IRELAND - The National Pension Reserve Fund (NPFR) has appointed a panel of three transition managers to minimise overall transaction costs when moving around its assets.
The €21bn (US$29.7bn) public pension fund considered the T-charter as part of its evaluation process.
Adrian O’Donovan, senior manager, NPRF, told Global Pensions: “We have appointed a panel to give us more flexibility when we approach a transition, as each manager has different strengths regarding asset classes and geographical regions.”
O’Donovan commented that as the fund continued to grow it was increasingly important to manage the cost of changing asset managers.
The NPRF have chosen Lehman Brothers, State Street Bank and Citigroup Global Markets to its transition management panel.
In a separate development, the fund announced its return rate had hit 5.9% in the first nine months of 2007 and this was down from an average rate of 6.5% in July.
Dr Michael Somers, chief executive of the National Treasury Management Agency (NTMA), was upbeat about the result: “Despite the volatility in global markets in the third quarter of the year, this is a solid investment performance by the National Pensions Reserve Fund.”
During the third quarter the fund continued towards its diversification target set for 2009.
It committed a further €156m (US$220m) to private equity, through three vehicles and €15m (US$21.2m) to its first allocation to an Irish venture capital fund.
It now holds €929m in private equity and €1,062m in real estate.
The closure of the BT Pension Scheme (BTPS) to future accrual means 20,000 active members will move to an 'enhanced' defined contribution (DC) scheme, after the company reached a deal with the union.
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The pensions watchdog has been through some testing times and is making significant changes to the way it regulates. Speaking to Stephanie Baxter, Mark Boyle takes stock and looks to the future
Enhanced powers for The Pensions Regulator (TPR) to prosecute and fine company directors who "wilfully or recklessly" put their defined benefit (DB) pension scheme at risk will be hard to enforce, commentators say.