The National Pensions Reserve Fund (NPRF) earned an investment return of 12.4 per cent last year.
According to the fund's annual report, the fund's assets grew from €15.4 billion to €18.9 billion last year.
The fund also announced an investment return of €1.447 billion for the first five months of this year. The fund's value on the 31 stMay this year stood at €20.751 billion.
Speaking today, Dr Michael Somers, chief executive of the National Treasury Management Agency (NTMA) which manages the fund, said: "following a volatile first quarter, the fund has performed well for the first five months of the year with global equity markets posting strong gains in April and May as worries about a US economic slowdown receded. However, as seen recently, markets are vulnerable to a correction due to rising interest rates."
The National Pensions Reserve Fund was established in 2001 to build up assets which will part-finance the exchequer cost of social welfare and public service pensions.