The National Pension Reserve Fund is managed by commissioners who are independent of Government. They control and manage the fund with discretionary authority to determine and implement an investment strategy for the fund. This investment strategy is based on a commercial investment mandate with the objective of securing the optimal return over the long-term, having regard to the purpose of the fund as set out in section 18(1) of the National Pensions Reserve Fund Act 2000, and the payment requirements of the fund as provided for under section 20 of the Act, provided the level of risk to the moneys held or invested is acceptable to the commission.
Section 19 of the National Pensions Reserve Fund Act 2000 provides that, in investing fund moneys, the commission shall seek to optimise total financial return provided the level of risk is acceptable to the commission. The commission is, as a result, required to adopt a standard commercial investment policy.