The Irish Association of Pension Funds (IAPF) has launched a consultation on plans for an Ireland-focused long-term investment fund aimed at mobilising pension and other long-duration capital into a diversified portfolio of productive assets.
According to the consultation paper, the proposed fund would be a return-led investment proposition, with the primary objective of generating long-term real returns while maintaining resilience to inflation as a core portfolio characteristic.
IAPF said Ireland would be the “natural originating universe” for investments, but capital should be allocated on a “commercially disciplined basis”, with broader European exposure where appropriate.
The consultation sets out an illustrative strategic asset allocation designed to balance long-term real returns, pension suitability, inflation resilience and exposure to productive assets.
The proposed allocation comprises 40% equities, 35% real assets, 20% debt, and 5% liquidity and inflation-linked bonds. IAPF stressed that this is a consultation framework rather than a final investment strategy.
The association’s preferred vehicle is a European Long-Term Investment Fund (ELTIF), which it said could accommodate different investor channels and share classes while reflecting the long-duration and partially illiquid nature of the proposed portfolio.
Although the structure would support regular, potentially daily, net asset value (NAV) calculations, IAPF noted that it would not offer daily liquidity.
The consultation seeks feedback on the proposed investment objective, strategic asset allocation, the suitability of an ELTIF structure, liquidity terms, governance arrangements and engagement.
According to the consultation paper, the aim is to support industry discussion, identify implementation challenges at an early stage, and assess whether the concept can be developed into a structure that is “investable, scalable and institutionally robust”.
IAPF said the “central question” is not whether the proposition is attractive, but whether it can be made “sufficiently practical, credible and well-structured” for long-duration pension capital.
