Ireland to propose creation of sovereign wealth fund
Government forecasts surplus will reach €10bn this year and more than €16bn in 2024
Ireland plans to set up a sovereign wealth fund next year, modelled on successful ventures in other countries, to channel its bumper budget surpluses into tackling long-term cost pressures such as pensions and infrastructure spending.
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1 |
| GIC / TH / CPF / Monetary Authority Singapore | 1,950 | Non-commodity |
2 |
| SAFE / CADF / CIC / NSSF | 1,744 | Non-commodity |
3 |
| Bpifrance/Caisse des dépôts et consignations | 1,670 | Non-commodity |
4 |
| GPF | 1,388 | Oil & Gas |
5 |
| ADIA / EIA /MIC /Dubai Inc. /Sharjah Assets Management / Ras Al Khaimah Investment Authority / Ajman Holding / Fujairah Holding | 1,363 | Oil & Gas |
6 |
| PIF | 1,000 | Oil & Gas |
7 |
| NPS / KIC | 880 | Non-commodity |
8 |
| KIA, GIC, Wafra | 712 | Oil & Gas |
9 |
| Exchange Fund / HKMA investment portfolio | 500 | Non-commodity |
10 |
| QIA | 445 | Oil & Gas |
Yes, exactly so.I agree with setting this fund up but I believe its investment strategy should be outside of political influence. For example don't want the green party or others hijacking the fund for their own special interests like giant solar farms or bus connects etc and still classifying that as the country wealth fund.
The wealth fund should be managed as a broad spectrum global fund and outside of political influences thereby protecting it from fad investments and allowing it it to grow like a Vanguard global etf without political or societal biases
You have highlighted genuine risks, but it’s not going to happen. For example, the National Pensions Reserve Fund had both a Discretionary Portfolio and a Directed Portfolio. The Discretionary Portfolio was controlled by the NTMA and the Directed by the Minister for Finance. The Directed portfolio was used in the financial crisis to support public policy objectives (e.g. buy the shares of Irish banks). I don’t think you can get out of this, and have to recognize that there are times of crisis where a Government needs to direct state assets for public policy objectives.I agree with setting this fund up but I believe its investment strategy should be outside of political influence. For example don't want the green party or others hijacking the fund for their own special interests like giant solar farms or bus connects etc and still classifying that as the country wealth fund.
The wealth fund should be managed as a broad spectrum global fund and outside of political influences thereby protecting it from fad investments and allowing it it to grow like a Vanguard global etf without political or societal biases
That's exactly what I'm talking about, where the funds are invested should be outside political control and based solely on stable returns for the future with investments similar to what a global equity fund or vanguard etf would invest. If you exclude fossil fuels we'll then you are giving up investments that go up in inflationary environments like now and exposing the fund to all the falling investments like bonds and tech during rising inflation. Ethics could compromise the government's ability to pay pensions in the futureFor example, we have seen recently the Dáil Committee for Social Protection recommend that the new auto-enrolment pension fund (i.e. taxpayers long-tern savings) should not be invested in either the fossil fuels or arms industries
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