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The Actuary The magazine of the Institute & Faculty of Actuaries

Irish national pensions fund diversifies

Ireland’s e12bn national reserve pension fund announced in February that it intended to seek to improve its risk/reward profile by diversification of asset classes. The fund, to which government has pledged to contribute 1% of GDP every year, aims to reduce its dependence on large-capitalisation equities by increasing the weighting for alternative classes, including private equity.

Fund performance fell slightly short of benchmark in 2004, but is cumulatively well in excess since launch. Notably, the fund indicated that it did not intend to make use of hedge funds as an asset class, citing potential difficulties in managing such investments.