The Broadcasting Authority of Ireland (BAI) is seeking investment advice on the €36million cash stack it has built from monies received from the television licence.
The money — the excess amount from a special broadcast fund used to provide grants for TV and radio productions — is currently almost entirely invested in NTMA government bonds.
The BAI’s Sound & Vision Schemes, which have awarded Irish TV and radio production companies €28 million in grants to date, are funded with 7 per cent of annual net royalty income.
BAI will be awarded a new three-year contract to provide investment and commercial advice on the administration and investment of the funds.
She aims to “review financial institutions’ product offerings to ensure BAI is getting the optimal return on its investments.”
The value of the fund as of September 30 was €35.63 million, with 99 percent invested in NTMA government bonds.
“In 2019 and 2020, financial institutions started to introduce negative interest rates and there were also announcements to exit the Irish banking market,” said a BAI spokeswoman. “In this regard, and on the advice of its financial advisors, in June 2020, the BAI’s Finance, Audit and Risk Committee approved a proposal that the BAI purchase Treasury Notes from the NTMA due to their low risk and more favorable interest rates.”
https://www.independent.ie/business/irish/sound-and-vision-bai-seeks-investment-advice-for-36m-tv-and-radio-production-grant-cash-pile-42192969.html Sound & Vision: BAI seeks investment advice on €36m grants for television and radio productions