Written answers
Tuesday, 1 February 2005
Department of Finance
Pension Provisions
8:00 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. [2494/05]
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 market value of the 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 latter figure, â¬8,099 million was invested in non-Irish equities and bonds.
The most recently published figures pertaining to the holdings of the National Pensions Reserve Fund were included in the end year press release of the National Treasury Management Agency which was issued on 31 December 2004. It shows that the estimated market value of the fund was â¬11,686 million at 31 December 2004. Of this amount, â¬1,309 million was held in cash and other net current assets, including derivatives, a total of â¬10,365 million was held in equities and bonds, and â¬12 million was held in property. 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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