IAPF warning on pension fund change

OCCUPATIONAL pension fund managers have been warned not to increase their exposure to property investment following changes in this year’s Finance Act.

If Finance Minister Charlie McCreevy was hoping to trigger another property boom by the change he is set to be disappointed.

In its assessment of the change, which allows funds to borrow to invest in property, the Irish Association of Pension Funds (IAPF) has issued a severe health warning. It said under no circumstance should such funds increase their property exposure beyond the traditional 10%. Its advice, if heeded, rules out any serious boost to the already highly-charged Irish property market.