Pension Reserve Fund

[pjoz]

Since very few FFers have attempted to explain National Competitiveness for me Im hoping ye might have more insight on this.

Fund Performance
Year To Date
1 January to 30 September 2009
Discretionary Portfolio 16.4%
Directed Investments 0%

Now on competitiveness those who attempted to explain the concept spoke in terms of selling things for more than they cost and producing them for less than others. Basically operating in much the same way as a corporation.
Given that the priority of a corporation is maximise shareholder wealth could somebody explain how investing such significant resources in a non performing asset could be tolerated.
I would ask only FFers respond as this is their private piggy bank

[pjoz]

I suppose I should add some background detail as the majority of FFers Ive come across appear to be "economically illiterate"

The National Pensions Reserve Fund was established in April 2001 to meet as much as possible of the costs of Ireland's social welfare and public service pensions from 2025 onwards when these costs are projected to increase dramatically due to the ageing of the population. No money can be drawn down before 2025 and, from then on, drawdowns will continue until at least 2055 under rules to be made by the Minister for Finance. By spreading the Exchequer burden arising from Ireland's additional pension commitments over a lengthy period, these drawdowns will contribute to the long-term sustainability of the pension system.

The Fund is controlled and managed by the National Pensions Reserve Fund Commission. The Commission's functions include the determination and implementation of the Fund's investment strategy in accordance with its statutory investment policy. This policy requires that the Fund be invested so as to secure the optimal total financial return provided the level of risk is acceptable to the Commission.

[Sync]

I don't disagree that the purchases were risky (and probably inappropriate for a pension fund to get involved in), but if you're an investment manager looking over the term of 25 years, if (and given the current situation that's a really big if) the banks remain on the market, there's little doubt they'll be worth more in 2017 for instance than they are now.

Agree it's risky, it's not something I'd have done, but it's in line with the legislation's rules.

I'm not an FFer, this isn't an "FF piggybank" and the topic would have been better off in Economy unless you're just trolling party sites.

[pjoz]

I dont know any investment manager who would pull a third of their funds out in the middle of a bull market and invest in such an asset.

In my opinion FF turned into a piggy bank to bail out the banks,something not envisaged in the "legislation" and its not a troll of party sites, its an economic issue granted, but FF are responsible for the economic well being of the state and for that reason I directed it at them.

[Sync]

No, it's trolling. Will you be posting the same thing in an FG thread if/when they win the next election because then it will be "FG's piggy bank"? Don't be silly.

[pjoz]

Did FG set it up and change the rules of the game as it suited them? It does raise an interesting question as to what FG intentions are towards it?

[Sync]

Did FG set it up and change the rules of the game as it suited them? It does raise an interesting question as to what FG intentions are towards it?

Maybe you should start a thread in every party's site and ask them.

[pjoz]

Maybe.Im getting from you FF dont do economic discussion?

[Supermanpolitician]

No, it's trolling. Will you be posting the same thing in an FG thread if/when they win the next election because then it will be "FG's piggy bank"? Don't be silly.

Have to agree. It is trolling. It is very hard to decipher the opening post.

[pjoz]

Have to agree. It is trolling. It is very hard to decipher the opening post.

It is an economic question posed to FF members. If it is more appropriate in the economy forum I have no problem in it being moved.

FF took the decision to divert these funds from an investment strategy that yielded 16.4% returns over the period to a strategy that yielded 0% returns.

Pointing this out and asking for an explaination from FF in my opinion isnt trolling.