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8,6% out of SOFAZ Assets Handed Over to Foreign Managers

Business Materials 30 January 2007 21:12 (UTC +04:00)

The issue on involving new foreign managers to govern assets of SOFAZ might be viewed due to the expected increase in the revenues to be gained by the State Oil Fund of Azerbaijan and taking into account the use of the international experience in this issue, Trend reports. Shahmar Movsumov, the SOFAZ Executive Director, said during the today press-conference dedicated to the results of 2006 and plans for 2007 that after the contract with French bank, General Asset Management was cancelled, and only two managers of SOFAZ have been left. SOFAZ handed over $50 mln. to the French bank for governing.

The first manager is Bank Clarident (a Branch Bank of Credit Suisse). It possesses $42,4 mln. out of the whole assets of the Fund, and Deutschebank Asset Management ($72,6 mln.). According to the SOFAZ existing investment policy, the Fund may hand over to the foreign managers for the governing not more than its 40% of the assets. However, the most part of the assets are governed by the Fund itself - 91,4%. The weight of the funds Deutschebank governs is 5,4%, Clarident вЂ" 3,2%. According to Mr. Movsumov, the yield from governing the Fund's portfolio handed over to Clarident reached 6,28%, and 5,25% for Deutschebank. Mr. Movsumov thinks that the high yield on the portfolio that Clarident possesses is linked with the mandate of the financial institution.

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