State pulls €3m worth of investment from Israeli firms
THE Government has pulled millions of euros of investment from several Israeli companies.
The National Treasury Management Agency (NTMA) confirmed it had made the decision to divest almost €3million from its global equity portfolio in the Ireland Strategic Investment Fund (ISIF).
The divestment decision relates to shareholdings with a total value of €2.95million 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.
Finance Minister 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.’
He added: ‘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 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.
The value of the ISIF’s portfolio at the end of 2022 was €15billion.
Welcoming the latest decision, Labour leader Ivana Bacik said: ‘It is heartening to see the NTMA taking steps to divest from investments in companies operating in the occupied territories, but this is just the beginning. The scale of destruction witnessed by the people of Gaza is nothing short of horrific. The case for an immediate ceasefire in Gaza becomes even more compelling each day, as the death toll mounts. We are bearing witness to awful devastation, unleashed by the Israeli government upon this civilian population.’
She added: ‘While we commend the Government’s contribution to humanitarian efforts and ongoing support for UNRWA [the UN Relief and Works Agency for Palestine Refugees in the Near East], more must be done to alleviate the suffering of the Palestinian people.’