Home' Trinidad and Tobago Guardian : March 6th 2014 Contents A21
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Dale Laughlin, managing director at
DocuCentre Ltd, was appointed chairman
of Youth Business Trinidad and Tobago
(YBTT) at the company's annual general
meeting earlier this month. She succeeds
Richard P Young, former managing
director of Scotiabank T&T, who is now
Laughlin, a multi-faceted business
professional, previously held the position
of vice-chairman. She is also the head of
AmCham TT's Business Incubator Project
as well as a business coach.
Also joining the board are Lara
Quentrall-Thomas, founder and CEO of
Regency Recruitment and Resources Ltd
and Elaine Green, an attorney-at-law in
Hudson-Phillip's Chambers. Other
members of the board include Nicholas
Galt, Colin Hosein, Georgina Terry and
YBTT, an accredited member of Youth
Business International in the United
Kingdom, assists young entrepreneurs
between the ages of 18 and 35 to start
and grow their own businesses by offering
them training, mentoring and financing.
New board appointments at YBTT
The Heritage and Stabilisation Fund (HSF),
T&T s sovereign wealth fund, bounced back
up to US$5.154 billion at the end of the third
quarter of 2013, the Ministry of Finance and
the Economy said in a recent report. The
HSF serves as the national savings account
for future generations.
It bounced back up to reach US$5.154 billion
at the end of the third quarter (Q3) of 2013,
improving from the US$4.914 billion to which
it had fallen in the second historic loss in its
In the history of the fund, the national sav-
ings account balance or net asset value (NAV)
had never contracted until the quarter ended
June 30, 2012 and then again, the quarter
ended June 30, 2013. It fell from US$4.933
billion in Q1 2013 to US$4.914 billion in Q2
2013. It had fallen from US$4.397 billion in
Q1 2012, to US$4.378 billion in Q2 2012.
In the quarter ended September 30, 2013,
Government deposited US$42.4 million. Prior
to that there were deposits of US$181.3 million
in Q3 2012, and US$26.2 million in Q2 2012.
In 2011, US$451.4 million---the highest con-
tribution made since 2008---was deposited.
In Q3 2010, a contribution of US$373.5 million
was deposited, after US$103.8 million was
deposited in Q2 2010.
The previous administration made only
three contributions of US$873.9 million in Q3
2008, US$180.2 million in Q2 2008, and
US$321.7 million in Q3 2007.
The fund generated the highest quarterly
income in its history in Q3 2013 with US$143.1
million, followed by US$70.7 million in Q1
2013 and US$20.6 million in Q2 2011.
The HSF s July to September 2013 invest-
ment report said: "The HSF investment port-
folio returned 3.95 per cent for the quarter
ended September 2013, compared with a return
of 3.47 per cent for the Strategic Asset Allo-
cation (SAA) benchmark. The Fund s exposure
to equity and fixed income contributed pos-
itively to absolute returns.
"This brought the HSF investment portfolio
return to 8.63 per cent for the financial year
ending September 30, 2013, compared to 7.26
per cent for the benchmark. There was a
deposit to the fund of US$42.5 million in July.
At the end of September 2013, the net asset
value of the HSF was US$5.154 billion, an
increase from the US$4.914 billion reported
at the end of June 2013."
Over the period July to September 2013, the
asset classes of the fund deviated from their
SAA, the report said, but their weights were
all within the permitted (plus or minus five
per cent) range.
The approved SAA for the HSF investment
portfolio is as follows: US Short Duration Fixed
Income Mandate (25 per cent); US Core
Domestic Fixed Income Mandate (40 per cent);
US Core Domestic Equity Mandate (17.5 per
cent); Non US Core International Equity Man-
date (17.5 per cent).
Throughout the quarter, the two equity
mandates carried overweight allocations relative
to their SAA weights and these resulted from
their stronger performance when compared
with their fixed income counterparts, the
Using investopedia definitions, overweight
is a situation where a portfolio holds an excess
amount of a particular security when compared
to the security s weight in the underlying
benchmark portfolio. Underweight is a situ-
ation where a portfolio does not hold a suf-
ficient amount of a particular security when
compared to the security s weight in the under-
By the end of the quarter, the asset class
with the largest overweight was the US Core
Domestic Equity mandate while the US Core
Fixed Income mandate had the largest under-
Of the US$5.154 billion NAV, the investment
portfolio was valued at US$5.152 billion, while
the remaining US$1.9 million was held in cash
to meet the day-to-day expenses that arise
from the management of the fund.
The fund s target asset allocation for the
period September 30, 2012, to September 30,
2013 shows a portfolio heavily weighted in US
fixed income securities, underscoring sovereign
T&T s exposure to a US government default,
as that country s Congress had threatened to
cause twice in the last two years. (See chart)
After second historic loss...
Heritage Fund back up to US$5.1b
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