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Savings and Stabilization Fund (FAE), Colombia

Fondo de Ahorro y Estabilización · Colombia · Latin America and Caribbean · Founded 2012 · Stabilisation fund · Not an IFSWF member

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Focus

Savings and Stabilization Fund (FAE), Colombia: what it invests in

Financial services
Fixed incomeCash and money markets

Geography Global

Scale

Savings and Stabilization Fund (FAE), Colombia: how big it is, and on what basis

USD 4,588.5M
Total assets (balance sheet)As of

In US dollars: about USD 4.59B. Reported in US dollars.

Transparency

Savings and Stabilization Fund (FAE), Colombia: what it publishes

5.5 of 10 Band 3 of 5

Published 3 · Partly 5 · Not published 2

Our 10 item score. It measures what is public, not how well a fund is run.

Trust assetsS4
USD 4,588.5M (31 Dec 2025)
As of
Profit 2025S4
USD 128.3M
As of
Contributions 2025S4
USD 57.2M
As of
Withdrawal triggerS8
20% fall (in royalty income)
As of
2026 withdrawalS7
About COP 2.9T (Decree 288)
As of

At a glance. The FAE is the savings and stabilisation arm of Colombia's General Royalties System, which shares oil, gas and mining royalties with regions. Its trust, run by the Banco de la República in US dollars, held USD 4,588.5 million at end 2025. It saves royalties in good years and pays out when royalty income drops sharply, as first happened in 2026. S5 S4 S7

Key points

  • Assets of USD 4,588.5 million at 31 December 2025, up from USD 4,403.1 million a year earlier. S4
  • 2025 growth came from USD 128.3 million of investment profit and USD 57.2 million of new contributions. S4
  • Money can be drawn only when royalty income falls 20 percent or more in a year, or by 20 percent over successive falls. S8
  • In March 2026 Decree 288 authorised a first withdrawal under the 2020 law of about COP 2.9 trillion. S7
  • Each region's savings are tracked separately in proportion to its royalty share. S3
  • Valued daily in US dollars, with monthly results published by the central bank. S5

Interesting facts

  • In peso terms the fund fell 11.2 percent in 2025 even as its dollar value rose, because the peso strengthened. S4
  • The central bank takes on obligations of means, not results, when managing the trust. S9
  • The Ministry of Finance reported royalty income about 39.9 percent below 2023 when the 2026 withdrawal was approved. S7

Mandate and goals

The FAE saves part of royalty income in strong years and uses it to steady the regional allocations of the royalties system when current income falls sharply. Its investments aim to maximise return as a prudent, diversified investor. S8 S1

  • Stabilise regional royalty allocations when income drops by 20 percent or more. S8
  • Maximise return within risk limits suited to the nature of the money. S1
  • Diversify investments and act as a prudent investor. S1

How it invests

IndustriesFinancial services. Sector agnostic S9
Asset classesFixed income, Cash and money markets S9
StagesPublic markets S9
GeographyGlobal. Held and invested in US dollars abroad S4
Direct / through funds / co-investYes / No / No S9
Ticket sizeNot applicable; the fund holds liquid securities. S9
External managersThe Investment Committee sets criteria for selecting external managers, custodians and advisers S6
Co-investment programmeNone S6

Past investments

The fund has not published a list of investments.

Case studies

First stabilisation withdrawal under the 2020 law S7 S8

  • What: After royalty income fell sharply, the government authorised drawing about COP 2.9 trillion from the FAE for regions.
  • When: March 2026
  • Size: About COP 2.9 trillion
  • Why: The law allows withdrawals when royalty income drops 20 percent or more.
  • Outcome: Decree 288 of 2026 issued after the SGR Rector Commission gave a favourable opinion on 1 March 2026.

