The net asset value of investment funds resident in Ireland rose by 2.8 per cent in the fourth quarter of 2014 from €1,041 billion to €1,070 billion, according to new figures published by the Central Bank.

Net investor inflows to investment funds amounted to €14.3 billion during the quarter, almost half of the overall increase in net asset value.

The Central Bank said net positive revaluations of €14.6 billion in the asset portfolios of investment funds based in Ireland were driven entirely by increases in equity prices in Europe and the US.

Within euro area debt security holdings, there were some notable inflows into peripheral country debt, which the Central Bank attributed to improved market sentiment towards euro area and global economic prospects.

Spanish debt holdings rose to €7.5 billion as investment funds invested an additional €1.1 billion, while Italian debt holdings increased slightly to €16 billion on the back of an additional €0.4 billion investment.

During the quarter under review there were outflows of €1.4 billion and €0.4 billion from German and French debt securities respectively.