence of this, State Street Global Advisors (SSgA), manager of our Consensus Fund , has concluded that the historic benchmark is no longer the optimal solution. Change in the Investment Strategy In response to the changed investment environment SSgA has switched emphasis to follow a fixed asset allocation based on analysis of the historic allocation of the benchmark over the last 26 years. SSgA has decided to set an initial asset mix as shown below, with a broad exposure to equity, fixed income and alternative investments and rebalancing back to these percentages each month. The historic balanced approach is preserved. Equities SSgA also took the opportunity to move to a global equity index, reducing the bias to Irish and Eurozone Equities which was a feature of the previous benchmark. While this provides some safety against currency risk it may result in missed opportunities worldwide. For this reason, the Equity component of the fund has been switched to a broader, global basis, tracking the SSgA All World Equity Index but with 75% of the currency risk is hedged into Euro. Bonds The strategy will track the Citigroup EMU Government Bond (5+ years) index in respect of the bond component. Alternatives (+ Property) The purpose of this component is to seek to generate returns of cash plus 2.5% p.a. over the medium to long term through investing in alternative assets such as Emerging Market Bonds, Corporate Bonds and Property through Real Estate Investment Trusts and Infrastructure. Thus, while Property exposure is retained, SSgA has a greater degree of liquidity than previously. Performance Impact of the New Fund Strategy Performance to 30th June 2015# Old Strategy New Strategy 3 months -4.01% -2.58% Year to Date 10.38% 8.28% 1 Year 19.29% 16.08% 3 Years* 16.81% 15.47% 5 Years* 12.91% 12.54% 10 Years* 6.39% 7.48% Since August 2000* 4.73% 4.67% *performance per annum Source SSgA 10th September 2015 Based on backtested numbers to August 2000. #Warning: These figures are estimates only. They are not a guide to the future performance of this investment. Asset Changes The asset changes result in the following splits: Asset Split, Consensus Old Strategy 31st May 2015 New Strategy 31st August 2015 Equities 78.01% 68.94% Bonds 15.20% 16.12% Alternatives 2.70% 9.97% Cash 4.09% 4.97% Source SSgA The fund continues to apportion a split of 80% Growth Focussed Assets and 20% Matching Characteristics (Bond and Cash based) assets. Risk Profile Annualised volatility over the period is shown to have reduced from approx. 10.58% p.a. to approx. 9.71% p.a.** Volatility will change over time and will vary depending on the period selected. The Consensus fund has been aligned with the European Securities and Markets Authority (ESMA) Risk ratings scale. It retains a risk rating of 5 on a risk rating scale from 1 to 7. It could be described as a medium to high risk fund. There is no change to the fund management charge. **Source SSgA In Summary The historic balanced approach with a broad exposure to equities, fixed income and alternative investment is preserved.The strategy retains a long term split of 80% Growth Focused Assets and 20% Matching Characteristics (Bond and Cash based) assets. The fund now has the ability to invest in a wider variety of alternative assets and infrastructure and can invest in property in a more accessible way than previously. The new strategy provides broader access to a wider variety of asset classes. Equities move away from an Irish/Eurozone bias to a Global perspective but with reduced currency risk. The reliance on asset allocations set by a decreasing number of balanced fund managers is removed. The fund risk rating remains at “5” on the ESMA risk scale. There is no change in the fund management fees. Risk ratings can change over time. The investment objective accordingly changes from reflecting the collective views of the average balanced fund manager to one of seeking to generate capital growth over the long term. Warning: The value of your investment may go down as well as up. Warning: This product may be affected by changes in currency exchange rates. Warning: If you invest in this product you may lose some or all of the money you invest. The funds referred to on this page may be linked to an insurance-based investment product and the Key Information Document (KID) for this product are available on our website. The Risk Ratings of the funds referred to in this document differ from the corresponding Summary Risk Indicators shown in the KID. An explanation of the differences between the Risk Rating and the Summary Risk Indicator is available at the location above. Aviva Life & Pensions Ireland Designated Activity Company, a private company limited by shares. Registered in Ireland No. 165970. Registered office at Building 12, Cherrywood Business Park, Loughlinstown, Co. Dublin, D18 W2P5. Aviva Life & Pensions Ireland Designated Activity Company, trading as Aviva Life & Pensions Ireland and Friends First, is regulated by the Central Bank of Ireland. Tel (01) 898 7950. Search MyAviva or Claims Insurance Car Car Insurance Get Car Quote Renew Car Insurance Retrieve Car Quote Multi Car Discount About Ignition Home Home Insurance Get Home Quote Renew Home insurance Retrieve Home Quote Contents Insurance Renters Insurance Life Life Insurance Mortgage Protection Mortgage Protection Quote Income Protection Specified Illness Cover More Travel Insurance Health Insurance Business Insurance The Aviva Blog Fraud Information Aviva Careers Car Online Discount Get 15% off your car insurance online Find out more View all insurance products Protection Mortgage Protection About Mortgage Protection Mortgage Protection Quote Income Protection About Income Protection Life Insurance About Life Insurance Specified Illness Cover Existing Customers Existing Customers Group Member Benefits Claims Mortgage Protection from €10 per month Terms and conditions apply Find out more View all protection products Investments Savings and Investments I'm saving monthly for my future I have a lump sum to invest I am a corporate investor Investment Options Investments that work for you Responsible Investments Existing Customers Existing Customers Fund Resources Power Talks Fund Centre Investment Suitability Tool Get Advice Get independent advice on your investment or retirement needs. Contact your Financial Broker today. Find a broker View all investments products Pensions Pensions Aviva Pensions Personal Pensions Executive Pensions Retirement Bond Investments that work for you Retirement ARF/AMRF Annuities Existing Customers Existing Customers Fund Resources Power Talks Fund Centre Get Advice Get independent advice on your investment or retirement needs. Contact your Financial Broker today. Find a broker View all pensions products Driving School Get started Learner Driver Accompanied Driver Cover Driving School Locations Learn more Terms and Conditions Frequently Asked Questions Driving School Offer 6 months free accompanied driver cover. Terms and conditions apply. Find out more Get support Contact Us Contact us Contact Aviva Media Enquiries Careers Feedback About us About Aviva Sponsorship Latest News Fraud Information Product provision Solicitors' Forms Customer Data Charter Products Car Insurance Home Insurance Life Insurance Mortgage Protection Driving School Investments Pensions Other Links Aviva Corporate MyAviva Car Policy Aviva Online Service Centre Quick Car Policy Renewal Quick Home Policy Renewal Aviva's Ireland Facebook page Aviva's Ireland Twitter page Aviva's Ireland YouTube page Aviva's Ireland Instagram page About our website Privacy Policy Terms and conditions Sitemap AvivaBroker.ie Cookie Policy Manage cookies © 2021 Aviva Cookies At Aviva we use cookies to ensure that our website works properly. We can also use cookies to improve and personalise your experience, understand how you use our website and for our advertising purposes. You can agree to all cookies by clicking on ‘Accept All Cookies’ or choose which cookies you want to agree to by clicking on ‘Manage Cookie Settings’. You can change these settings at any time. For more information about the cookies on our website and how we use them please see ourCookie Policy Manage Cookie Settings Accept All Cookies