The National Pension Reserve Fund is in talks with the government about divesting from certain munitions manufacturing companies.

The fund's latest reported holdings in such companies, using the ethical investment lists compiled by the Norwegian Ministry of Finance as a benchmark, amounted to €28m or 0.13% of the €21bn fund.

Adrian O'Donovan, senior manager, NPRF, told Global Pensions: "The country has been working internationally to outlaw the use of cluster bombs so this is a continuation of that.

"We are discussing with the ministry of finance how to remove these companies from the fund's investment portfolio, but details are yet to be finalised."

Colm O'Gorman, executive director, Amnesty International, Irish Section, welcomed the move: "Under Section 19 of the National Pensions Reserve Fund Act 2000, the only criteria for choosing where to invest our money is to ensure the optimal return on the investment.

More at; Ethical investing hits Ireland