The Fund’s Discretionary Portfolio is currently split between the Global Portfolio and the Irish Portfolio. The Global Portfolio will gradually transition into an Irish focussed portfolio over the coming years as investment opportunities that meet the ISIF’s mandate are executed and drawn down. The period between now and when the Fund is fully invested in Irish investments is the transition phase, which is expected to take up to 5 years, i.e. to 2020. The Global Portfolio Transition Strategy is the Fund’s strategy for this Transition Phase.
The Fund needs to seek to achieve a return in excess of the cost of Government debt. We have targeted in our investment strategy earning an annualised return of ~4%. A portion of the Fund’s assets will still need to be invested globally during the transition phase in order to contribute towards achieving this target return.
During the second half of 2015 the Fund tendered for investment management firms to help manage the multi-year transition from a globally-invested portfolio to one that is focused on Ireland. The Fund expects to announce managers in the second quarter of 2016.