Santiago Principles Self-Assessment

The Heritage and Stabilization Fund

Fund Details Fund Website Search Assessments PDF version
  • Pillar 1: Legal
  • Pillar 2: Institutional
  • Pillar 3: Investment
Principle 1

1. The legal framework for the SWF should be sound and support its effective operation and the achievement of its stated objective(s).

1.1. The legal framework for the SWF should ensure legal soundness of the SWF and its transactions.

1.2. The key features of the SWF’s legal basis and structure, as well as the legal relationship between the SWF and other state bodies, should be publicly disclosed.

The legal framework for the Heritage and Stabilisation Fund (HSF) is publicly disclosed in the Heritage and Stabilisation Fund Act, 2007 (HSF Act). The HSF Act outlines the purpose of the HSF and the conditions for deposit to and withdrawal from the Fund.

The Act defines the roles and responsibilities of the Board of Governors of the HSF in addition to the role of the Central Bank.

Principle 6

6. The governance framework for the SWF should be sound and establish a clear and effective division of roles and responsibilities in order to facilitate accountability and operational independence in the management of the SWF to pursue its objectives.

In accordance with the HSF Act, the Board of Governors comprises five members.  The responsibility for the management of the Fund was delegated to the Central Bank of Trinidad and Tobago, which acts as agent for and on behalf of the Heritage and Stabilisation Fund. The role of the Central Bank of Trinidad and Tobago is further detailed in the HSF Act and an Instrument of Delegation.

Principle 18

18. The SWF’s investment policy should be clear and consistent with its defined objectives, risk tolerance, and investment strategy, as set by the owner or the governing body(ies), and be based on sound portfolio management principles.

18.1. The investment policy should guide the SWF’s financial risk exposures and the possible use of leverage.

18.2. The investment policy should address the extent to which internal and/or external investment managers are used, the range of their activities and authority, and the process by which they are selected and their performance monitored.

18.3. A description of the investment policy of the SWF should be publicly disclosed.

The Investment Policy of the HSF is clear and consistent with defined performance objectives, risk tolerance, and asset mix consistent with its investment strategy. It is also based on sound portfolio management principles and has been approved by the Board of Governors of the HSF.

While the overall investment objective of the Fund is publicly stated, the investment policy of the HSF is not publicly disclosed.