NTMA invests initial €6 . 3bn in two new sovereign …

NTMA invests initial €6 . 3bn in two new sovereign wealth funds

The National Treasury Management Agency (NTMA) has allocated an initial €6.3 billion to two new sovereign wealth funds, Future Ireland Fund (FIF) and Infrastructure, Climate and Nature Fund (ICNF), for low-risk investments in government bonds and cash. The funds aim to invest windfall tax revenues, with the FIF projected to reach €100 billion by 2035 for healthcare and pension costs, and the ICNF expected to grow to €14 billion by the end of the decade for infrastructure and climate action projects. The NTMA s interim investment strategy, outlined in recent publications, permits investments in government or government-guaranteed bonds issued by euro zone governments, quasi-sovereign debt, or cash. The agency is currently appointing a head for the funds and finalizing the investment committee responsible for a long-term investment strategy. The NTMA will align the investment strategy for both funds with existing environmental, social, and governance (ESG) parameters set for the Ireland Strategic Investment Fund (ISIF). This includes excluding investments in companies involved in nuclear weapons manufacture and testing, high-carbon companies, and tobacco groups. On Tuesday, €2 billion was transferred from the National Reserve Fund to the ICNF, and the following day, €4.3 billion was moved to the FIF. The NTMA plans to make further announcements regarding the funds investment strategy in due course. The establishment of these funds reflects the government s commitment to managing windfall tax revenues and ensuring long-term investment in healthcare, pensions, infrastructure, and climate action projects. The NTMA s responsible investment approach aligns with ESG parameters, excluding investments in controversial sectors.

Source: irishtimes.com
Published on 2024-09-21

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