Azerbaijan, Baku, Dec. 29 / Trend /
Azerbaijani President, Ilham Aliyev, approved the program outlining the main directions for using the Azerbaijan State Oil Fund's funds (SOFAZ) in 2011, AzerTaj state news agency reported.
According to the approved program, the total investment portfolio of SOFAZ is projected at 19.4 billion manat.
The liquidity level of SOFAZ's funds must be at least $ 100 million, so as to timely and fully implement transfers planned within the budgetary expenditures.
The currency structure of the investment portfolio is fixed in the following way: 50 percent of the assets can be exchanged for U.S. dollars, 40 percent for euros and five percent for British pounds. The remaining five percent of the total cost of the investment fund's portfolio may be in the currencies of countries with long-term ratings of "A" (Standard and Poor's) and "A2" (Moody `s), or in dollars, euros and pounds sterling.
Not more than $ 600 million of SOFAZ's foreign funds may go to investments in projects for developing the mining industry in the Caspian Sea, or to the securities of the main founders, having long-term investment rating.
SOFAZ may transfer up to 60 percent of its investment portfolio to foreign managers for management. But a manager cannot get more than 15 percent of the total portfolio value for management purposes. The basic indicator or benchmark is the rate of three-month LIBOR, published by the British Banks Association, to determine the return on funding assets to the investment fund (except the costs for portfolio management).