Ireland’s €9.2 billion sovereign investment fund has almost doubled its total investment gains in eighteen months.
The Ireland Strategic Investment Fund – which has a mandate to invest on a commercial basis to support economic activity and jobs – generated an investment return of €450 million in the first half of 2021.
It brings to €1 billion the total gains since the start of 2020.
Total investment gains since the Fund was established in early 2015, when it replaced the National Pension Reserve Fund, stood at €2.2 billion at the end of June.
ISIF’s Irish portfolio added €1.4 billion of returns while its Global Portfolio generated over €800 million.
The gain generated in the first six months represented a return of just over 5%.
ISIF – which is managed by the National Treasury Management Agency – completed 10 new investments in the first six months of the year, bringing total commitments in Ireland to €5.2 billion across 151 investments.
The most high profile investment in the period was in the payments company Stripe, which was founded by Irish brothers John and Patrick Collison.
The fund invested €42 million in the global payments company which, alongside the investment, announced that it intended to create more than 1,000 jobs here.
ISIF also announced its intention today to invest €1 billion in climate action projects over the next five years.
The investments are expected to include energy efficiency projects, renewable energy generation and storage as well as better use of resources to reduce Ireland’s carbon emissions.
The fund said the programme would complement its existing investments, which are made in line with what it calls its ‘double bottom line’ mandate to invest on a commercial basis to support economic activity and employment.
“Our planned investment programme reflects the urgency of the climate challenge and the significant opportunities that exist to back Irish businesses and projects that are developing new and more sustainable ways of doing things,” Nick Ashmore, Director of ISIF said.
“ISIF plans to make both direct and fund-based investments aligned with this strategy, partnering with major global investors where appropriate, and will make further announcements over the coming months. We look forward to continuing to invest and be a catalyst for Ireland’s transition to Net Zero,” he added.
ISIF is also responsible for the Pandemic Stabilisation and Recovery Fund (PSRF), a €2 billion fund that was established by the Government in May last year to support companies impacted by the pandemic through investment.
Direct and indirect investments in businesses totaled €613 million across 30 businesses, platforms and projects by the end of June.
In addition, ISIF is working on a pipeline of over €920 million in potential investments from the PSRF.