Credit crunch knocks €175m off pension fund

POOR stock market returns triggered by the subprime credit crunch knocked 0.9% off the value of the national pension fund in the third quarter of 2007.

New figures yesterday showed the National Pensions Reserve Fund made a return of 5.9% for the first nine months of the year and the third quarter return registered a fall of 0.9% or €175 million over the period. At the end of September it was valued at €21,261m.

The value of the fund could be undermined further if the global credit crunch continues to destabilise markets, Dr Michael Somers, chief executive, National Treasury Management Agency warned.