Mozambique's Sovereign Fund (FSM) closed June with a market value of €102.9 million, after recording returns of €827,000 in the second quarter — a 0.41% return — according to data published by the Bank of Mozambique (BdM), which manages the fund.
According to the Quarterly Investment Report, the FSM earned €827,000 between April and June, bringing cumulative gains since the start of the year to approximately €1.75 million.
At the end of June, the fund's market value stood at €102.9 million, of which €100.9 million represented capital derived from natural gas revenues and €1.93 million corresponded to net income accumulated since the fund's establishment.
That figure compares with the €100.9 million transferred by the government for the fund's initial capitalisation, through a first injection of €95.7 million in December 2025 and a second transfer of €5.4 million in January of this year.
The second quarter marked a decisive step in the FSM's operationalisation, with the beginning of implementation of its long-term investment strategy following approval of the Investment Master Plan by the Ministry of Finance.
At the reporting date, the FSM's portfolio was divided between a US dollar-denominated component equivalent to 69.99% of the total, or €72 million, and a euro-denominated portfolio accounting for 30.01%, or approximately €30.9 million.
The BdM, acting as fund manager since last December, noted that returns for the period were driven primarily by interest generated from overnight bank deposits and sovereign bonds.
The fund's geographical exposure was concentrated in the United States, reflecting the weight of the dollar-denominated portfolio, while the European component was distributed across several eurozone countries, including Germany, Finland, Austria, France, and the Netherlands.
The report adds that the FSM complied with the principal risk limits defined in its investment policy, including credit quality requirements and currency allocation thresholds.
The Investment Master Plan stipulates that 70% of the fund's assets be managed against a US Treasury bond index, with the remaining 30% benchmarked against a eurozone sovereign debt index. The plan prohibits investments in Mozambican companies, assets linked to the domestic economy, or the oil and gas sector.
Established under Law No. 1/2024, the Mozambique Sovereign Fund is financed primarily by revenues from natural gas extraction and aims to support economic and social development, accumulate savings for future generations, and contribute to the stabilisation of the state budget.
Legislation passed by parliament stipulates that 40% of annual natural gas production revenues be channelled into the FSM. The government projects that those revenues could reach approximately €5.2 billion per year by the 2040s.
Source: Diário Económico
Original article: https://www.diarioeconomico.co.mz/2026/08/18/economia/financas/fundo-soberano-gerou-mais-de-800-mil-euros-em-rendimentos-no-segundo-trimestre/
