Dear Editor,
The fund managers that recently visited and met with the government have been at the forefront of money management for a long time. We should not be hesitant to embrace the investment opportunities that are before us. The current rate being received for the oil sector’s funds in the US is not on par with the fixed rate instruments now on the market. The 2022 Q4 report shows a return of less than 1% while fixed income asset rates have been at least twice as much for the same period.
When our country risk is considered along with the rates available locally, the management of the NRF is also underperforming. This year’s targeted return at a minimum should be in the mid-single digits in order to keep pace with the inflation rate impacting the currency in which the funds are being held. Having experienced money managers provide this needed service for the funds in the NRF is not a bad idea. Maybe then we will be able to get the 8% return on our decommissioning funds which are currently being used by Exxon free of cost.
Sincerely,
Jamil Changlee
Chairman
The Cooperative Republicans of Guyana
