SOFAR suggests revising its investment policy
The State Oil Fund of Azerbaijan (SOFAR) submitted proposals on the Funds investment policy in the future perspective to the Supervisory Board, Trend reports. В"It is related to the growing oil revenues during the coming 2-3 years. We must be ready to it, therefore respective investment strategy is to be developed, the SOFAR head, Samir Sharifov thinks.
The Fund intends in its proposals to divide the assets into three parts: as the expenditures portfolio, which will be defined according to the Funds budget, the portfolio for stabilization and emergency situations and the deposit portfolio designed for future generations. Funds from the third portfolio are to be intended for long-term investments in the period of 10 years and placed in shares for receiving big revenues. According to Sharifov, in the portfolio planned for the short-term period changes may take place, they may be also invested in the shares.
For accepting such strategy broad discussions will be held.
After adopting a new strategy the Oil Fund will intensify its operation aimed at increasing the number of managers, as it will identify the basic lines for their involvement. According to Sharifov, the number of managers has not changed since the last year. After the contract cancellation with the French bank Societe General Asset Management, which has been assigned $50 million for management by SOFAR, two managers remained. They are the Clarident bank (subdivision of Credit Suisse), $42,4 million from the Funds assets are at its disposal and Deutschebank Asset Management ($72,6 million).Under the acting investment policy SOFAR may assign not more than 40% of assets for management to foreign managers.