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SOFAZ not to Attract Foreign Managers Temporarily

Oil&Gas Materials 19 September 2008 13:53 (UTC +04:00)

Azerbaijan, Baku, 19 September/ Trend , E. Ismayilov/ "State Oil Fund of Azerbaijan (SOFAZ) has completed attracting foreign managers because of instability in financial markets," Shahmar Movsumov, executive director of SOFAZ said.

"We will stop this process until markets stabilize. We want to save what we have and not to face losses," he said.

Earlier, SOFAZ planned to attract foreign managers at the early 2009.

At present, Fund works with the following managers - bank Clarident (subdivision of Credit Suisse), Deutschebank Asset Management and World Bank Treasury.

At present, less than 5% of SOFAZ assets are at the disposal of foreign managers, but SOFAZ manages the key portfolio of assets as securities where SOFAZ assets has been placed, have a fixed income and foreign managers will not be able to add anything. However, their experience and skills will be required after portfolio of stocks grows.

At present, portfolio of assets of SOFAZ at the disposal of three foreign managers makes up $244.31mln. Clarident holds $49.96mln, Deutschebank Asset Management - $84.17mln, World Bank Treasury - $110.18mln within RAMP (Reserve Assets management program).

The percentage of assets managed by Deutschebank totals to 34.45%, Clarident - 20.45% and WB - 45.1%. Profitability from management of assets at disposal of Clarident made up 6.43%, Deutschebank - 5.82 and WB- 7.08%.

The assets of SOFAZ amounted to $10.216bln. as of 4 September.

The correspondent can be contacted at: @trend.az

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