BCTL reports a slight increase in TL’s Petroleum Fund

BCTL reports a slight increase in TL’s Petroleum Fund

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DILI, 06 february 2024 (TATOLI) – The Banco Central de Timor–Leste (BCTL) today released the Quarterly Report of the Petroleum Fund of Timor-Leste for the period ended 31 december 2023.

The report shows that the capital of the fund as of 31 december 2023 was US$18.2521 billion compared to US$17.521 billion at the end of the previous quarter after adjusting for 2022 Fair Value of Private Debt Instrument issued by Timor Gap E.P.

The report shows that the gross capital inflows during the quarter were US$16.337 million.

The gross investment income of the Fund for the quarter was US$1.018 million comprising dividends and interest received were US$123 million, change in the market value of financial assets was US$877.23 million and FX movement was US$17.77 million. This represented the total portfolio return for the quarter was 5.86% while the benchmark return for the period was 5.95%.

The Petroleum Fund law specifies that the Operational Manager (Banco Central de Timor-Leste) is the agent responsible for the operational management of the Fund. The Ministry of Finance is responsible for setting the overall investment strategy for the Fund.

The Banco Central de Timor-Leste has managed the portfolio close to the benchmark over the period. The difference in return between the Total Portfolio return and the benchmark for this quarter was 8 basis points or 0.08 percent. The total Fund return since inception was 4.26 Percent.

Highlights of the LXIX Quarterly Report, which covers the period from 01 October 2023 to 31 December 2023 include:

  • The capital of the Fund at 31 December 2023 was $18.252 billion.
  • Gross cash inflows to the fund from taxes were $16.337 million.
  • Cash outflows were $302.064 million of which $300 million was transferred to the State Budget and $2,064 million was for management cost.
  • The total Fund return for the quarter was 5.86% compared to the benchmark return was 5.95%.
  • The portfolio return of the Financial Market Investments for the quarter was 6.06% while the benchmark return for the period was 6.11%.

The Quarterly report as well as the Petroleum Fund Law and Management Agreement are available from the Banco Central’s website https://www.bancocentral.tl


Journalist: Camilio de Sousa

Editor: Filomeno Martins


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