Written answers
Thursday, 23 January 2014
Department of Finance
Ireland Strategic Investment Fund Management
Michelle Mulherin (Mayo, Fine Gael)
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41. To ask the Minister for Finance the status of the Ireland Strategic Investment Fund; the amount it has to invest for this year and each of the following four years; the amount it has invested to date; and if he will make a statement on the matter. [3379/14]
Michelle Mulherin (Mayo, Fine Gael)
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43. To ask the Minister for Finance where has the Ireland Strategic Investment Fund invested money; and if he will make a statement on the matter. [3381/14]
Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 41 and 43 together.
The National Pensions Reserve Fund (NPRF) was valued at €15.6 billion at 30 September 2013. The directed portfolio (public policy investments in Allied Irish Banks and Bank of Ireland made at the direction of the Minister for Finance) was valued at €9.0 billion and the discretionary portfolio (the investment of which remains the responsibility of the NPRF Commission) was valued at €6.6 billion.
The asset allocation of the discretionary portfolio at 30 September 2013 is set out below:
| Asset Class | € m | % of Discretionary Portfolio |
|---|---|---|
| Large cap equity | 1,245 | 19.0 |
| Small cap equity | 247 | 3.8 |
| Emerging markets equity | 475 | 7.2 |
| Quoted Equity | 1,967 | 30.0 |
| Eurozone government bonds | 160 | 2.4 |
| Eurozone inflation linked bonds | 121 | 1.8 |
| Eurozone corporate bonds | 389 | 5.9 |
| Cash | 1,803 | 27.5 |
| Financial Assets | 2,473 | 37.7 |
| Private Equity | 716 | 10.9 |
| Property | 402 | 6.1 |
| Commodities | 305 | 4.7 |
| Infrastructure | 434 | 6.6 |
| Absolute return funds | 248 | 3.8 |
| Alternative Assets | 2,105 | 32.1 |
| Value of Equity Options | 8 | 0.1 |
| Total Discretionary Portfolio | 6,553 | 100 |
As recently announced, the Government has decided to reorient the NPRF into the Ireland Strategic Investment Fund (ISIF), which will allow the resources of the NPRF to be deployed towards productive investment in the Irish economy. It is intended that the impact of ISIF investments is maximised by attracting private sector co-investment.
In anticipation of the establishment of the ISIF, the NPRF Commission has made a number of investment commitments in Ireland, including a substantial number of co-investments, while remaining within its current investment mandate under the NPRF legislation. A detailed table of these NPRF commitments to investment in Ireland as at 30 September 2013 is set out below:
| Investment | NPRF Commitment Capital (€m) | 3rd Party Capital (€m) | Total project size |
|---|---|---|---|
| Innovation Fund Ireland | 125 | 125 | 250 |
| Local Venture Capital Funds | 69 | 320 | 389 |
| Irish Corporate Bonds | 79 | - | 79 |
| Irish Forestry | 36 | 187 | 223 |
| Irish Infrastructure Fund | 250 | 66 | 316 |
| SME Equity Fund Better Capital | 50 | 50 | 100 |
| SME Equity Fund Cardinal Carlyle | 125 | 100 | 225 |
| SME Credit Fund BlueBay | 200 | 250 | 450 |
| Irish Water | 250 | - | 250 |
| Total Committed | 1,182 | 1,030 | 2,212 |
| Expected future commitments of NPRF | 81 | 368 | 449 |
| Total Commitments | 1,263 | 1,398 | 2,661 |
In addition to the above table the National Pensions Reserve Fund has provided a stand-by credit facility for the N11 and Schools Bundles 3 Public-Private Partnership projects.
An update on the performance of the NPRF is currently being prepared and should be available shortly.
Legislation to establish the ISIF is being prepared and I expect it to be published in the first quarter of this year.
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