Pension fund assets rose by 24 per cent to £38.2 billion (€48.5 billion) last year from £30.8 billion in 1998. The figures, published in the Irish Association of Pension Fund Managers (IAPF) annual investment survey, are attributed to strong investment returns and cash flow. Last year's returns are estimated at 20 per cent on average.

The proportion of pension funds invested in Irish equities during the period fell to 20.6 per cent of total assets compared with 25.9 per cent the previous year.

"This is mainly due to the under-performance of the Irish market compared with its overseas counterparts during 1999. This, combined with the continuing reallocation to eurozone equities by investors, has led to the change," said IAPF's Mr Brid Horan.