FILE _ For illustration purposes only. [File photo: Banco de Mo\u00e7ambique]The Mozambique Sovereign Wealth Fund (FSM) reached a market value of US$144.4 million (\u20ac123.1 million) this month, 31.3% more than it was worth when the central bank took over its management less than a year ago.<\/p>\n
According to the latest investment report, dated 25 September, seen on Tuesday by Lusa, the FSM has reached a market value of US$144,448,736, compared with the US$109,972,546 (\u20ac93.7 million) transferred to set it up on 10 December 2025.<\/p>\n
Data from the Bank of Mozambique, as the fund\u2019s manager, indicate a cumulative increase of around US$34.5 million (\u20ac29.4 million) since the fund was launched to invest part of the country\u2019s natural gas revenues.<\/p>\n
On 25 September alone, the value of the portfolio increased by US$151,710 (\u20ac129,000) and the overall portfolio recorded a daily return of 0.11% over the period analysed, in line with its benchmark index, driven mainly by the US dollar-denominated component, which posted a daily gain of 0.13%, whilst the euro-denominated portfolio rose by 0.04%.<\/p>\n
Despite the overall appreciation since its inception, recent performance continues to be affected by developments in international bond markets, with cumulative losses of 1.08% since the start of September and 0.63% over the quarter.<\/p>\n
The US dollar-denominated portfolio amounted to US$101.2 million (\u20ac86.3 million), equivalent to around 70% of the fund\u2019s assets, whilst the euro-denominated portfolio totalled US$43.2 million (\u20ac36.8 million), or approximately 30% of the assets.<\/p>\n
The figures reflect the implementation of the long-term investment strategy initiated by the Bank of Mozambique during the second quarter of this year, following the approval of the Investment Master Plan by the Ministry of Finance.<\/p>\n
Until then, the funds had been invested primarily in bank deposits, but from the second quarter onwards, the central bank began to transfer the assets into a portfolio based on international sovereign debt denominated in dollars and euros.<\/p>\n
At the end of June, the fund had a market value of US$118.36 million (\u20ac100.8 million), meaning that assets had grown by more than US$26 million (\u20ac22.2 million) over the past three months.<\/p>\n
The Investment Master Plan stipulates that 70% of the assets are to be managed in line with the ICE BofA 0\u20135 Year US Treasury Index, comprising US Treasury bonds, and the remaining 30% in line with the ICE BofA 0\u20133 Year Euro Government Index, which tracks Eurozone sovereign debt.<\/p>\n
The portfolio\u2019s geographical exposure is therefore largely concentrated in the United States, whilst the European component is spread across several Eurozone countries, including Germany, Austria, Finland, France and the Netherlands.<\/p>\n
The investment rules also stipulate that at least 75% of the fund\u2019s assets must remain invested in sovereign bonds included in the benchmark indices and prohibit investment in assets issued by Mozambican companies or directly linked to the domestic economy.<\/p>\n
The regulations also prohibit investments with exposure to the oil and gas sector, despite the fund being financed by revenues from natural gas exploration, and require a minimum credit rating of A- for eligible assets.<\/p>\n
Established by Law No. 1\/2024, the Mozambique Sovereign Wealth Fund aims to support economic and social development, accumulate savings for future generations and contribute to the stabilisation of the state budget.<\/p>\n
The legislation stipulates that 40% of annual revenues from natural gas exploration are to be channelled into the fund, with the Government forecasting that these revenues could reach around US$6 billion (\u20ac5.1 billion) per year in the 2040s.<\/p>\n
Source: Lusa<\/p>\n","protected":false},"excerpt":{"rendered":"FILE _ For illustration purposes only. [File photo: Banco de Mo\u00e7ambique]The Mozambique Sovereign Wealth Fund (FSM) reached a…\n","protected":false},"author":2,"featured_media":616197,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[138,219,111,139,69],"class_list":["post-616196","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-new-zealand","tag-newzealand","tag-nz"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/616196","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=616196"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/616196\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/616197"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=616196"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=616196"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=616196"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}