[UPDATED] Imbert: US$6b in Heritage and Stabilisation Fund

FINANCE Minister Colm Imbert has said the current net asset value (NAV) of the Heritage and Stabilisation Fund (HSF) is US$6 billion.

He made this statement in a post on X (Twitter) on September 5.

Imbert said in June 2022, the value of the HSF was US$4.7 billion. He added this was attributed to instability in the international financial system at that time.

“Now two years later, because of prudent management, the NAV of the HSF has increased to (US) $6 billion, an increase of US$1.3 billion.”

UWI economist Dr Marlene Attzs described the increase in the fund’s value as promising.

But she said the question going forward is how will government manage this increase.

In a WhatsApp comment sent to Newsday, Attzs said, “Two years ago in 2022, there was significant global capital volatility, fueled primarily by the Ukraine-Russia war.”

She added this would have led to the HSF’s NAV’s decline to US$.4.7 billion.

Attzs said this development was not unique to Trinidad and Tobago in 2022.

“Sovereign wealth funds globally would have been impacted by this capital market volatility that saw surges in inflation and interest rates.”

She recalled that in December 2016, the HSF’s NAV was US$5.55 billion and in 2023, it was US$5.50 billion.

Fast-forwarding to the present, Attzs continued, “It’s promising news that the HSF has increased to (US)$6 billion. But it is not as healthy as it could have been because of low energy revenues accruing to the government.”

She said this meant government was unable to deposit into the HSF the amount of revenue it would like to.

“I think the current value of the HSF also has to do with the withdrawals that the government has made from the fund over time.”

Attzs said the increase in the fund’s NAV could be partly attributed to “decisions made by the management team, the team that manages the portfolio for the HSF.”

She added this may have led to positive returns on the fund’s investment portfolio.

“The real issue should be, how does the government manage this increase?”

She asked how government would do this and “curtail its withdrawals moving forward,” saying the way government strikes this balance could determine how the NAV increases over time.

She added that the purpose of the HSF was to look after the economic interests of current and future generations of the population

Attzs said the money in the HSF is also used to help Trinidad and Tobago navigate its way through choppy economic waters.

In the HSF’s 2023 annual report, chairman of the fund’s board of governors Ewart Williams said the NAV of the HSF rose by 10.6 per cent, compared with a decline of 16.5 per cent in the previous year.

“The recovery of the HSF in 2023 was largely due to its strong returns from equity investments in both the US and non-US developed markets.”

This story has been adjusted to include additional details. See original post below.

FINANCE Minister Colm Imbert has said the current value of the Heritage and Stabilisation Fund (HSF) is US$6 billion.

He made this statement in a post on X (Twitter) on September 5.

Imbert said in June 2022, the value of the HSF was US$4.7 billion. He added this was attributed to instability in the international financial system at that time.

"Now two years later, because of prudent management, the value of the HSF has increased to (US) $6 billion, an increase of US$1.3 billion."