The net asset value of Trinidad and Tobago's Heritage and Stabilisation Fund (HSF) stood at US$5.39 billion at the end of September 2023, a 14.4 per cent increase compared with the US$4.71 billion at the end of September 2022.
The information was disclosed in the HSF's 2023 annual report, for the period October 1, 2022 to September 30, 2023.
The annual report was uploaded to the Ministry of Finance website yesterday, more than seven month after the end of the HSF's 2023 financial year.
In the summary of the annual report, HSF chairman, Ewart Williams, said the Fund returned 10.59 per cent for the 2023 financial year, "partially recovering from the steep losses during the previous financial year, when the Fund declined 16.52 per cent."
Williams said the Fund's positive performance was mainly driven by its equity investment, which returned 9.24 per cent as stocks rallied in excess of 20 per cent.
The HSF's equity benchmarks, Russell 3000 ex-Energy Index and MSCI EAFE ex-Energy Index, surged 20.21 per cent and 25.26 per cent respectively.
The HSF's fixed-income investments (0.95 per cent return) and USD fixed deposits (0.29 per cent return) also added to returns.
"When compared to its strategic asset allocation benchmark's return of 8.56 per cent, the Fund outperformed by 2.02 per cent (or 202 basis points) for the financial year," said the HSF chairman.
"Most notably, the Fund's overweight to US equities and USD fixed deposits, as well as active investment decisions within the non-US core international equity mandate, generated significant excess returns," according to Williams.
He also noted that the Government contributed US$182.2 million to the HSF in December 2022, in accordance with section 14 of the HSF Act (2007) in respect of financial year 2022. That deposit was held in USD fixed deposits, consisten with the board's stance to reduce downside risjs to the Fund and similar to the treatment of the deposit made in September 2022.
The current HSF board comprises Ewart Williams, chairman, and members Central Bank Governor, Dr Alvin Hilaire, permanent secretary in the Ministry of Finance, Suzette Lee-Chee, deputy Central Bank Governor, Dr Dorian Noel and Bevan Narinesingh.