NAPF comments on new 100-year bonds

14 March 2012

NAPF chief executive, Joanne Segars, said that a 100-year bond would be too long for most pension funds, and it is not probable that many would buy them.

The National Association of Pension Funds (NAPF) commented on reports today that the Government is considering issuing bonds with a 100-year repayment date.

Joanne Segars, NAPF Chief Executive, said: "Most final salary pension schemes are now closed to new joiners and are becoming more mature. Their liabilities are long-term, but not that long-term. Pension funds are looking for 30-, 40- and 50-year index-linked debt, and would much rather the Government issue more of those. Even if a 100-year bond were attractive in duration, there would be a question mark over whether it would yield a strong enough return for investors."

Press release

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