The establishment of the Strategic Investment Fund (SIF) was announced by the Government in September 2011. Resources from the National Pensions Reserve Fund (NPRF) will be channelled through the SIF towards productive investment on commercial terms in the Irish economy. The SIF will seek matching commercial investment from the private sector in order to maximise the resources of the NPRF. The immediate priority for the Government is to put NewERA on a statutory footing and reorient the NPRF into a Strategic Investment Fund which will make strategic investments to support economic activity and employment in Ireland. Officials of my Department are liaising with the National Treasury Management Agency (NTMA), in preparing the necessary Heads of Bill to achieve this objective. I expect to bring these proposals to Government shortly.
The NPRF continues to work on assembling and developing a pipeline of additional commercial opportunities for the Strategic Investment Fund, which is taking place in parallel with the legislative amendment process. An investment strategy is being developed which will address the sectors and range of assets to be considered for investment.
Within its existing statutory investment policy and in line with the SIF announcement, the NPRF has undertaken a number of investments and initiatives under which NPRF capital will be invested on a commercial basis in Ireland. The NPRF has committed to invest in infrastructure (€250 million), PPP projects (€118 million) and finance for the SME sector (€500 million) and has entered into a collaborative relationship with Silicon Valley Bank. In addition, the Fund has been working closely with NewERA in respect of investment opportunities relating to the commercial semi-state sector.
