Ireland’s sovereign fund takes a galvanizing approach to Covid
Different sovereign funds have approached Covid in different ways – drawdowns, contrarian investments, flights to safety and backstopping local raisings – but Ireland’s has perhaps been the most clearly defined.
In May, the Ireland Strategic Investment Fund (ISIF) created a sub-portfolio worth €2 billion – the Pandemic Stabilization and Recovery Fund. While not legally a separate fund, it was established within the ISIF under existing legislation, it is still the only instance of a sovereign wealth vehicle creating a separate pool mandated with Covid recovery.
One reason for this was because of an evolution ISIF has already gone through since its foundation in 2014 and, in fact, before that.