A large number of Irish fund managers are through to the second round in the competition to manage the billions of pounds in the new national pension fund.

The National Treasury Management Agency (NTMA) which is running the fund has now written to all fund managers who have made it through the first hurdle.

The NTMA, using an automated programme and in conjunction with advisors the Frank Russell Company, has whittled down an initial 574 expressions of interest to a request for 178 detailed proposals in the next stage of the competition.

Many managers have expressed interest in managing multiple funds, with some submitting applications for as many as 12.

Of the 95 institutions involved, a large number of Irish fund managers are understood to have been asked to provide more detailed proposals, including AIB, Bank of Ireland and Irish Life.

These firms now have a deadline of October 22nd to submit more detailed proposals to Irish fund managers had feared that their relative lack of scale could mean they would be barred from competing for the business.

It is expected that the value of the overall fund will be equivalent to 42 per cent of GNP by 2025, equivalent in today's terms to more than €41 billion (£32.3 billion).

As many as 20 requests for detailed proposals have been made for many of the individual management contracts on offer.