IRELAND - The National Pensions Reserve Fund (NPRF) earned an investment return of 12.4% in 2006, according to its 2006 annual report.
The report said assets grew from €15.4bn to €18.9bn during the year, which by 31 May 2007, had reached €20.7bn.
Detailing adjustments in asset allocation, the report said the fund increased its allocation in emerging markets from 2% to 5%.
The NPRF also boosted its small cap equities allocation from 4% to 5% and invested a further 2% into infrastructure.
Between 2007 and 2009, the NPRF added its target allocation in large cap equities would decrease from 63% to 56%.
The NPRF said the revised allocations result stemmed from a review of its investment strategy in 2006 to determine if anything had materially changed since the NPRF's Commission last visited the issue in 2004.
NPRF chairman Paul Carty said: “While satisfied that the broad assumptions underpinning its strategy remain valid, the Commission has taken the opportunity to fine tune its asset allocation in order to increase the fund’s prospective return while maintaining its risk profile.”
The Commission also plans to diversify its fixed income allocation and intends to invest a portion of the portfolio into high quality, asset backed credit instruments. This initiative is part of the Commission’s strategy of making the fund’s assets work harder and seeking small amounts of incremental return across a wide range of asset classes.
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