The National Pensions Reserve Fund (NPRF) has reported a 2.4% return to end March 2005, and has continued to diversify its investments..
The Fund's value at the end of March was €12,309m. Excluding an Exchequer contribution of €330m the fund increased by €290m during the quarter.
The Commission Chairman, Donal Geaney, said the Commission was proceeding with the diversification strategy of the fund's asset classes - announced in February 2005 - with the aim of increasing its return without substantially altering its risk profile.
He said the Fund had increased its small cap equity exposure to 3% and had agreed to commit €125m to property investments. He said investment of cash to property funds would take place on a phased basis, as suitable market opportunities were identified.
Mr Geaney said first quarter returns were driven by the Fund's European equity investments and that the performance of non European equities was aided by a minor rally in the US dollar.
He said that the cash balances of the fund are significant at 10.6% and that 'this reflects the Commission's decision not to invest further moneys in bonds while yields are at or near historical lows'.
The NPRF was created to provide partial funding of Ireland's pension costs from 2025.
Ireland's National Pensions Reserve Fund (NPRF) has posted a 2.4% return for the first quarter (9.6% annualized). On March 31, the funds value stood at €12.3bn, a rise of €290m (excluding state contributions) since December 31.

Donal Geaney, the fund's chairman, told the press that growth in the past quarter had been driven by the Fund's European equity investments.

Mr Geaney, former Élan CEO, has pursued a policy of diversification since February of this year, with the stated aim of placing a larger amount of the funds assets in companies with small market capitalizations and in property funds.

The fund was set up by the  National Pensions Reserve Fund Act, 2000 to partially meet the expected rise in Irish pension costs from 2025 onwards.