Pensions must resist short-term temptations
Low yields on conventional Irish government bonds mean that pension funds should be cautious of plunging into sovereign annuities, writes David Kingston.
For a considerable time, Irish pension funds looked for sovereign annuities to be made available to help manage their increasing liabilities. So the decision last August by the National Treasury Management Agency (NTMA) to sell €1 billion of amortising bonds to back sovereign annuities understandably received an enthusiastic response from the pensions industry.
In the past week, it has emerged that Irish Life completed the first sale of a sovereign annuity as part of a...
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