Announcing a new partnership with the municipal sovereign wealth fund of Niterói, Brazil

Press Release

New York, NY, September 24, 2021 — The Jain Family Institute announced today a partnership with the Municipal Treasury of Niterói, Brazil. A city of more than 515,000 residents located adjacent to Rio de Janeiro, Niterói has established a pathbreaking sovereign wealth fund, the Fundo de Equalização da Receita (FER, or Budget Stabilization Fund). Working in collaboration with researchers at Niterói’s Federal Fluminense University (UFF) and the Euclides da Cunha Foundation, JFI staff and fellows will collaborate with the Niterói Treasury to develop tools and analysis in support of the FER.

An intergenerational savings and budget stabilization fund, the FER was launched in February of 2019 amid an influx of royalties from oil production in the pre-salt layer of the Santos Basin in southeastern Brazil. Capitalized from the city’s “special participation” royalty stream, the FER seeks to convert a natural resource windfall into a foundation for inclusive economic development. The fund has a current total value of more than 207 million Brazilian reais (approximately 35 million USD) and is projected to have 3.1 billion Brazilian reais (582 million USD) under management by 2040.

The partnership between JFI, UFF, and the Niterói Treasury will contribute to the management of the FER through the joint development of tools and resources, including stochastic modeling software for portfolio analysis and risk management. It will also serve as the impetus for a new forum of Brazilian sovereign wealth funds. Housed at UFF and advised by JFI, this forum will serve as a center of research and exchange for subnational royalty funds in Brazil.

Read the full press release here.

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