NPRF value increases €450m

THE value of the National Pension Reserve Fund increased by €450 million in the first six months of the year.

New figures by the NPRF, which manages the fund, show that it gained 4.5% in value in the first half and the total amount invested stands at €10.6bn.

The fund had made a strong start to the year, but growth eased in April as stock markets went lower.

The NPRF said that after a positive start to April, both equity and bond markets reversed direction towards the end of the month. It picked up in May as the US economy showed signs of leading a global uplift and there was a strong rally in June because the international political scene led to higher markets.

Between April and the end of June, the fund gained just 1.5% in value.

The fund also published its annual report for 2003, showing that it added €1 billion in value over the course of the year and it invested a further €1.9 billion in world stock markets.

NPRF Commission chairman Donal Geaney said the fund’s decision to gradually invest its assets in the stock market was paying dividends as it has benefited from the global uplift in stock markets since March of last year.

“The Commission is now working on the next developmental stage of its mandate focusing on the expansion of the fund into new asset classes. Our objective here is to provide sources of additional return while diversifying risk. We have already this year awarded small-cap equity and corporate bond investment mandates and are working on market entry into the areas of property and private equity.”

The fund is also keen to get involved in public private partnerships, such as toll roads, and has set aside €200 million to invest in these projects.

Mr Geaney said since the fund was established it has outperformed all of its peers. However, the mark to market value of the fund is still some 2.2% lower than what has been invested since its inception in 2002. The fund has 71.5% of its assets invested in equities, 14.5% in cash and 14% in bonds.