Exchequer transfers €4bn into new Future Ireland Fund

Minister for Finance Jack Chambers PIC: Maxwells 

The State has completed its first of a series of transfers into a new wealth fund set up to invest windfall receipts from multinationals in Ireland. 

Announcing the completion on Tuesday, Minister for Finance Jack Chambers confirmed that €4.05bn has been moved into the Future Ireland Fund, representing 0.8% of Gross Domestic Product (GDP).

The fund is one of two that were first announced in Budget 2024 and is aimed at protecting public services for the long term.

For each year from 2024 to 2035, 0.8% of GDP will be invested in the Fund. Approximately €4.1bn will also be transferred from the dissolution of the National Reserve Fund in 2024. According to the Department of Finance, the fund has the capacity to grow to €100bn by 2035.

The transfers builds on those made last month from the National Reserve Fund, with transfers of €2bn to the Infrastructure, Climate and Nature Fund (ICNF) and €4.3bn payment to the Future Ireland Fund.

“This transfer is a milestone event for our new Future Ireland Fund, as well as for our economy and for the future development of our country," said Mr Chambers.

"It demonstrates the progress we are making with both this fund and the Infrastructure, Climate and Nature Fund. These two long term savings funds are a vital element of managing the State’s finances in a prudent and responsible manner over the coming decades. 

"In using the proceeds from volatile windfall tax receipts to help us meet the challenges we know our country will face, rather than using them to fund existing day to day expenditure, we are safeguarding and protecting our future. 

"This transfer of 0.8% of GDP means we will have invested more than €10bn in the two funds by the end of the year, with that figure expected to rise to €16bn by the end of 2025."

Frank O'Connor, chief executive of the National Treasury Management Agency (NTMA) confirmed that there is now €8.4bn in the Future Ireland Fund, with €2bn now in the Infrastructure, Climate and Nature Fund.

"Under the interim investment strategies for each fund, the NTMA is initially investing this money in a low-risk, high-credit quality portfolio of sovereign and quasi-sovereign bonds, with the aim of generating stable and reliable returns with minimal risk," Mr O'Connor continued.

"We are currently designing appropriate long-term strategies for each fund and putting in place the necessary people, skills and supporting infrastructure to manage the funds for the long term”.