Future Generations Fund
The purpose of the Future Generations Fund (FGF) is to preserve and grow the value of assets transferred into it – by investing in a diversified portfolio of appropriate growth investments – in order to provide future generations of Nigerians with a solid savings base for such a time as the country’s hydrocarbon reserves are depleted.
The FGF is a long-term investor and has an investment horizon of above 20 years, so it is expected to weather multiple economic and market cycles. Diversification is used as a key risk management tool in achieving the investment objectives and mitigating the effects of volatility and uncertainty on the Fund’s investment.
The Fund has a multi-asset strategy and investments range from traditional assets, such as equities, to alternative assets including hedge funds and private equity. The Board Investment Committee approved a strategy that provides guidelines for the Fund’s investments, in line with its risk and return objectives.
The asset allocation is based on long-term risk and return objectives, with due consideration to volatility, and is diversified across various asset classes. This ensures that risk is mitigated.
Due to the Fund’s long-term horizon, the asset allocation is skewed to growth assets which account for 77.5% of the allocation. The rest is apportioned to inflation and deflation hedges (22.5%).
Future Generations Fund
CUrrent Allocation & Size
40% / USD 1.6 Billion
Expected Avg. Annualized Returns
US CPI + 400 BPS
Strategic Asset Allocation
Investment Horizon
Long Term >20 years
2025 PERFORMANCE
The FGF delivered a return of 15.44%, outperforming its policy target of US CPI + 4%, which returned 7.05%, by 839 basis points.
Mandate / Recent Investments
- Public Equity is split 67% Developed markets and 33% Emerging Markets
- Private Equity Commitment is split roughly 25% secondary and 75% primary interest.
- Absolute returns: Three Hedge fund strategies and two bespoke fund of funds mandates.