INVESTMENTS held by the Courts Service on behalf of minors and wards of court grew by €20m last year as it benefited from shifting more of its assets to cash.

The total funds grew to €1.05bn from €1.03bn a year earlier, the Courts Service said in its annual report last week; €18m of the gain came from investment returns. The previous year its investments lost €75m in value.

The Courts Service said it has a very conservative investment policy which has helped maintain the funds' value despite difficult financial markets. About 77% of its assets are held in cash and bonds with 23% in equities. The funds are managed by Bank of Ireland's investment unit, BIAM.

Of the €1.05bn in assets, €820m was managed by BIAM, down from €952m a year earlier, while its cash on deposit rose to €195m from €39m, the report shows.

"The year could best be described as a year of two halves, with very significant turbulence on financial markets having a negative impact on court funds in the first six months. However, in the second half, court funds experienced significant positive performance as some stability and growth returned to financial markets," High Court President Nicholas Kearns, who heads its investment committee, said in the report.

The fund paid out €1m in fees to the investment managers, down from €1.13m.