NTMA publishes long-term investment strategies for Future Ireland Funds
9 January 2026 - The National Treasury Management Agency (NTMA), following consultation with the Tánaiste and Minister for Finance; and the Minister for Public Expenditure, Infrastructure, Public Service Reform and Digitalisation; has today published the long-term investment strategies for the Future Ireland Fund (FIF) and the Infrastructure, Climate and Nature Fund (ICNF).
The two funds, collectively known as the Future Ireland Funds, have received Exchequer contributions to date of over €16bn, with approximately €12.5bn in the FIF and approximately €4bn in the ICNF.
FIF - 2041
The purpose of the FIF, the larger of the two funds, is to serve as a long-term investment fund that will help deal with future expenditure pressures from 2041, which may include ageing, climate, deglobalisation, digitalisation and other fiscal and economic challenges.
ICNF
The purpose of the ICNF is to have a liquid countercyclical fund available to support State expenditure in the event of future economic shocks, and expenditure from 2026-2030 on designated environmental projects.
Until now, each fund has been managed under an interim investment strategy that was approved by the NTMA in consultation with the relevant Ministers, pending the finalisation of the long-term strategy for each fund.
The Tánaiste and Minister for Finance, Simon Harris TD, said:
“I welcome the publication of the long-term investment strategies for the Future Ireland Fund and the Infrastructure, Climate and Nature Fund.
These funds are a key element of the Government’s fiscal risk management strategy and have received transfers of over €16bn to date. It is also intended to resource the funds in 2026.
The agreement of these strategies is an important step, allowing the NTMA to invest these funds and generate a return, which will aid in combatting future known and unknown challenges we are likely to face”.
The Chief Executive of the NTMA, Frank O’Connor, said:
“The publication of long-term investment strategies is an important milestone for the Future Ireland Funds.
These strategies offer a framework for how the funds entrusted to us will be invested, taking account of the specific characteristics and purposes of each fund. They also set clear benchmarks against which our investment performance can be measured over time.
The strategies are also designed to meet each fund’s respective legislative objectives over the long term, including through periods of economic challenge that will inevitably arise, positioning the Future Ireland Fund to support State expenditure from 2041 onwards”.
The Director of the NTMA’s Future Ireland Funds unit, Rebekah Brady, said:
“The long-term investment strategies for each fund reflect the different investment time horizons, different anticipated withdrawals and different risk profiles that apply to each fund.
We believe these strategies achieve the right balance in terms of pursuing a level of risk-adjusted return that is appropriate to each fund.
Although we anticipate market volatility and expect the funds to encounter periods of negative returns over time, the strategies are designed to achieve the overall objectives of each fund over the long term”.
Key elements of FIF long-term investment strategy
For the FIF, the NTMA has designed an investment strategy with a long-term investment horizon in mind and with the capacity to navigate periods of volatility in investment markets, potentially including periods of negative returns and marked declines in asset values.
This strategy is designed to achieve the FIF’s investment objective over the long term.
Benchmark:
- Equity (80% Weight) - All-Country World Paris-Aligned Total Return Index (75% Euro Hedged excluding Emerging Markets)
- Fixed Income (20% Weight) - Global Aggregate Bond Total Return Index (100% Euro Hedged).
Geographical remit:
- Global
Over time, the Fund will seek additional diversification through a long-term asset allocation comprising:
- 70% publicly quoted equities
- 10% publicly quoted fixed income (e.g. bonds)
- 10% real assets (e.g. real estate and infrastructure)
- 5% private equity investments
- 5% private credit investments
This approach is designed to improve portfolio efficiency, manage risk, and enhance expected returns.
Key elements of ICNF long-term investment strategy
The ICNF strategy is based on its investment objective of preserving capital for possible outflows and securing the optimal total financial return having regard to risk, with the aim of providing liquidity to the State during periods of economic or fiscal deterioration and funding for designated environmental projects.
Benchmark:
- Fixed Income (100% Weight) - 1-3 Year Global Aggregate Bond Total Return Index (100% Euro Hedged).
Geographical remit:
- Global
Over time, the Fund will seek additional diversification through a long-term asset allocation comprising:
- 90% public low-risk debt and cash
- 10% public higher-risk debt
This approach is designed to improve portfolio efficiency, manage risk, and enhance expected returns.
The strategies are available at
https://www.ntma.ie/business-areas/future-ireland-funds/future-ireland-fund
https://www.ntma.ie/business-areas/future-ireland-funds/infrastructure-climate-and-nature-fund