SOFAZ to Attract New Foreign Managers in 2007
Starting from 2007, due to the expected growth in revenues of SOFAZ (State oil Fund of Azerbaijan) , and taking into consideration foreign experience, the Fund is expected to attract new foreign managers to manage its assets, Shakhmar Movsumov, Executive Director of SOFAZ, told during the today's press-conference, Trend reports. Two managing banks left, after a contract with the French bank Societe General Asset Management was cancelled. The bank managed $50 mln. of SOFAZ money. The first manager is the bank Clarident (a branch bank of Credit Suisse), that possess $42.4 mln. of the Fund's assets. The second one is Deutschebank Asset Management ($72.6 mln.).According to the existing investment policy, SOFAZ may pass not more than 40 percent of its assets to foreign banks.
According to Mr. Movsumov, presently, the acting foreign managers are administering just 8-9% of the assets of SOFAZ. Time is needed to attract new managers. Tender should be announced. However, I think that we could attract World's leading managers this way, pointed out the Head of SOFAZ.
He said, that the Fund`s assets managing strategy is being in the focus of everyone's attention. But it depends on changings in international financial markets. Our strategy is based just on this, since the Fund's assets are managed in international markets. Research works shows that no changes are expected for the next few years. And this is analyzed every year, therefore we do not expect to change our investment strategy. From a point of view of the growth in revenues of SOFAZ, as well as conjecture of international markets, we have always done our best to optimize our investment strategy, pointed out Mr. Movsumov
At the proposals concerning the investment policy of SOFAZ for a short-term strategy prepared by the Fund, it is proposed to divide assets to three parts - as a portfolio of expenses that will be determined in accordance with the Fund's budget, a portfolio aimed at stabilizing and emergency situations, and a deposit portfolio aimed for the next generation. Means from the third portfolio should be aimed at long-term investments considered for 10 years and placed as shares to gain bigger profits.