Government pulls multimillion-euro investment in six Israeli companies

By Cillian Sherlock, PA

The Government has pulled millions of euros of investment from several Israeli companies.

The Irish National Treasury Management Agency (NTMA) confirmed that it had made the decision to divest almost €3 million from its global equity portfolio in the Ireland Strategic Investment Fund (ISIF).

The divestment decision relates to shareholdings with a total value of €2.95 million in the following six companies: Bank Hapoalim BM; Bank Leumi-le Israel BM; Israel Discount Bank; Mizrahi Tefahot Bank Ltd; First International Bank and Rami Levi CN Stores.

Minister for Finance Michael McGrath said it was the “correct decision”.

He said: “ISIF has determined that the risk profile of these investments is no longer within its investment parameters and that the commercial objectives of these investments can be achieved via other investments.

“The decision will be implemented as soon as possible over the coming weeks.

“I am advised ISIF will keep under review the alignment of relevant investments within its investment parameters and commercial objectives.

“While recognising the independence of ISIF in the management of the investment portfolio, I believe this is the correct investment decision in respect of the assets it manages on behalf of the State.”

The ISIF is managed by the NTMA on behalf of the State and is comprised of discretionary and directed portfolios.

The discretionary portfolio has a “double bottom line” mandate to invest on a commercial basis in a manner designed to support economic activity and employment in Ireland.

The main objective of the global investments within the discretionary portfolio is to provide liquidity for Irish portfolio investments as well as other directed or expected withdrawals and to earn an appropriate risk adjusted return that will assist the ISIF’s performance with a low-risk appetite.

The total value of the ISIF’s portfolio at the end of 2022 was €15 billion of which €5.2 billion was invested in the global portfolio.