PENSION RESERVE FUND:THE NATIONAL Pension Reserve Fund was worth "marginally less" at the end of last year than the cumulative contribution made by the Irish exchequer since it was established in 2001, according to the Comptroller and Auditor General.
At December 3lst last, the fund, which is managed by the National Treasury Management Agency, had a market value of €16.1 billion.
The CAG’s report shows that the exchequer has invested €16.87 billion into the pension fund since it was established by former finance minister Charlie McCreevy in 2001.
The fund’s investments declined in value by 30.4 per cent in 2008, as financial markets around the world felt the effects of the global credit crunch.
In value terms, this equated to a decline of €7.34 billion last year. The exchequer makes a contribution of 1 per cent of gross national product each year. In 2008, this amounted to €1.69 billion.
The investment composition of the fund changed substantially in 2009 as the Minister for Finance directed it to invest €7 billion in preference shares issued by Bank of Ireland and AIB, to help recapitalise the two institutions.
