Petroleum Fund of Timor-Leste Notes to the financial statements
for the year ended 31 December 2013
7. Capital receipts and payments of the Petroleum Fund continue
Year ended 31122012 USD
Month Article 6.1a
receipts Article 6.1b
receipts Article 6.1e
Other receipts To
Consolidated Fund
Refunds of taxation
TOTAL
January 93,160,865
180,138,301 -
- -
273,299,166 February
96,038,096 179,140,095
- -
- 275,178,191
March 121,456,927
174,233,819 -
- -
295,690,746 April
104,088,156 157,322,078
8,634,400 263,000,000
- 7,044,634
May 102,685,660
213,522,442 -
153,000,000 -
163,208,102 June
111,075,669 153,706,594
- 103,000,000
- 161,782,263
July 83,251,701
26,899,973 242,625
163,000,000 -
52,605,701 August
118,135,734 97,141,613
- 113,000,000
- 102,277,347
September 128,026,264
175,771,530 -
113,000,000 -
190,797,794 October
205,514,637 209,082,084
- 203,000,000
- 211,596,721
November 145,793,386
189,139,327 -
153,000,000 -
181,932,713 December
303,291,883 181,626,671
- 230,900,000
- 254,018,554
Totals 1,612,518,978
1,937,724,527 8,877,025
1,494,900,000 -
2,064,220,530 Total Article 6.1
3,559,120,530
8. Cash and cash equivalents
The Petroleum Fund invests surplus cash in overnight markets with banks or through reverse repurchase agreements. For the purposes of the statement of cash flows, cash and cash equivalents comprise the following balances with original maturity of less than 90 days:
As at 31122013
As at 31122012
USD USD
Cash at bank 65,685,105
25,784,289 Overnight reverse repurchase agreements
4,500,000 35,100,000
70,185,105 60,884,289
The cash at bank includes the balance at the Federal Reserve Bank of New York, in the earmarked receipts account held by the BCTL in accordance with Article 5.2 of the Petroleum Fund Law.
9. Financial assets valued through profit or loss
Transactions in financial assets, which arise either from the investment of new funds or the periodic rebalancing of the investment portfolio, are summarised as follows:
As at 31122013
As at 31122012
USD USD
Financial assets at fair value through profit or loss Opening fair value
11,711,144,753 9,285,303,671
Purchases at cost 16,125,029,431
16,082,784,005 Proceeds from sales
13,598,334,271 13,825,534,764
Net gains on financial assets at fair value through profit and loss 640,006,671
184,526,790 Net foreign exchange lossesgains
19,353,812 724,925
Net gainslosses through interest income 46,186,224
16,659,874
Closing fair value 14,904,678,996
11,711,144,753
There were no impairment losses at balance date. The carrying amount of these assets approximates their fair value. - 18 -
Petroleum Fund of Timor-Leste Notes to the financial statements
for the year ended 31 December 2013
9. Financial assets valued through profit or loss continued
A summary of securities is as follows:
As at 31122013 USD
As at 31122012 USD
Designated as at fair value through profit or loss Fair Value
of net assets Fair Value
of net assets Fixed interest securities
European treasury bill 3,417,170
- -
- United States treasury notes
8,112,364,538 54
8,676,319,344 74
Australian government bonds 145,008,543
1 -
- Japanese government bonds
136,010,191 1
- -
United Kingdom government bonds 146,555,355
1 -
- European government bonds
441,234,140 3
- -
Other Public Sector Bonds 586,562,474
4 -
-
Total fixed interest securities 9,571,152,411
64 8,676,319,344
74 Equity securities
United States equities 2,913,563,696
20 1,596,913,717
14 Australian equities
162,180,483 1
- -
Japanese equities 468,696,730
3 260,955,141
2 United Kingdom equities
496,089,872 3
305,523,070 3
European equities 668,865,807
5 365,854,309
3 Equities from other countries
623,955,974 4
505,481,691 4
Total equity securities 5,333,352,562
36 3,034,727,928
26 Held for trading
Derivatives
Foreign currency forwards 174,023
- 97,481
- 174,023
- 97,481
- Total securities
14,904,678,996 11,711,144,753
The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped into Levels 1 to 3 based on the degree to which the fair value is observable.
· Level 1 fair value measurements are those derived from quoted prices unadjusted in active markets for identical assets or liabilities. The
Petroleum Fund does not adjust the quoted prices for these instruments. ·
Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly i.e. as prices or indirectly i.e. derived from prices. As level 2 investments include positions that are not
traded in active markets andor subject to transfer restrictions, valuations may be adjusted to reflect illiquidity andor non-transferability which are generally based on available market information.
· Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based
on observable market data unobservable inputs.
As at 31122013 USD
Financial assets Level 1
Level 2 Level 3
Total
Financial Instruments designated at fair value through profit or loss Derivatives
174,023 -
- 174,023
Equity securities 5,333,352,562
- -
5,333,352,562 Fixed interest securities
9,571,152,411 -
- 9,571,152,411
Total 14,904,678,996
- -
14,904,678,996
- 19 -