Asset class | Target allocation | Permitted range | Allocation 31.12.2018 | Allocation 31.12.2018 |
% | % | % | € | |
Global Equity | 20 | 15 – 25 | 20 | 119.197.316 |
Infrastructure Equities | 11 | 6 – 16 | 13 | 75.987.287 |
Structured Products | - | - | 1 | 4.388.860 |
European Property | 5 | 0 – 10 | 7 | 38.720.777 |
Local Property* | 18 | 13 – 23 | 15 | 85.851.631 |
Hedge Funds | 15 | 10 – 15 | 15 | 86.530.962 |
- Total Growth Assets | 69 | 49 – 89 | 71 | 410.676.833 |
Absolute Return Bond Funds | 6 | 0 – 11 | 7 | 39.401.723 |
Global Corporate Bonds | 10 | 5 – 15 | - | - |
Local Cash | 10 | 5 – 15 | 15 | 91.140.661 |
Money Market Funds | 5 | 0 – 10 | 7 | 41.707.627 |
- Total Income Assets | 31 | 11 – 51 | 29% | 172.250.018 |
- TOTAL | 100 | 100 | 100 | 582.926.854 |
Expected Funding Level in 10 years | 76,5% | |||
Risk on Funding Level: | 40% | |||
Expected Funding Level at 5% level in 10 years** | ||||
Implied Expected Return | 4,5% per annum | |||
Implied Risk on Return: Return at the 5% Level (over 10 years)*** | -1% |
* The Trustees would take all necessary steps not to reach the maximum level for this asset class although they recognise that an increase in value may result due to the particular circumstances of the Fund. It is the Trustees intention not to actively pursue any investment move or initiative that increases the Fund’s position and exposure in this particular asset class.
** The definition of Funding Level Risk implies that there is 5% probability that the Funding Level of the Fund in 10 years is 40% or lower.
*** The definition of Return Risk implies that there is a 5% probability that the return over the 10 year period is on average -1.0% p.a. or worse.