DILI, 10 February 2025 (TATOLI) – In a release today, the Banco Central de Timor-Leste (BCTL) reported a US$700 million decrease in Timor-Leste’s Petroleum Fund. The fund’s capital declined from US$18.97 billion on September 30 to US$18.27 billion on December 31, 2024.
“The capital of the fund as of 31 December 2024 was US$18.27 billion compared to US$18.97 billion at the end of the previous quarter after adjusting for 2024 Fair Value of Private Debt Instrument issued by Timor Gap E.P,” said in a statement.
The report shows that the gross capital inflows during the quarter were $11.82 million.
The gross investment income of the Fund for the quarter was -$251.29 million comprising dividends and interest received were $128.80 million, change in the market value of financial assets was -$380.01 million. This represented the total portfolio return for the quarter was -1.03% while the benchmark return for the period was -1.04%.
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 of 78. The difference in return between the Total Portfolio return and the benchmark for this quarter was positive 13 basis points or positive 0.13 percent. The total Fund return since inception was 4.48 Percent.
Highlights of the LXXIII Quarterly Report, which covers the period from 01 October 2024 to 31 December 2024 include:
The capital of the Fund at 31 December 2024 was $18.27 billion.
Gross cash inflows to the fund from taxes were $11,82 million.
Cash outflows were $454,51 million of which $450 million was transferred to the State Budget and $4,51 million was for management cost.
The portfolio return of the Financial Market Investments for the quarter was -1,03% while the benchmark return for the period was -1,04%
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
TATOLI
