The National Insurance Board of Trinidad and Tobago (NIBTT) is continuously working to achieve the highest available returns within our investment policy for the benefit of our customers. Income earned from our investments together with contribution income are used to provide coverage for our insured population.
During FY2012, the financial and economic environment continued to pose a significant challenge for organisations across the globe. Nevertheless, the NIBTT remains committed to the utilisation of a prudent investment strategy that allows us to maximise return on viable investment opportunities that will ultimately grow the NI Fund. We continued these strategies within the framework of our new investment policy in order to achieve commendable results in the face of a challenging economic climate.
Our net realised investment yield of 5.98% represents a net realised investment income of $0.85Bn for the financial year - a decrease of 13% ($0.13Bn) from the $0.98Bn figure recorded in FY2011. This was 17.48% or $0.18Bn less than the budgeted figure of $1.03Bn. The lower than expected income levels were attributable to lower than anticipated dividends on foreign equity holdings, as well as reduced levels of investment than initially budgeted in Government Bonds and Corporate Bonds.
Our net total investment yield of 6.58% represents a net total investment income of $1.06Bn - that is, 44.5% or $0.8Bn less than the $1.91Bn achieved last financial year.
The NIBTT has once again maintained its prudent and non-speculative approach to investment during FY 2012. Equities accounted for the largest share of 26.86%of the investment portfolio based on market values at the end of FY 2012. This was followed by Cash, Fixed Deposits and Money Market Instruments (22.54%), Government Securities (16.97%), Corporate Bonds (10.99%), Overseas Investments (11.11%), Debentures (7.32%), Mutual Funds (3.21%), Real Estate (0.87%) and Mortgages (0.13%).