SovereignWealthFunds.comRevenue Equalization Reserve Fund
Revenue Equalization Reserve Fund: what it invests in
Geography Global
Revenue Equalization Reserve Fund: how big it is, and on what basis
In US dollars: about USD 1.2B. Converted at AUD 1.452 per US dollar on 30 June 2026.
Return since 1995 6.0% a year (to Nov 2019)
Revenue Equalization Reserve Fund: what it publishes
Published 3 · Partly 5 · Not published 2
Our 10 item score. It measures what is public, not how well a fund is run.
- Transparency scoreS6
- 5.5 of 10
At a glance. The RERF is Kiribati's national savings fund, started in 1956 with phosphate money from Banaba. Since mining ended in 1979 it has been invested offshore by external managers and topped up from fishing licence income. It reached a record A$1.67 billion in June 2025 and about A$1.74 billion by July 2026, about USD 1.2 billion, toward a A$2 billion goal. S2 S7 S4
Key points
- Grew from A$744 million in March 2016 to A$1.67 billion in June 2025. S7
- Government goal: A$2 billion by end 2027. S4
- Parliament set a principle in 1996 of keeping the fund's real value per person constant. S5
- Withdrawals since 2016 came to about 7 percent of its value, A$120 million, by June 2025. S7
- Annual withdrawals were cut from A$78 million to A$45 million. S4
- Returned 6.0 percent a year from June 1995 to November 2019. S8
Interesting facts
Mandate and goals
The RERF saves the proceeds of a resource that has run out, smooths swings in revenue and helps balance the recurrent budget. The Government of Kiribati is both trustee and beneficiary, with sole say over investment and use. S5 S1
How it invests
| Industries | . Sector agnostic S6 |
|---|---|
| Asset classes | Public equities, Fixed income S8 |
| Stages | Public markets S8 |
| Geography | Global. Offshore; country weights not published S6 |
| Direct / through funds / co-invest | No / Yes / No S6 |
| Managed in house | 0 percent S6 |
| Ticket size | Not applicable; assets are held through external managers. S6 |
| External managers | External managers report quarterly; BNY Mellon is custodian S6 |
| Co-investment programme | No co-investment. S6 |
Past investments
| Year | Investment | Type | Sector | Amount |
|---|---|---|---|---|
| 2026 | Withdrawal for outer-island roads and causeways. Budgeted draw from the fund for island infrastructure. S4 | State asset transfer | Infrastructure and utilities | A$75M (planned) |
| 1979 | Phosphate revenue savings. Value when Banaba mining ended, from A$555,580 at the start. S2 S1 | State asset transfer | Mining and metals | About A$69M at 1979 |
Case studies
From phosphate to perpetual savings S2 S5
- What: Saved Banaba phosphate taxes and royalties until mining ended at independence.
- When: 1956 to 1979
- Size: About A$69M by 1979
- Why: To leave a lasting income source after a finite resource ran out.
- Outcome: Reached A$1.67B in June 2025.
Restraint on withdrawals S7 S4
- What: Cut annual dividend withdrawals from A$78M to A$45M, with fishing income easing budget needs.
- When: 2016 to 2026
- Size: Withdrawals about 7 percent of value since 2016
- Why: To meet the A$2B goal and protect real per capita value.
- Outcome: Value more than doubled from 2016 to 2025.
Investment process
The RERF Investment Committee, chaired by the Minister of Finance, sets strategy and appoints external managers. The Investment Unit analyses performance and the Ministry reports to Parliament and partners. S6
| Committee | Role |
|---|---|
| RERF Investment Committee | Chaired by the Minister of Finance S6 |
How to approach: No route for outside proposals; the Ministry lists a general office address. S6
Size and returns
- Headline size: A$1.74B (Fund market value, as of 2026-09-23) S4
- In US dollars: about USD 1.2B. Converted at AUD 1.452 per US dollar on 30 June 2026.
- Record value, June 2025: A$1.67B (Fund market value, as of 2025-08-07) S7
- Return, June 1995 to November 2019: 6.0 percent a year S8
- Return, 5 years to November 2019: 7.6 percent a year S8
- Size over time (AUD million): 2009 570.5, 2016-03 744, 2019 1,153.4, 2021 1,352, 2024 1,523, 2025-06 1,670 S7 S9
Leadership
| Name | Title |
|---|---|
| Dr Teuea Toatu | Vice President and Minister of Finance and Economic Development; chairs the Investment Committee S7 |
Governance and transparency
- Legal basis: Special fund under the Public Finance (Control and Audit) Act S6
- Oversight: Investment Committee chaired by the Minister of Finance; reports to Parliament S6
- Custodian: BNY Mellon. S6
- IMF Article IV reviews cover the fund's role in fiscal policy. S10
Transparency score: 5.5 of 10 (band 3 of 5). Our own 10-item rubric; see the methodology page.
History
For family offices
The government is sole trustee and the fund invests only through external managers; there is no co-investment programme. S5 S6
Reports
- RERF Annual Report 2024: https://www.mfed.gov.ki/node/141 S6
- IMF 2025 Article IV staff report: https://www.imf.org/en/publications/cr/issues/2025/07/10/kiribati-2025-article-iv-consultation-press-release-and-staff-report-568412 S10
Common questions
When was the RERF founded?
How large is it?
A$1.67 billion in June 2025 and about A$1.74 billion by July 2026. S7 S4
Who oversees it?
The RERF Investment Committee chaired by the Minister of Finance. S6
What is the 2027 goal?
A$2 billion. S4
Related profiles
- Timor-Leste Petroleum Fund Timor-Leste · USD 18.61B
- Micronesia and Marshall Islands Trust Funds Micronesia and Marshall Islands · USD 3.78B
- Intergenerational Trust Fund for the People of the Republic of Nauru Nauru · A$421.8M investments (30 June 2025)
- Tuvalu Trust Fund Tuvalu · AUD 311.4M
- Nauru Phosphate Royalties Trust Nauru · Not published
- Future Fund (Australia) Australia · A$289.7B
All sovereign wealth funds in Australia and Pacific · All savings and future generations funds · All funds in Kiribati
Sources
- S1ANU Open Research, paper on the Kiribati RERF
- S2Banaban heritage paper on phosphate revenue
- S3IFSWF, members list
- S4Devpolicy, how fiscal discipline sustains social protection in Kiribati
- S5IMF Working Paper 05/154 on Pacific trust funds
- S6Kiribati Ministry of Finance and Economic Development, RERF page
- S7Kiribati Ministry of Finance, RERF reaches a record A$1.67 billion
- S8Pacific Islands Forum, Management of Pacific Sovereign Wealth Funds
- S9Wikipedia, Revenue Equalization Reserve Fund (revision of 31 October 2025)
- S10IMF, Kiribati 2025 Article IV staff report
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