Increase in Share Portfolio Provokes SOFAZ Plans to Expand List of Foreign Managers
Azerbaijan, Baku, 5 June / corr. Trend I. Khalilova/ The State Oil Fund of Azerbaijan (SOFAZ) does not plan to attract new foreign managers earlier than in the beginning of 2009, Shahmar Movsumov, the executive director of SOFAZ said.
According to Movsumov, the Fund is working with the manager-banks including Clarident (sub-division of Credit Suiss), Deutschebank Asset Management and a treasury of World Bank (WB).
"We are very pleased working with them, especially with the WB, and the Fund does not plan to cancel contracts, on the contrary, intends to enlarge the list of foreign managers due to the increase in our income," Movsumov said.
At present, less than 5% of Fund's shares are under the control of the foreign managers, with the key portfolio being controlled by SOFAZ itself. The head of the SOFAZ attributes it to the fact that the securities where Fund's assets have been placed, have a fixed income and foreign managers will not be able to add anything to it. However, their experience and skills will be required after the increase in the portfolio of shares.
At present, the part of the portfolio of the assets of SOFAZ, which is at the disposal of the foreign managers, totals $244.31mln. Clarident possesses $49.96mln, Deutschebank Asset Management - $8417mln and treasury of World Bank within RAMP (Reserve Assets Management Program) - $110.18mln.
The specific gravity of the assets at the disposal of Deutschebank totals 34.45%, Clarident - 20.45% and WB - 45.1%. As a result of 2007, the yield from managing of Fund's portfolio at the disposal of Clarident made up 6.43%, Deutschebank - 5.82% and WB - 7.08%.
The assets of SOFAZ made up $5.05bln with a possible rise of $10bln by the end of 2008, Movsumov said.
The correspondent can be contacted at: [email protected]