Pension Reserve Fund - Could it crash ?

[rockofcashel]

I've just had a thought about the way stock markets are falling, and thought about the National Pension Reserve Fund, and how it might be faring.

So I looked up Finfacts, and as of the 16th of October it was up 5.9% for the year, but, was down 0.9% for the preceding quarter.

Since then, the only direction both the ISEQ and almost all international stock markets have been heading Southwards.. so I was wondering.

Could the Pension Reserve Fund have lost money this year, or are losing money this year currently... and how expposed are they to the ISEQ.. which seems to be collapsing at the moment ?

[CookieMonster]

The NPRF is a fairly well diversified fund so if a fall is likely then it would only be a small one as as far as I know it's not overly exposed to the ISEQ. I used to know this stuff. *sigh*

[odie1kanobe]

They are no worse a position than the rest of the pensions industry. In fact they are likely to be in a better position as they are investing for the long term and aren't stuffed with fund managers only interested in this years fat bonus.

They will make poor investments and lose money but they will also make good ones that more than make up for it.

Would you sack someone who invested €50 million in 10 different investment and 1 of them failed costing €20 M but 9 worked with average returns of 50% per year ?

Tabloids would sack but need to make mistakes to achieve success.

[kerrynorth]

They reduced their equity weighting which was way too much early on into bonds and commodities. They are not really exposed to the ISEQ but they would feel a worldwide equity shakeout nonetheless.

[feargach]

They reduced their equity weighting which was way too much early on into bonds and commodities. They are not really exposed to the ISEQ but they would feel a worldwide equity shakeout nonetheless.

The more into commodities they get, the richer our retirees will be. Shares globally are insanely overvalued.

The publicly quoted shares on Wall St are themselves valued at double the GDP of the entire USA, and that's forgetting that non-quoted private equity firms account for the majority of US business activity.

Yes, most of the fortune 400 (average worth €3 billion) made their money in the global game of "sell the worthless paper on to the greater fool", and good for them. But that's no game to be staking peoples' retirement on.

The whole point of playing the greater fool game is that the beneficiary has the power to time his exit before the market bankrupts all those still playing.

Populations of middle-class retirees can't do this. Their birthdays determine when they get to cash out.

[adrem]

You can get a breakdown by asset class of where the fund invests from the NTMA site -

http://www.nprf.ie/home.html

basically there is little or no irish exposure. There are only 2 irish managers involved (BIAM and ILIM) - and only ILIM has any active management responsibilities and they are in Bonds not equities. BIAM only have a passive mandate.

The fund will have suffered from the general malaise though

[Watcher]

The Pension Reserve Fund is to fund the civil and public service pensions only, yes? Most people wont be too worried about it, they will be worried about their own pensions more so.

[Auditor #9]

George Lee on Radio 1 just told Mary Wilson that 9 billion was wiped off Irish pensions this year and that the fund is exposed to world markets...

[CookieMonster]

and that the fund is exposed to world markets...

Well blow me down!

[saratoga]

George Lee on Radio 1 just told Mary Wilson that 9 billion was wiped off Irish pensions this year and that the fund is exposed to world markets...

Of course it is, you moron. ANY stock market investment is exposed to world markets.