Mr. Brendan Ryan:

It is important to appreciate that court funds are held in trust by the courts. The Courts Service, in accordance with the Courts Service Act 1998, is responsible for the management and administration of the courts and provides a support service for judges. It is in this capacity that the service has a role in the management and investment of court funds. These funds are invested in line with the provisions of the Trustee (Authorised Investments) Act 1958 and subsequent orders. The Courts Service was established in 1999 and in 2001 commenced a review of the management and investment of court funds which culminated in the establishment of a number of customised funds in December 2003. Most court funds have since been invested according to the new arrangements, including District Court and Circuit Court funds, in addition to High Court funds. The Courts Service operates a very conservative investment policy to ensure the capital sum is protected, particularly in the case of minors. Where necessary, an appropriate balance is struck between income generation and capital preservation and this approach has worked well in the past 11 years. Very good returns have been generated, while protecting court funds from the worst effects of the credit crisis. Some 65% of funds are held in cash-based assets and bonds, while there is a 35% exposure to equities and corporate bonds.

In making a decision to invest court funds on behalf of a ward or a minor a key factor is the length of time the funds will be held by the courts. Shorter term funds are invested in cash-based assets and funds held for longer periods are invested in the most appropriate funds available.