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Pension Provisions.

Dáil Éireann Debate, Wednesday - 5 October 2005

Wednesday, 5 October 2005

Questions (51)

Emmet Stagg

Question:

113 Mr. Stagg asked the Minister for Finance the amount in the funds of the National Pensions Reserve Fund at the latest date for which figures are available; the amount invested outside of Ireland; the amount held in cash balances; and if he will make a statement on the matter. [26651/05]

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Written answers

The 2004 annual report and financial statement of the National Pensions Reserve Fund Commission shows that at 31 December 2004 the market value of the fund was €11,689 million. This included cash deposits of €1,233 million, other net current assets of €38 million, unrealised gains on foreign derivative contracts of €28 million, €11 million in property, and equities and bonds worth €10,378 million. Of this €10,378 million, €10,260 million was invested in non-Irish equities and bonds. Under the National Pensions Reserve Fund Act, the fund is prohibited from investing in Irish Government bonds and all of its bond investments are in bonds issued by other euro zone governments.

The commission also publishes quarterly performance statements setting out a summary of the fund's performance in the year to date as a means of improving the timeliness of information on the fund. The quarterly statements do not distinguish between Irish and non-Irish investments. The most recent of these statements, for the quarter to end-June 2005, was published on 14 July 2005. It shows that the estimated market value of the fund was €13,294 million at 30 June 2005. Of this amount, €1,404 million was held in cash and other net current assets, including derivatives, €26 million in property, €137 million in commodities, a total of €10,123 million in equities and €1,604 million in bonds.

The commission is required by the National Pensions Reserve Fund Act 2000 to include in its annual report information on the investment strategy followed by the fund, a report on the investment return achieved and a valuation of the net assets of the fund at year-end. These requirements are designed to ensure that detailed information concerning the fund is made available to the Minister and the public.

As the Deputy will be aware, the National Pensions Reserve Fund Commission, which controls, manages and invests the fund, is independent of Government. It has discretionary authority to determine and implement the fund's investment strategy. The 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.

Question No. 114 answered with QuestionNo. 106.
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