What share of total liquefied natural gas (LNG) revenues will be channelled to the Sovereign Wealth Fund of Mozambique?
During the first fifteen years, 40% of revenues will be channelled to the Sovereign Wealth Fund of Mozambique and 60% to the State Budget. From the sixteenth year of FSM operations onwards, the share will shift to 50%.
Who will be responsible for carrying out investments for the Sovereign Wealth Fund of Mozambique?
The Banco de Moçambique, as Operational Manager, is responsible for carrying out investments on behalf of the Sovereign Wealth Fund of Mozambique.
Where will the Sovereign Wealth Fund of Mozambique be invested?
The Fund will be invested in the International Financial Market, based on the Investment Policy approved by the Government.
How is the FSM portfolio invested?
The portfolio is invested in accordance with the Investment Policy approved by the Government and may be managed directly by the Banco de Moçambique, as Operational Manager, or through External Managers.
What is the Investment Policy of the Sovereign Wealth Fund of Mozambique?
The Investment Policy is the set of principles applied to strategic asset allocation, portfolios, benchmarks, expected returns and other matters related to the overall investment framework, consistent with a desired risk profile.
What risks are associated with FSM investments?
The main risks associated with investments include, among others, market risk (fluctuations in asset prices), credit risk (default) and liquidity risk.
How should the performance of the FSM’s investments be assessed?
Performance should be assessed against benchmark indices.
What is the Effective Benchmark?
A standard that reflects the actual composition of the asset portfolio at a given point in time, used to assess the portfolio’s realised performance.
What is the Strategic Benchmark?
A reference used to guide long-term investment strategy, defining how portfolio diversification should be applied across asset classes.
Who is responsible for oversight and control of the Sovereign Wealth Fund of Mozambique?
Under applicable legislation, the FSM is subject to audits by the Administrative Court, internal and external audits, and is additionally supervised by the Oversight Committee.
What mechanism ensures that the public has access to information about the FSM?
All information on the Sovereign Wealth Fund of Mozambique will be made available on the websites of the Ministry of Finance and the Banco de Moçambique.
What is Liquefied Natural Gas (LNG)?
Natural gas that has been converted into liquid form.
