Pula Fund

DEFINITION of 'Pula Fund'

The Pula Fund is a sovereign wealth fund established in 1994 by the Republic of Botswana, an African nation with a rapidly growing economy and large diamond and mineral reserves. It was established with the objective of preserving part of the income from diamond exports for Botswana's future generations.

BREAKING DOWN 'Pula Fund'

The Pula Fund is managed as a long-term investment portfolio by the Bank of Botswana, and is funded by foreign exchange reserves that exceed the nation's medium-term requirements. It invests in public equity and fixed income instruments in industrialized economies. The Pula Fund had assets in excess of $6 billion as of February 2010.