Mr. Brendan Ryan:

By way of background, if the Deputy does not mind, I will introduce the subject and then Mr. Quigley, who is on the investment committee of the Office of the Accountant of the Courts of Justice, can provide further details. When a person is taken into wardship, the President of the High Court appoints a committee, usually one person, to deal with the ward's property and in certain cases to make recommendations for the ward's personal welfare. In approximately 75% of cases, the ward's committee is a family member. If there is no suitable or willing private person, the President can appoint a general solicitor for minors and wards of court to act as the committee.

As for the investment, if the Chairman will bear with me, it is important to appreciate the 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 support services for judges. It is in this capacity that the Courts Service has a role in the management and investments of court funds. The Courts Service operates a prudent investment policy and this has ensured the capital sum is protected, especially in the case of minors, and where necessary, an appropriate balance is struck between income generation and capital preservation. This approach has worked really well over the past 12 years, where good returns have been generated while protecting court funds from the worst effects of the credit crisis. A significant element, approximately 65%, of funds are held in cash-based assets and bonds and then there is approximately 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 in deciding in which funds to invest is the time period during which the funds will be held by the courts.

Shorter funds are invested in cash-based assets while funds that are held for longer periods are invested in the most appropriate funds. The performance of longer-term funds cannot be assessed properly by taking one year in isolation. One must look at the cumulative investment performance over a longer period.