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.