John Ellis

BY JOHN ELLIS

FINANCIAL ADVISOR

ACCORDING to the March Pension Fund Statistics (Q4 -2021) report published by the Central Bank total assets in the sector grew by 4% over Q4-2021 to stand at €135.5 billion. is is due to increases in pension fund reserves (€2.8 billion) and investment fund shares (€1.9 billion).

Irish pension funds hold €12.2 billion in Government bonds. e majority are held in bonds with France (€4.2 billion), Germany (€2.0 billion), Ireland (€1.6 billion) and Spain (€1.3 billion). While direct holdings of investment funds stood at €50.9 billion at end-Q4 2021. e two main investment fund types are Equity funds (32.4%) and Bond funds (31.9%). Other funds (17.6%) saw the largest growth over the quarter, increasing by €1.9 billion. ese gures show that many of us “have skin in the game” with most of us using personal pensions, company pension PRSA’s and buy out bonds as our investment vehicles.

But we rarely look under the bonnet of these plans with many using what’s called the default investment strategy, ie. leaving asset allocation to the investment managers and allowing them to de-risk our funds as we near retirement. A very valuable tool in investing but can lead to panic when things take a turn for the worse.

It’s crucial to have some understanding of what drives markets, how our money is invested and how we should act when markets take a dive especially at times like this with volatility in the nancial markets unnerving some investors. is is due to the fact that we experience the pain of loss more acutely than the upside gains, and we forget we are in for “the long haul” leading to some very erratic decisions.

We have forgotten our nancial history! In the last 25 years we have weathered the dot-com crash, 9/11, the global war on terror, the global nancial crisis, the COVID-19 pandemic.

Since 1980 there have been nine Bear markets with a decline of 20% or more lasting for at least two months. While many of the Bear markets have been severe, the Bull market surges have been even more dramatic, with returns of up to 99% being the average total return.

So, what are we to do in this time of crises?

Stay invested! Remember investing in the stock market is a good choice for those who are looking for long-term results.

Review your attitude to risk. All investing is subject to risk, and past performance is no guarantee of future returns. If the downturn is causing you to lose sleep maybe its time to re-look at your risk appetite and tolerance.

Stay or become more diversi ed – have exposure to the di erent asset classes – while one area is down another can be up.

Rebalance your portfolio at least once a year even when the constituent parts are declining in value.

Trying to time the market is ine ectual. Since 1980 the best and worse trading days often happen close together and occur irrespective of the over all market performance for the year. Of the best 20 trading days nine occurred in years with negative total returns and of the 20 worse trading days eleven occurred in years with positive total returns.

Predicting which segment of the market – the asset classes – will do well is also an unknowable.

But what is known is that overall, investors who have held their nerve, keeping their investments during periods of high volatility and decline in investment value have seen their portfolio not only recover but their overall value increase.

Being in control matters. Being nancially educated make a di erence. Financial advice is paramount. Having a well-diversi ed portfolio leads to peace of mind and usually better returns on your investment over the long term.

Pensions: understanding what drives markets

John@ellis nancial.ie 086 8362633

April Sounds - a heartwarming success

APRIL Sounds raised over €7,000 for UNICEF, Irish Red Cross Ukraine appeals and Kilkenny Civil Defence Ukraine emergency appeal

Kilkenny’s stunning St. Canice’s Cathedral hosted April Sounds opening concert on Friday night. Coined as “one of the greatest nights of music” to take place in the venue. Stellar performances on the night from Lisa O’ Neill, Rónán Ó Snodaigh & Myles O’Reilly, Arrivalists and Bríd Lyons.

A world premiere of ‘All e Tired Horses’ performed by Lisa O’ Neill, Rónán Ó Snodaigh & Myles O’Reilly left the audience speechless. O’ Neill closed the nal season of the last ever Peaky Blinders with her version of the song by Bob Dylan.

Special guests in the audience from Ukraine who had just arrived in Kilkenny in the early hours of ursday morning attended the concerts over the weekend and thoroughly enjoyed the beautiful and uplifting music.

Commenting on the concert series, Mayor of Kilkenny Municipal District, Cllr. Andrew McGuinness said “ e music community in Kilkenny is just incredible. We are blessed to have so many great people that are each important cogs in the wheel that makes our vibrant music scene so special.

“ e April Sounds gigs over the weekend are evidence of that and a credit to Andrea Keogh and her passion for creating fantastic events, our brilliant Arts O cer Mary Butler, Gary and Dave from Rollercoaster Records, our talented sound and lighting technicians and of course the incredible lineup of performers who have all given us a lift after being starved from concerts like this for so long.

It was particularly special to see the heartwarming welcome for the Ukrainian people in attendance who have found safety in Kilkenny. As Mayor, I’m immensely proud of our music community. ey are simply great people.”

On Sunday morning, April Sounds moved to the beautiful Medieval Mile Museum for a jam packed day of traditional and folk music. Caoimhe and Séamus Uí Flatharta opened the day with a stunning version of Scarborough Fair to a packed venue. At 3pm, Kilkenny’s Gary O’ Neill aired beautiful tracks from his new EP. Audiences enjoyed Galway native Niamh Regan’s pre-gig chat with Irish Times journalist and Culture Vultures co-curator Tony Clayton-Lea. e fantastic Code Of Behaviour kept audiences entertained outside the museum during concert changeovers and Happy Valley Co ee served delicious home-made treats and great co ee throughout the day.

As the day came to a close, Kilkenny’s Elise opened for Ailbhe Reddy and wowed everyone in attendance. Ailbhe Reddy took to the stage with a pre-gig chat with Tony ClaytonLea about the creative process of creating her debut album followed by a live set airing new tracks from her second album due out later this year.

Limerick born, Kilkenny based singer John Hegarty closed April Sounds on Sunday evening to a packed house at the launch of his new record ‘Twilight’ released on Rollercoaster Records.

“It is fantastic to have the nancial support of the LLPS funding from the Department of Tourism, Culture, Arts, Gaeltacht, Sport and Media to enable us to deliver this wonderful music series. e breadth of performers and our beautiful Kilkenny venues enabled so many to experience the magic of live musical events once more. A huge thank you to all who made this happen.” Mary Butler Arts O cer.

An incredible total of €5,682 was raised for UNICEF and the Irish Red Cross Ukraine appeals. A further €1,500 was generously donated by April Sounds artists and audiences over the weekend for Kilkenny Civil Defence Urgent Appeal for the Ukrainian community who arrived in Kilkenny last week.

April Sounds was funded by the Department of Tourism, Culture, Arts, Sport and Gaeltacht. Delivered locally by Kilkenny County Council Arts O ce.