Dear Editor,
The information on royalties and profit oil may be found on the Bank of Guyana’s website in the Natural Resource Fund (NRF) Quarterly Reports. The returns earned by the fund reflect a very conservative fixed income investment posture.
The yield is competitive when considering this investment approach. Given the current inflation rate in the U.S. and the stability of the Guyanese currency, the real rate of return for the fund is in the lower single digits. The Ministry of Finance and the Bank of Guyana may want to consider a more diversified investment strategy that incorporates low risk and higher return investments in the equity markets.
According to the most recent quarterly report of the NRF, the markets are providing rates of return in the upper single and lower double digits. Investing and reinvesting a small portion of the NRF, such as the fund’s fixed income interest earnings, in index annuity funds and equity market index funds should be considered.
Sincerely,
Jamil Changlee
Chairman
The Cooperative Republicans of Guyana
