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 Pensions and Lifetime Savings Association (PLSA) has announced it will shrink its board by more than one-third as part of a governance overhaul to make it "agile and more appropriate".
Smaller FTSE 350 defined benefit (DB) schemes were nearly 15 percentage points less well-funded than larger schemes in 2017, according to a Goldman Sachs Asset Management (GSAM) analysis.
The advent of collective pension systems could help the UK avoid demographic challenges which will make it "impossible" for society to help savers in retirement, experts say.