Finance Minister, Colm Imbert has confirmed that this country’s Heritage and Stabilisation Fund (HSF) has reached the US$6 billion mark.
In a brief post via ‘X’ (formerly Twitter), Imbert wrote:
“In June 2022, because of instability in the international financial system, the Net Asset Value of the Heritage and Stabilisation Fund (HSF) dropped to US$4.7 billion. Now two years later, because of prudent management, the value of the HSF has increased to $6.0B, an increase of US$1.3B.”
Back in June 2023, the Finance Ministry explained that it was “public knowledge that 2022 was an extremely challenging year for market players and sovereign wealth funds, given volatile geopolitics, high inflation, rising interest rates, and significantly negative returns in both stocks and bonds. It is the first year in history the size of the industry has shrunk. Heavy falls in stock and bond markets in 2022 cut the combined value of the world’s sovereign wealth and public pension funds for the first time ever.”
On June 7 this year, Imbert told the Parliament that the HSF was “inching up” to $6 billion.
He said: “Despite the fact that we had the need to do some withdrawals from the heritage fund, I dare say that our heritage fund is inching up close to US$6 billion.”
Om August 26, the Ministry of Finance noted that the total net asset value of the HSF at the end of March 2024 stood at “an impressive” US$5.898 billion, marking its highest level in four years.
It also noted that despite a withdrawal of US$160.38 million in the previous quarter, the fund “has outperformed expectations, driven by strategic asset allocation and strong investment decisions.”
However, in a subsequent media release, the UNC’s Shadow for Finance Dave Tancoo accused the government of “boasting” in an attempt to distract the population from the real issues.
Tancoo said: “The fact that this boast comes in the midst of the General Election campaign is yet another desperate attempt by a politically appointed board to sugarcoat the PNM Government’s horrendous mismanagement of the country’s economy.”