Intergenerational Trust Fund for the People of the Republic of Nauru

At a glance. The Nauru Trust Fund is a perpetual savings fund set up in 2015 to give Nauru income after 2033 for education, health, environment and infrastructure, as phosphate and processing centre revenue fades. Backed by Nauru, Australia and New Zealand, it held A$421.8M of investments (about USD 275M) at June 2025 and returned 13.2 percent that year. S2 S4

Key points

• Returned 9.2 percent a year since April 2016, above its 7.7 percent CPI plus 4.5 percent objective. S2
• Assets passed A$400M for the first time in 2025, up A$65.7M in the year. S2
• FY2025 contributions above A$21.1M: A$20.2M from Nauru and A$914K from New Zealand. S2
• Targets 85 percent growth assets and 15 percent defensive, with no leverage. S5 S6
• Mercer manages the portfolio; BDO administers and checks payments; Vinstar monitors quarterly. S2 S6
• A 2024 Australia-Nauru treaty supports five more years of contributions. S2

Interesting facts

• It is registered in Australia as an international organisation, giving it body corporate status there. S6
• Its risk limit allows no more than four years of negative returns in every twenty. S5
• In May 2025 it held its quarterly meeting in Nauru with students and community groups. S2

Mandate and goals

Provide revenue to Nauru after 2033, or sooner if the Committee decides, for education, health, environment and infrastructure, and smooth windfall income. S2

• Keep the fund perpetual with payouts below long-term returns. S2
• Earn 4.5 percent a year over Australian CPI after fees over rolling ten years. S2
• Replace volatile phosphate and processing centre income. S1
• Return target: Australian CPI plus 4.5 percent a year after fees, over rolling ten-year periods S2

How it invests

Asset mix: Growth assets (target) 85%, Defensive assets (target) 15% S5

Published criteria

• Maximum long-term return within set risk tolerance. S6
• No leverage; diversified by asset class. S6
• Decisions on economic and financial grounds only. S6

Past investments

The fund has not published a list of investments.

Case studies

A phased path to payouts S2

• What: Four phases: build capital, raise growth assets, then trim them before annual distributions start.
• When: 2016 to 2036 and beyond
• Size: A$421.8M today
• Why: Grow a perpetual fund large enough to support the budget after 2033.
• Outcome: Now in phase two with 9.2 percent a year since inception.

Changing contributors S2

• What: Taiwan ends its contributions and revenue share by November 2025 under its MOU; Nauru assesses a replacement.
• When: 2024 to 2025
• Size: A$21.1M contributed in FY2025
• Why: Keep inflows steady as partners change.
• Outcome: A 2024 treaty with Australia supports Nauru's contributions for five years.

Investment process

The Trust Fund Committee, chaired by Nauru's Minister for Finance with contributor representatives, decides at quarterly meetings; decisions have been unanimous. S2 S6

1. Committee sets policy at quarterly meetings. S6
2. Mercer implements; BDO reviews before payments. S6
3. Minister tables audited accounts in Parliament. S6

How to approach: No route for outside proposals; documents on the Department of Finance page. S5

Size and returns

• Headline size: A$421.8M investments (30 June 2025) (Portfolio value) S2 S4
• In US dollars: about USD 0.275B. Converted at AUD 1.5314 per USD, 30 June 2025
• Total net assets: A$378.5M (Net assets or equity) S2
• Return, Year to June 2025: 13.2 percent (after fees) S2
• Return, Since April 2016: 9.2 percent a year S2
• Size over time (AUD million): 2024 356.1, 2025 421.8 S2

Leadership

The fund does not publish named leaders.

Governance and transparency

• Legal basis: Nauru Trust Fund Act 2012; contributor MOUs; Australian International Organisations (Privileges and Immunities) Act 1963 and Nauru Trust Fund Regulation 2015 S6
• Oversight: Parliament of Nauru receives audited accounts each year S6
• Santiago Principles: Full IFSWF member with a 2025 self-assessment S6
• Two signatures needed to approve invoices. S6
• Auditor and administrator picked by tender. S6

Transparency score: 7.5 of 10 (band 4 of 5). Our own 10-item rubric; see the methodology page.

• Published: total assets, annual return, long-term returns, audited financial statements, governance and mandate documents, named leadership, regular reporting schedule. S2 S5 S6
• Partly published: asset allocation. S2
• Not published: geographic or sector split, holdings or deal list. S2

History

Reports

• Nauru Trust Fund Annual Report 2025: https://naurufinance.info/wp-content/uploads/2025/12/2025-Annual-Report.pdf S2
• Santiago Principles self-assessment 2025: https://www.ifswf.org/assessment/ntf-2025 S6

Common questions

How big is the Nauru Trust Fund?

A$421.8M of investments at 30 June 2025, about USD 275M. S2

What has it returned?

13.2 percent in the year to June 2025 and 9.2 percent a year since April 2016. S2

Who contributes?

Nauru, Australia and New Zealand; Taiwan until November 2025; the ADB at the start. S2

Who runs it?

A Committee chaired by Nauru's Minister for Finance, with BDO and Mercer. S2

When will it pay out?

After 2033, or sooner if the Committee decides. S2

Related profiles

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• Micronesia and Marshall Islands Trust Funds Micronesia and Marshall Islands · USD 3.78B
• Revenue Equalization Reserve Fund Kiribati · A$1.74B
• 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 Nauru

Sources

1. S1IFSWF, member page: Nauru Trust Fund
2. S2Nauru Trust Fund, Annual Report 2025
3. S3IFSWF, our members
4. S4Frankfurter, ECB reference rates, 30 June 2025
5. S5Nauru Department of Finance, Intergenerational Trust Fund page
6. S6IFSWF, NTF Santiago Principles self-assessment 2025