b'FORGING TRANSFORMATION. FOSTERING SUSTAINABILITY. Asset ClassMarket Value as at June 30, 2018Current Asset AllocationFixed Income$9,081,283,00034.17%Equity*$12,877,690,00048.45%Real Estate$324,700,0001.22%Mutual Fund$906,922,0003.41%Cash and Cash Equivalents$3,387,875,00012.75%Mortgages$740,0000.003%Total$26,579,210,000100.00%*Equity includes fair value of investment in subsidiary companies The market value of NIBTTs investment portfolio aswith a purchase yield to maturity of 5.06%. During the at June 30, 2018 stood at $26.58 billion, reflecting ayear, $1.85 billion in new securities were purchased 5.27% or $1.33 billion increase over the Fund size aswhile $1.02 billion matured. The NIBTTs fixed income at June 30, 2017 which stood at $25.25 billion. Theportfolio invests in high-quality debt instruments as increase in the Funds market value was attributablethe portfolio is primarily invested in Government and to realised income from the fixed income andgovernment-guaranteed instruments which accounts equity portfolios totalling $1.96 billion. This increasefor approximately 60% of the fixed income portfolio.however, was partially offset by net unrealised lossesDuring late April 2018, S&P Global Ratings revised and withdrawals from the Investments Cash Accountits outlook on the Republic of Trinidad and Tobago to pay benefits of TT$330 million. There continues toto Negative from Stable with an affirmed BBB+ be a shortfall in contribution income to meet liquiditycredit rating.It is expected that moderately higher requirements.energy prices and higher production levels will lead The Equity Portfolio accounts for the largest assetto a mild economic recovery and smaller current class of the total fund, with a market value of $12.88account deficit. The rating agency believes that billion. There was an overall decline by approximatelythere continues to exist uncertainty about whether 0.12% or $16 million over the prior financial yearthis improvement will be sufficient to mitigate the mainly due to our focus on reducing single entityimpact that imbalances such as exchange rate concentration risk. Additionally, during the financialpressure, restrictions on accessing foreign currency, year, the NIBTT was successful in its participation ofnegative yield differentials on short-term treasury the Trinidad and Tobago NGL Limiteds (TTNGLs) securities relative to those of the US and historical Additional Public Offering (APO).gas supply shortages, will have on the local economy.Due to sluggish local economic conditions, theMeanwhile, Moodys held the countrys Ba1 rating domestic stock market benchmarked against thesteady in May 2018, although, according to its rating All T&T Index reported a slight positive return ofcriteria, still puts the country at the highest tier of junk 0.36% for the financial year. Despite this, the NIBTTsbond (high-risk) investment status. The credit rating domestic equity portfolio outperformed the Allis supported with a Stable outlook.T&T Index by 628 basis points, primarily due to theThe top two countries in which the portfolio is portfolios overweight position in its TTNGL holdings,invested are Trinidad and Tobago (81%) and North which significantly outperformed the All T&T Index. America (19%) whilst the largest industry sector As at June 30, 2018, the Fixed Income portfolioexposures are Financial/Banks (35%) and Sovereign increased by 8.53% or $713 million to $9.08 billion(22%).Year-on-Year Total Realised Investment Income 2018-20172017-2016000000Interest Income$783,260.00 $386,548.00 Dividend Income$384,684.00 $382,362.00 Gain on Sale of Foreign Equities$692,958.00 $117,411.00 Gain/(Loss) from Foreign exchange($13,069.00)$6,301.00 Gain/ (Loss) on Sale of Bonds($4,167.00)$15,548.00 Other Income$116,338.00 $104,905.00 Total Realised Investment Income$1,960,004.00 $1,013,075.00 27'