Dáil Éireann Debate, Thursday - 14 December 2017
87. Deputy Michael McGrath asked the Minister for Finance the annual return from ISIF in each of the years since its creation including 2017; the annual return from the global portfolio, domestic portfolio and directed portfolio respectively in each of the years; and if he will make a statement on the matter. [53746/17]
View answerThe NTMA have supplied the information requested by the Deputy in the form of the following table:
|
|
Directed |
Total Discretionary |
Irish |
Global |
|
2015* |
16.6% |
1.5% |
12.3% |
0.1% |
|
2016 |
-7.9% |
2.9% |
6.5% |
2.2% |
|
YTD Sep 2017 |
14.7% |
3.0% |
3.4% |
2.9% |
|
Annualised since inception |
8.0% |
2.7% |
7.9% |
1.9% |
|
*Inception 21 Dec 2014 to end 2015 |
|
|
|
|
Notes:
The Discretionary Portfolio seeks to generate a return, over the long term, in excess of the cost of Irish Government debt and has set a performance objective of +4% per annum. Over the limited time since inception, the annualised return of the Discretionary Portfolio has slightly trailed its target return. This is in line with expectations during the deployment phase of the Fund.
The Discretionary Portfolio contains a number of elements (treasury management, currency management etc.) that are shared between the Global and Irish sub-portfolio. The Global and Irish sub-portfolio components of the total Discretionary Portfolio return are therefore approximate.
The significant return generated in the first two years of the Irish portfolio was driven by some mature legacy Irish assets transferred from the ISIF’s predecessor, the National Pensions Reserve Fund (NPRF).
During 2015, the NTMA transitioned the legacy assets from the NPRF to the ISIF, and the Global Portfolio was managed on an extremely prudent basis whilst the NTMA restructured the assets to reflect the Fund’s new mandate and investment horizon.
