Oireachtas Joint and Select Committees
Thursday, 22 November 2012
Public Accounts Committee
2011 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Chapter 2 - Government Debt
Chapter 4 - National Pensions Reserve Fund
Chapter 25 - Accounts of the National Treasury Management Agency
National Treasury Management Agency - Financial Statements 2011
National Pensions Reserve Fund Commission - Financial Statements 2011
11:50 am
Mr. John Corrigan:
It is the same issue but it is a subset of it. With the agreement of the chairman of the NPRF, I could describe the exchange-traded fund. Among the shares to be transitioned were shares in what is called an exchange-traded fund, ETF. This is a fund that reflects the underlying value in a basket of shares. In this case, the basket of shares consisted of shares in the Russell 2000 Index, which is an index that is traded in the United States. The shares in ETFs trade in their own right. What happened in this case is that we would have got the price of the share at the opening in the morning. The transition manager then decomposed those shares and sold off the 2,000 shares individually. That is to put it simply.