With E2.6bn in assets, members of the ESB Pension Scheme expect, and get, world-class standards in all aspects of their fund’s activities.
“When it comes to standards we look to provide best practice measured against global yardsticks, not just domestic ones,” says Brid Horan, general manager. “When it comes to investment we take a global view and also appoint the best of international and Irish managers.”
The fund, set up in 1942, is one of the longest established in Ireland, There have been many changes in the investment options allowed, with tight restrictions initially and full investment discretion from the mid-1990s. The trustees include two elected by members and two appointed by ESB, selecting their own chairperson, also a trustee. Their primary responsibility is the investment of the assets, with a separate committee responsible for overseeing scheme benefits. This focus allows the trustees to concentrate on investment issues and they play a key role in this respect. They are actively involved in asset allocation, investment decisions and in appointing and managing the external fund managers. Joe Maher, trustee chairperson and a trustee for almost 10 years, says: “I am very pleased that we have been honoured with this award which reflects the effort and commitment of the current and previous trustees, with very effective support from Brid Horan and valuable input from David Hager, our investment adviser. We believe it is essential to keep up to date with developments affecting the investment industry including assessing the likely long-term condition of markets.”
The implementation of the EMU allowed Irish institutions to reassess their holdings, in particular the strategy on domestic and international investment. “We have been particularly pro-active in this area,” says Horan. One of the major changes since 1998 has been the decision to make Eurozone assets the domestic asset class. The concentration of the Irish market had meant a stock and sector-specific risk higher than that which is now enjoyed by the fund. Irish stock holdings were reduced and a Euro-zone index fund based on the STOXX index has been introduced as well as an actively managed Eurozone portfolio.
Horan believes that the management structure of the fund aided this transition.
Horan also expresses her pleasure in the success of the ESB submission in the country awards, saying: “As an external award it carries no bias, and is an opportunity to be seen as ‘best-in-class’ in a number of countries across Europe.”

Topics