NTMA names firms that will manage State's long-term funds

The Future Ireland Fund will help deal with future expenditure pressures from 2041 while the Infrastructure, Climate and Nature Fund will support State expenditure in the event of future economic shocks, as well as expenditure from 2026 to 2030 on designated environmental projects

The Future Ireland Fund, the larger and long-term fund, has received Exchequer contributions of approximately €13.6bn to date, while the Infrastructure, Climate, and Nature Fund has received approximately €4.5bn.

The National Treasury Management Agency (NTMA) has announced the four firms who will manage the country’s long-term investment funds — the Future Ireland Fund (FIF) and Infrastructure, Climate and Nature Fund (ICNF).

The firms selected include; French asset management firm Amundi; US firms Blackrock and State Street; as well as Swiss investment bank UBS. The NTMA said these firms have been selected to provide passive investment management services to track major market indices in line with each fund’s benchmark.

The NTMA is the controller and manager of both funds and the selection of these firms follows the publication last month of the long-term investment strategies for both funds.

The FIF will serve as a long-term investment fund that will help deal with future expenditure pressures from 2041 while the ICNF is a countercyclical fund available to support State expenditure in the event of future economic shocks, as well as expenditure from 2026 to 2030 on designated environmental projects.

The FIF, the larger and long-term fund, has received Exchequer contributions of approximately €13.6bn to date, while the ICNF has received approximately €4.5bn.

The NTMA has said it has commenced transitioning both funds from the interim investment strategies to their new long-term investment strategies.

Director of the NTMA’s Future Ireland Funds unit, Rebekah Brady, said these managers will work on behalf of the Future Ireland Funds to “deliver our investment exposure as both funds gradually move into markets".

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“This is an important mechanism for ensuring the funds are invested in a prudent and effective manner to deliver on their legislative mandates.” 

The NTMA said it expects to conduct further public procurement processes in the future to select investment managers for other asset classes and investment mandates as required.

Over time the Future Ireland Fund will pursue additional diversification in line with its 2041 investment horizon and its investment strategy.

Initially the FIF will be invested 80% in equities and 20% in fixed income through bond investments. Over time, the equity proportion will be reduced down 70% while bonds will be reduced down to 20% with the remaining investment split between real estate and infrastructure investments, private equity investments, and private credit investments.

The ICNF on the other hand will be 100% weighted towards bonds initially but over time will diversity allowing for up to 10% to be invested in public higher-risk debt.