IRELAND - The National Pensions Reserve Fund (NPRF) has reported a 14.9% return for the nine months to 30 September 2005, and a return of 6.5% for the quarter on the back of rallying equity markets.
This brings the total value of the fund, created to provide partial funding of Ireland’s pension costs from 2025, to e14.5m, an investment return of e1.8m for the year so far.
Michael Somers (pictured), chief executive of the National Treasury Management Agency, which manages the fund as agent of the NPRF commission, said Q3 returns had been driven by the continuation of the summer equity market rally into the autumn.
“A combination of strong corporate earnings and a low inflation and interest rate environment provided a favourable context in which markets responded,” he said.
The NPRF added that markets had now entered a volatile phase in the face of continuing high energy prices and tightening Federal Reserve policy.
Progress has also continued on the diversification of the fund’s investment base, which was announced in February 2005, said Somers.
The emerging markets equities programme began in September with an investment of e142m, or 1% of the fund’s value.The fund has a target allocation of 2% to emerging markets equities.
HMRC has confirmed providers operating relief at source pension schemes can continue to collect automatic tax relief at a basic rate of 20% under new Scottish Income Tax rules.
The Pensions Regulator (TPR) is seeking "improved" powers to set a schedule of contributions in defined benefit (DB) schemes in the government's upcoming white paper, it has revealed.
New regulatory rules which require providers and advisers to produce annuity illustrations will not solve the problem of consumer detriment as they are "fundamentally" flawed, according to Retirement Advantage.
Paul Budgen is set to join financial technology and auto-enrolment (AE) firm Smart Pension as director of business development.