Pension fund hits €12m in March

The value of the fund that will help pay for the State's pension needs from 2025 topped €12 billion at the end of the March, the agency responsible for it reported yesterday.

The National Pension Reserve Fund (NPRF) said it made a return of 2.4 per cent on its investments in the first three months of the year.

Its actual value at the end of March stood at just over €12.3 billion. That figure included a €330 million contribution from the Exchequer. Excluding that sum, the fund grew by €290 million during the quarter. It began the three-month period with €11.7 billion in the kitty.

Former minister for finance, Charlie McCreevy, created the NPRF when he was in office. It is designed to help cover the cost of State and public service pensions from 2025.

The State is committed to contributing 1 per cent of gross national product (GNP) to the fund until the payout begins at that date.

Pension commission chairman, former Elan chief executive Donal Geaney, said yesterday that the fund's European equity investments drove its growth during the quarter. A minor rally in the dollar helped growth in its non-European equities.

He added that 10.6 per cent of the fund is made up of cash.

"This reflects the commission's decision not to invest further moneys in bonds while yields are at or near historical low levels," Mr Geaney said.

Figures released with the statement yesterday show that €9.11 billion, or 74 per cent of the fund, is held in large-cap equities. Small caps and property account for €369 million and €19 million respectively. Bonds still account for €1.5 billion of the fund.