The Stabilisation Fund (SF) is the smallest of the three NSIA pools of capital, with a 20% allocation of Funds under Management. The purpose of the SF is to act as a buffer against short-term macro-economic instability associated with considerable government revenues derived from hydrocarbon exports.
The SF has a short time horizon and a low returns target. The asset allocation is split between Hedge Assets and Growth Assets. Investments are made conservatively with a focus on liquidity given the unpredictable nature of the fund cash calls. Given these considerations, the asset allocation below was set.
The FGF has a long investment time horizon of greater than 20 years, effectively spanning multiple economic and market cycles. This, coupled with the Fund's payout requirements, allows management to gain exposure to certain asset classes that are less liquid and can therefore attain greater risk-adjusted returns.