Investment process

An Investment Committee chaired by the Finance Minister, with the Mines Minister and the head of the National Planning Department, sets investment policy, limits and risk rules. The central bank governor attends without a vote. S6

CommitteeRole
FAE Investment CommitteeSets policy, limits and manager selection criteria S6
  1. Royalty allocations flow monthly to the trust under the planning department's distribution. S4
  2. The central bank invests them under the committee's policy and values them daily. S5 S9
  3. If royalty income falls 20 percent or more, a withdrawal is calculated by formula. S8
  4. The government authorises the withdrawal by decree after review. S7

How to approach: No external intake route; the central bank runs the trust. S5

Size and returns

  • Headline size: USD 4,588.5M (Total assets (balance sheet), as of 2025-12-31) S4
  • In US dollars: about USD 4.59B. Reported in US dollars.
  • Peso value at year-end rate: COP 17,239,536M (Total assets (balance sheet), as of 2025-12-31) S4
  • Returns: the fund does not publish a return figure.
  • Staff: Run by Banco de la República staff S5
  • Size over time (USD million): 2024 4,403.1, 2025 4,588.5 S4

Leadership

NameTitleSince
Miguel Gómez MartínezMinister of Finance and Public Credit, chair of the Investment Committee S10 S62026-08-07

Governance and transparency

  • Legal basis: Law 2056 of 2020 (articles 113 to 119), Decree 1821 of 2020; trust originally created by Law 1530 of 2012 S1
  • Oversight: SGR financial statements reviewed by the SGR Rector Commission and presented to the Senate S4
  • Auditor: Statements prepared under public accounting rules by the Ministry of Finance S4
  • Not an IFSWF member. S2
  • A trust supervisor attends the Investment Committee without a vote. S6

Transparency score: 5.5 of 10 (band 3 of 5). Our own 10-item rubric; see the methodology page.

  • Published: total assets, governance and mandate documents, regular reporting schedule. S1 S4 S5
  • Partly published: annual return, asset allocation, geographic or sector split, audited financial statements, named leadership. S4 S5 S6
  • Not published: long-term returns, holdings or deal list. S5

History

DateEvent
2012Law 1530 creates the FAE trust. S1
2020-12Law 2056 and Decree 1821 reset the rules. S1
2025-12-31Assets reach USD 4,588.5M. S4
2026-03Decree 288 authorises a withdrawal of about COP 2.9 trillion. S7
2026-08-07Miguel Gómez Martínez becomes Finance Minister. S10

For family offices

The FAE is a liquid stabilisation fund with no private markets or co-investment activity. It matters to families mainly as a signal of Colombia's fiscal buffers for regions. S5 S8

Reports

Common questions

Who manages the FAE?

Banco de la República runs the trust; an Investment Committee chaired by the Finance Minister sets policy. S5 S6

How large is it?

USD 4,588.5 million at the end of 2025. S4

When can the money be used?

When annual royalty income falls 20 percent or more. A first withdrawal of about COP 2.9 trillion was authorised in March 2026. S8 S7

Is it an IFSWF member?

No. It is not on the IFSWF members list. S2

All sovereign wealth funds in Latin America and Caribbean · All stabilisation funds · All funds in Colombia

Sources

  1. S1Law 2056 of 2020, article 116 (Spanish)
  2. S2IFSWF, members list
  3. S3Law 2056 of 2020, article 113 (Spanish)
  4. S4Senate of Colombia, SGR financial statements at 31 December 2025 (Spanish)
  5. S5Banco de la República, sovereign fund administration (Spanish)
  6. S6Law 2056 of 2020, article 118 (Spanish)
  7. S7Infobae, royalties stabilisation withdrawal authorised, 22 March 2026 (Spanish)
  8. S8Law 2056 of 2020, article 114 (Spanish)
  9. S9Law 2056 of 2020, article 117 (Spanish)
  10. S10El Heraldo, Finance Minister Miguel Gómez Martínez, 8 August 2026 (Spanish)

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Informational only. SovereignWealthFunds.com is an independent public-source reference. It is not affiliated with or endorsed by any fund named on it, and it is not investment, legal or tax advice. Figures are as of the dates shown next to them and may have changed; please read each fund's official pages, linked on its profile. To report an error, use the contact page. Copyright SovereignWealthFunds.com. All rights reserved.

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