The Timor-Leste Petroleum Fund ( pt, Fundo petrolífero de Timor-Leste) is a

sovereign wealth fund A sovereign wealth fund (SWF), sovereign investment fund, or social wealth fund is a state-owned investment fund that invests in real and financial assets such as stocks, bonds, real estate, precious metals, or in alternative investments such as ...

into which the surplus wealth produced by

East Timor East Timor (), also known as Timor-Leste (), officially the Democratic Republic of Timor-Leste, is an island country in Southeast Asia. It comprises the eastern half of the island of Timor, the exclave of Oecusse on the island's north-west ...

petroleum and gas income is deposited by the East Timorese government. The fund was established in 2005 with an opening balance of $205 million. As of 31 December 2010, the capital of the fund was US$6.9 billion. The fund signed up to the

Santiago Principles The Santiago Principles or formally the Sovereign Wealth Funds: Generally Accepted Principles and Practices (GAPP) are designed as a common global set of 24 voluntary guidelines that assign best practices for the operations of Sovereign Wealth Fund ...

on best practices for managing Sovereign Wealth Funds and joined the

International Forum of Sovereign Wealth Funds The International Forum of Sovereign Wealth Funds (IFSWF) is a nonprofit international group of sovereign wealth funds managers which was established in 2009. It is based in London, England. History In 2009, a group of 23 leading state-owned in ...

. As a member it publishes how it adopts and implements the principles within its governance procedures. In December 2021 the fund had US$18.5 billion in assets under management.

Finances

Earnings Earnings are the net benefits of a corporation's operation. Earnings is also the amount on which corporate tax is due. For an analysis of specific aspects of corporate operations several more specific terms are used as EBIT (earnings before intere ...

of the fund were around 4% in the 5 years to July 2011. A key milestone was achieved in June 2014 when the equity allocation in the fund reached 40%. The Petroleum Fund returned 3.3% in 2014, or 2.5% after inflation. The fund's end-of-year balance in 2014 was $16.5 billion.Petroleum Fund Annual Report 2014
/ref>

References

{{Portal, Asia, Energy Sovereign wealth funds Economy of East Timor Energy in East Timor 2005 establishments in East Timor