The Irish National Pensions Reserve Fund, to provide for future public service pension liabilities, in the third quarter of 2008 had a a return of -6.0%. In the first nine month of of 2008, the fund lost -17.3%.
The performance in 2008, reduced the Fund's annualised performance since inception to 2.8% compared with 6.0% at end 2007.
The Fund's performance compares with a performance by the average Irish managed pension fund of -9.2% for the quarter and -22.6% year to date. In 2007 the Fund earned a positive return of 3.3% compared with -3.7% for the average Irish fund.
The Fund's value at 30 September 2008 was €18.7 billion.
The value of the fund was €21. billion in December and the Government's 2008 contribution for the three quarters would be about €1.2 billion.
Asset Allocation at 30 September 2008
| |
€m |
% |
| Large Cap Equity |
11,173 |
59.8 |
| Small Cap Equity |
714 |
3.8 |
| Emerging Markets Equity |
294 |
1.6 |
| Private Equity |
563 |
3.0 |
| Property |
763 |
4.1 |
| Commodities |
157 |
0.8 |
| Fixed Income |
3,313 |
17.7 |
| Currency and Other Funds |
218 |
1.2 |
| Cash |
1,494 |
8.0 |
| Total Net Assets |
18,689 |
100.0 |
The Fund has been increasing its cash balances and maintaining a cautious approach to equity investment given the volatile environment that has existed since the onset of the credit crisis. Current cash balances of €1.5 billion (8.0% of the total Fund) represent a 7% overweight cash holding against equities.
The National Pensions Reserve Fund (NPRF) was established in April 2001 to meet as much as possible of the costs of social welfare and public service pensions from 2025 onwards. The Government invests the equivalent of 1% of GNP in the Fund annually. No money can be withdrawn before 2025 and from then on, drawdowns will continue until at least 2055.
