State fund ditches investments in six Israeli companies linked to settlements

The Ireland Strategic Investment Fund (Isif), which is funded by taxpayers, will divest shareholdings with a total value of €2.95m in six Israeli companies: Bank Hapoalim BM, Bank Leumi-le Israel BM, Israel Discount Bank, Mizrahi Tefahot Bank Ltd, First International Bank and Rami Levi CN Stores.

The move from Isif follows political pressure from inside Leinster House, with the divestment set to be implemented in the coming weeks.

Finance Minister Michael McGrath welcomed the news from the National Treasury Management Agency (NTMA), which controls and manages the fund on behalf of the State.

"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," he said.

“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,” Mr McGrath added.

Four of the banks – Mizrahi Tefahot, Bank Hapoalim, Israel Discount Bank and Bank Leumi-Le Israel – featured in a 2020 UN report listing businesses that have ties to illegal Israeli settlements in Palestine.

However, last month, Isif director Nick Ashmore confirmed to an Oireachtas Committee that Isif had direct investments in 11 companies on this UN database which totalled approximately €4.2m at the end of 2023.

“We have 11 directly held positions in companies that are on that list,” he said. “That varies from Israeli businesses to Israeli banks to international companies that are involved in travel booking, such as Airbnb, Booking.com, Expedia, and a few international companies, such as Motorola, Alstom and Altice, which are infrastructural orientated companies.”

“We also have exposure through pooled investments,” he said, adding that the total amount invested, when including pooled investments and segregated direct investments, rises to €13.6m.

According to the most recently published NTMA Annual report, the total value of ISIF’s portfolio at the end of 2022 stood at €15bn.

Around €5.2bn was invested in the fund’s global portfolio.