Written answers
Tuesday, 23 November 2004
Department of Finance
National Pensions Reserve Fund
10:00 pm
Róisín Shortall (Dublin North West, Labour)
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Question 85: To ask 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. [29875/04]
Brian Cowen (Laois-Offaly, Fianna Fail)
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The 2003 annual report of the National Pensions Reserve Fund Commission shows that at 31 December 2003 the marked to market value of the national pensions reserve fund was â¬9,561 million. This included cash deposits of â¬1,283 million, net current assets of â¬36 million, unrealised gains on foreign derivative contracts of â¬70 million and equities and bonds worth â¬8,172 million. Of this â¬8,172 million, â¬8,099 million was invested in non-Irish equities and bonds.
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 most recent of these performance statements, for the quarter to end-September 2004, was published on October 15 last. It shows the total net assets of the fund were â¬10,778 million at 30 September 2004. Of this amount, â¬1,448 million was held in cash and other net current assets, including derivatives, and a total of â¬9,330 million was held in equities and bonds. The statement does not distinguish between Irish and non-Irish investments.
The commission's annual report is required to include 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 at the appropriate time.
As the Deputy will be aware, the National Pensions Reserve Fund Commission which manages the fund is independent of Government. It controls and manages the fund with discretionary authority to determine and implement the fund's investment strategy. 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.
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