Pension reserve has 2.4% Q1 return
The National Pensions Reserve Fund (NPRF) - created to provide partial funding of Ireland’s pension costs from 2025 - today reported a return of 2.4% for the three months to March 31.
The Fund’s value at end March was €12,309m. Excluding the Exchequer contribution of €330m, the Fund appreciated by €290m during the quarter.
Commission Chairman, Donal Geaney, said first quarter returns were driven by the Fund’s European equity investments.
The performance of non-European equities was aided by a minor rally in the US dollar. At 10.6% the Fund continues to hold significant cash balances.
Mr Geaney added the Commission was proceeding with the diversification of the Fund’s asset classes – announced in February 2005 - with the aim of increasing its prospective return without substantially altering its overall risk profile.
To this end the Fund had increased its small cap equity exposure to 3% and had agreed to commit some €125m to property investments.
Mr Geaney added that the investment of cash committed to property funds would take place on a phased basis as fund managers identified suitable market opportunities.
