IRELAND - The National Pension Reserve Fund (NPRF) revealed today it booked a negative third quarter outturn of -6% subsequent to more losses on its large equity portfolio, pulling its overall negative return this year down to 17.3%.
The pension reserve fund said it has been increasing its cash balances, currently 8% of the fund, and maintains it will continue its cautious approach to equity investments which it has adopted as a result of the credit crunch.
The fund, worth €18.7bn at the end of last month, said the negative result brought the fund's return year to date to -17.3%, reducing the fund's annualised performance since inception to 2.8% compared to 6% last year.
NPRF is still heavily exposed to equities, with a total large and small cap equity holdings of 63.6%, as the fund will only pay out its first pensions in 2025.
Adrian O'Donovan, spokesman for the fund, told IPE the NPRF is currently 7% underweight in equities and has not made any equity allocations in the last 12 months.
He added the fund is also currently cautious in terms of its property and alternative investments, remaining underweight in both categories.
The NPRF will review its strategic asset allocation next year.
Earlier this month, the Organisation for Economic Co-operation and Development (OECD) warned the Irish government should stop its annual contribution to the NPRF until the economic situation had improved. (See earlier IPE story: ‘Ireland should freeze NPRF subs - OECD')
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