Investment Strategy
The Natural Resource Fund (NRF) of Guyana is one of the world’s newest and fastest-growing sovereign wealth funds. Established in 2019, the fund was created in anticipation of Guyana’s transformation into a major oil-producing nation following the discovery of massive petroleum reserves in the Stabroek Block by ExxonMobil and its partners Hess and CNOOC.
The Stabroek Block, located offshore Guyana, contains recoverable resources estimated at over 11 billion barrels of oil equivalent. Production has ramped up rapidly, with multiple floating production, storage, and offloading (FPSO) vessels deployed. The royalties and profit-sharing revenues flowing to the Guyanese government are channeled through the Natural Resource Fund before transfers to the consolidated budget.
The fund’s investment strategy is currently conservative, reflecting its early stage and the need to establish governance and investment frameworks. Assets are primarily held in liquid, low-risk instruments including US Treasury securities and high-quality sovereign bonds. As the fund accumulates assets rapidly, the investment mandate is expected to evolve to include diversified public equities, fixed income across maturities, and eventually alternative investments.
How to Approach
The NRF is managed through the Bank of Guyana and a dedicated Board of Directors. The fund’s early stage means investment management is currently focused on building institutional capacity and establishing governance frameworks. As the fund grows into what could become one of the largest sovereign wealth funds per capita in the world, opportunities for international manager engagement will expand. Managers with experience in sovereign fund establishment, emerging market asset management, and Caribbean economic development may find early engagement opportunities through the Georgetown office.
Frequently Asked Questions
What is the Natural Resource Fund of Guyana?
The Natural Resource Fund was established in 2019 following the commencement of oil production from the massive Stabroek Block offshore Guyana, operated by ExxonMobil. The fund receives royalties and profit-sharing revenues from petroleum production and is designed to stabilize government finances and save wealth for future generations.
How fast is the fund growing?
The fund has grown rapidly since oil production began in 2019, accumulating over $1.5 billion by 2024. With production from the Stabroek Block ramping up to over 1 million barrels per day by 2027, the fund is expected to grow substantially, potentially reaching tens of billions within a decade. Guyana's per-capita oil wealth is among the highest in the world given its small population.
How is the fund invested?
The NRF is managed by the Board of Directors of the Natural Resource Fund with the Bank of Guyana as fiscal agent. The investment strategy is currently conservative, focusing on liquid, low-risk assets. As the fund grows, the investment mandate is expected to expand to include a broader range of asset classes including alternatives.
