Tag: sovereign pension funds

Sophia Grene

The Irish National Pensions Reserve Fund is getting a rough ride at the moment. Having been forced to pick up the tab for the recapitalisation of the Irish banks (some €7bn worth of preference shares in Bank of Ireland and Allied Irish Banks), it is about to lose its chief executive, John Corrigan, who moves upstairs to replace his boss, head of the National Treasury Management Agency, the NPRF’s parent body.

This will not be a pleasant job, but nor will running the NPRF. As well as easing in a new chief executive, it has to work on reconciling its responsible investment policy (it has signed up to the UN Principles for Responsible Investing and is a member of the Carbon Disclosure Project) with its legal mandate to “secure the optimal total financial return provided the level of risk to the moneys held or invested is acceptable”.

According to human rights advocate Mark Cumming, the contradiction between this and the NPRF’s own stated intention to “incorporate ESG factors into investment research, analysis and decision making” stands in the way of its developing coherent policies.

If the Irish government can push through amending legislation requiring the NPRF to bail out the banks, surely it should be able to rewrite the NPRF’s mandate in order to allow it to take long term non-financial risk factors into account and ensure Irish pensioners will not profit from destructive corporate practices such as human rights abuses or uncontrolled environmental damage.

About the blog

FTfm is no longer updated but it remains open as an archive.

FTfm's specialist writing team offer their insights into the global fund management industry.

About the authors

Pauline Skypala has been editor of FTfm for four years having previously been deputy personal finance editor. She joined the FT in 1999 and has been writing on savings and investment issues throughout her career.

Steve Johnson, FTfm deputy editor, has been a journalist for 17 years, 10 of which have been with the FT.


Sophia Grene, reporter on FTfm, has been a financial journalist in print and online for 12 years.

Ruth Sullivan has worked as a financial/business journalist and foreign correspondent and for the past 10 years has been at the FT.

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