The total assets of Irish pension funds rose by almost £3 billion in 1996, according to the Irish Association of Pension Funds annual investment survey. By the end of 1996, the figure had climbed to £19.2 billion, compared with £16.3 billion at the end of 1995, the survey said. The increase is accounted for mainly by investment returns achieved by pension funds, which averaged around 15 per cent last year. New net cash flow in 1996 came to £895 million, compared with £663 million in 1995.

Exposure to equity markets decreased slightly overall, according to the IAPF document. Irish equity market exposure increased marginally to 23.6 per cent from 23.4 per cent, while exposure to international markets fell to 32.4 per cent from 35 per cent.

Fixed-interest investments declined slightly to 29.3 per cent of total assets at the end of 1996 from 29.6 per cent at the end of 1995. The survey concluded that the steady decline in fixed-interest weightings, which stood at 38.7 per cent of total assets in 1992, was due to continuing low interest rates.

Commenting on the results, the IAPF's chairman, Mr Paul O'Faherty, said the survey illustrated the underlying strength and stability of Irish pension funds. However, he added, the industry should not become complacent as there remained a need for greater pension coverage.

The survey was conducted by circulating a questionnaire to financial institutions and a number of the largest Irish pension funds.