YIELD ON SOFAR ASSETS MANAGEMENT BY INTERNATIONAL MANAGERS TO MAKE 3%
The average yield from the State Oil Fund of the Azerbaijan Republic (SOFAR) assets management on the results of the first half-year of 2005 is some 3%. This is taking place on the background of the US reserve rate growth and some euro rates lowering, the SOFAR executive director Samir Sharifov told Trend.
And with all this, according to Sharifov, 35 % of the fundвЂ™s means for the moment are deposited in euro. 95% of assets fall at the three basic currencies: the US dollar, the British pound and the euro. The rest 5 % may be placed in the currencies of the вЂњ8 BigsвЂќ countries or in the currency of any other country, a long-term sovereign rating of which is not lower of вЂњA.
Sharifov also noted, that re-evaluation of assets in the manat equivalent is taking place quarterly, following their proportional distribution in various currencies.
It should be noted that the yield from the SOFAR assets management on the results
of 2004 at the three-month LIBOR rate of 1,56% was 2,57% (at that time the SOFAR assets were 4 758 166,2 million manats or $970,5 million). And with all these, the yield from assets management by the foreign manager Clarident (part of the Credit Swiss group) made вЂ" 2,33%, Deutschebank Asset Management вЂ" 1,68%.
The average returns from assets management for the period of 2001 - 2004 were 3,25% (2001 вЂ" 3,87%, 2002 вЂ" 2,15%, - 2003 вЂ" 4,42%, 2004 вЂ" 2,57%). Taking into account the inflation rate of 1,93%, for 2001-2004, the real returns were 1,32%. In 2004, the real returns were 0,34% with the inflation rate of 2,23%.
The maximal yield for the period of cooperation with Clarident was 3,77%, minimal вЂ" 0,84%, Deutschebank Asset Management вЂ" respectively 6,2% and 2,03%.