National Welfare Fund

Russian Federation US$ 79.9 Billion Origin: Oil

Profile Directories

Sovereign Wealth Funds

Public Funds

Established: 2008
Transparency Rating: 5
View Sovereign Fund Transaction Data
Related Articles
Firm Investment Style: Mixed
Entity Structure: Fund
Population Est.: 143.3 million – 2012

Fund Details

Strategy & Objectives

SWF Asset Allocation

Key Executives and People

Main Office
Ministry of Finance of the Russian Federation
109097, Moscow, Ilinka Str. 9
Russia
Tel: +7 (495) 987-93-72

Governance
The fund is managed by the Russian Ministry of Finance.

Summary
With just US$ 32 billion starting out, the fund relies on the price of oil. The main purpose of the fund is for the guarantee of the voluntary pensions of the citizens. In addition, to help balance the budget of the Pension Fund for the Russian Federation.

The fund is managed by the Russian Ministry of Finance. The fund has the ability to lend money to Russian banks. Furthermore the Fund is to serve as an important tool for absorbing excessive liquidity, reducing inflationary pressure and insulating the economy from volatility of oil & gas export earnings. This fund will be allowed to invest in riskier assets, such as corporate bonds and possibly equities.

Background on Russia’s National Welfare Fund
In 2004, Russian Federal Law No.184 created the Oil Stabilisation Fund to accumulate revenue from oil production and exports. In February 2008, the Oil Stabilisation Fund was split into two funds, one section managing official reserves, while the second part becomes the official sovereign wealth fund, National Welfare Fund.

Russia