SovereignWealthFunds.comIlhabela Sovereign Fund
Ilhabela Sovereign Fund: what it invests in
Geography Mainly domestic
Ilhabela Sovereign Fund: how big it is, and on what basis
Ilhabela Sovereign Fund: what it publishes
Published 0 · Partly 3 · Not published 7
Our 10 item score. It measures what is public, not how well a fund is run.
- Transparency scoreS3
- 1.5 of 10
At a glance. The Ilhabela Sovereign Fund saves part of the oil royalties of Ilhabela, an island town of about 35,000 people off Sao Paulo state. Created in 2018 as a reserve for when royalties end, it also acts as a buffer: as royalty income fell, councils approved withdrawals of R$ 193 million in 2025 and R$ 250 million in April 2026 to keep public services running. S4 S1 S2
Key points
- Purpose: soften economic crises, give financial stability across generations and fund strategic projects. S1
- Contribution cut from 25 to 5 percent of royalties in February 2025, by a 10 to 1 council vote. S1
- The rate rises to 10 percent after four years and 15 percent after four more. S5
- May royalties fell from R$ 91.5 million in 2022 to R$ 17.1 million in 2026. S5
- Withdrawals are allowed when royalty income drops below a legal threshold. S2
- The Confiro and administrative councils approved R$ 250 million by 7 votes to 1 on 17 April 2026. S2
Interesting facts
Mandate and goals
The FSMI is a strategic reserve for the time when Ilhabela no longer receives oil royalties, and a cushion that can be drawn when royalty income falls below the legal floor. S1 S2
How it invests
| Industries | . Sector agnostic S3 |
|---|---|
| Asset classes | Cash and money markets S3 |
| Stages | Public markets S3 |
| Geography | Mainly domestic. Municipal reserve held in Brazil S3 |
| Direct / through funds / co-invest | Not published / Not published / No S2 |
| Ticket size | No ticket size; not an external investor. S3 |
| External managers | Not disclosed S3 |
| Co-investment programme | None. S3 |
Past investments
| Year | Investment | Type | Sector | Amount |
|---|---|---|---|---|
| 2026 | Withdrawal for services and payments. Approved 7 to 1; used under the 2026 budget law in payment order. S2 | State asset transfer | Financial services | R$ 250M |
| 2025 | Withdrawal. About 18 percent of the fund at the time, per local press. S4 | State asset transfer | Financial services | R$ 193M |
| 2025 | Contribution rate change. Council vote of 4 February 2025, 10 to 1. S1 | State asset transfer | Energy: oil and gas | 25% to 5% of royalties |
Case studies
Using the reserve as royalties fell S2 S5
- What: Councils approved R$ 250 million from the fund after royalty income fell below the legal limit.
- When: April 2026
- Size: R$ 250M
- Why: May royalties had dropped to R$ 17.1 million from R$ 91.5 million in 2022.
- Outcome: Funds went to the hospital, public transport subsidy, student programmes and street services.
Investment process
Withdrawals need approval of the Confiro royalties council and the administrative council, and must follow the annual budget law. S2
| Committee | Role |
|---|---|
| Confiro | Council overseeing royalty use S2 |
| Conselho Administrativo | Administrative council S2 |
How to approach: Contact the municipality; the fund takes no outside proposals. S2
Size and returns
- Headline size: Not disclosed (Published estimate, as of 2026-04-10) S4
- Press estimate before the 2025 withdrawal: Almost R$ 1B (Published estimate, as of 2026-04-10) S4
- Press figure, February 2025: Over R$ 448M (Published estimate, as of 2025-02-12) S1
- Returns: the fund does not publish a return figure.
Leadership
| Name | Title |
|---|---|
| Toninho Colucci | Mayor of Ilhabela S2 |
Governance and transparency
- Legal basis: Lei Complementar Municipal 1.333/2018 S2 S1
- Oversight: Confiro and the administrative council; municipal council for rule changes S2 S1
Transparency score: 1.5 of 10 (band 1 of 5). Our own 10-item rubric; see the methodology page.
History
For family offices
A municipal reserve with no outside investment programme. S3
Common questions
What is the Ilhabela Sovereign Fund?
A municipal reserve, created in 2018, that saves part of Ilhabela's oil royalties. S1
How big is it?
No official balance is published; press put it near R$ 1 billion before the 2025 withdrawal. S4
Can the town draw on it?
Yes, with council approval when royalties fall below the legal threshold. S2
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Sources
- S1OVALE (Sampi), Ilhabela cuts royalty contribution to fund (Portuguese)
- S2Prefeitura de Ilhabela, Confiro approves R$ 250 million withdrawal (Portuguese)
- S3Fundo Soberano dos Royalties de Ilhabela, portal (Portuguese)
- S4Noticias das Praias, Ilhabela seeks sovereign fund resources (Portuguese)
- S5Prefeitura de Ilhabela, sharp fall in royalties (Portuguese)
Disclaimer
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