Investment Strategy

The Board of Governors is responsible for setting the Investment Strategy of the Fund.
The Investment Strategy of the Fund, as articulated and approved by the Board of Governors in consultation with government, is under-pinned by four main objectives which constitute the Strategic Objectives of the Fund:  

  • To deliver sustainable real positive returns and preservation of capital over the long term by managing assets held under commercial principles.
  • To act with integrity and professionalism at all times by adhering to the values of legality, accountability, transparency and performance.
  • To follow best international practices of other sovereign wealth funds under the Santiago Principles promoting excellence in all that it does.
  • To support development and social initiatives of national importance for the benefit of the community across present and future generations.

In so doing, the NDSF will:

  • Seek to balance short-term economic policy goals with long-term maximisation of returns for the benefit of public policies.
  • Utilise funds for the purpose of improving the economy’s potential for future growth, creating higher future revenue streams while supporting economic development in a sustainable manner.
  • Ensure its investment policy is consistent with the strategic purposes and defined objectives in the founding regulations.
  • Prioritise between the different social and development strategic purposes of the Fund.
  • Maintain the highest standards of governance and accountability at all times.

On the other hand, the NDSF will seek not to:

  • Undertake or support measures and initiatives that trigger a long-term expenditure commitment on the Public Sector.
  • Be a rainy-day fund but will seek to employ funds in a budget-neutral manner to further economic and social objectives.
  • Commit funds in any one year that amount to more than the Fund’s expected revenue for the year.
  • Undertake or support measures or initiatives for which funding is available from other sources e.g. National Budget or EU Funding.

The Investment Policy and Risk Management Framework of the Fund have been designed in a way to allow the Fund to achieve the social and economic objectives laid down in the founding regulations whilst at the same time investing on a commercial basis in a manner to support those objectives. This is a model that is generally used by Sovereign Wealth Funds. This model ensures that a second source of income is created for the Fund from the returns made on the investments. 

For this purpose, the Fund has allocated three main portfolios, namely the Discretionary Portfolio, the Directed Portfolio and the Unallocated Portfolio.