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| Strategic Investment Funds
FIGURE 10.1
Structure of NTMA and ISIF NTMA
NTMA business divisions
State Claims Agency
NewERA
Discretionary Portfolio
Irish Portfolio
Global Portfolio
ISIF
National Development Finance Agency
National debt management
Directed Portfolio Public policy investments in Allied Irish Banks Plc, Bank of Ireland and loans to the Strategic Banking Corporation of Ireland and Home Building Finance Ireland
Source: World Bank. Note: Dark blue boxes denote the units most relevant to ISIF’s capacity as a strategic investment fund. ISIF = Ireland Strategic Investment Fund; NewERA = New Economy and Recovery Authority; NTMA = National Treasury Management Agency.
commercial basis in a manner designed to support economic activity and employment in the State.” The economic impact side of the mandate is based on three criteria against which ISIF evaluates all investment decisions:5 1. Additionality refers to the economic benefits to gross value added (GVA) and gross domestic product (GDP)6 likely to arise from the investment under examination above what would have taken place in any case.7 Elements of economic additionality at the investment level include GVA, employment creation, and qualitative features such as contribution to Ireland’s enabling infrastructure, innovation capacity, and efficiency (for example, through sector consolidation).8 ISIF investments may generate additionality in the medium to long term, through participation in existing or newly established businesses. Social and environmental considerations are specifically not embedded in the additionality test, which focuses on economic impact, but are covered by ISIF’s Sustainability and Responsible Investment Strategy and adherence with the UNPRI and the Santiago Principles (as discussed in the subsection on economic impact and ESG reporting). 2. Displacement refers to instances when an investment’s additionality is reduced at the overall economy level because of a reduction in economic benefits elsewhere in the economy. For example, an investee company that competes with other Irish companies would reduce the investment’s overall impact on GVA of the whole economy. ISIF’s investments seek to avoid displacement.
