SOFAR Presents Part of Its Treasury to WB’s Management
Azerbaijan, Baku / corr Trend I.Khalilova, S.Babayeva / Gregory Jedzhechak, head of the Baku Office of the World Bank (WB), stated on 25 May that the Oil Fund of Azerbaijan (SOFAR) presented part of its treasury ($100mln) to the WB for management.
One of the terms of delivery of the funds for management is that the WB is to render assistance in boosting SOFAR's potential in management within the framework of the trilateral program on consultations.
The head of the WB Baku office said that the SOFAR has been receiving similar assistance.
"No matter how much the amount of funds is under the management of the WB's Treasury, they are managed through advanced technologies, which enables us to keep the portfolio of the WB and SOFAR out of the risk zone," Jedzhechak added.
After the cancellation of the contract with the French bank Societe Generale Asset Management, which received $50mln from SOFAR for management, SOFAR's portfolio had only two managers: Clarident (a member of Credit Suisse), which manages $42.4mln of SOFAR's assets; and Deutsche Bank Asset Management ($72.6mln). In accordance with existing investment policy, SOFAR can only hand over 40% of its assets to foreign management.
As of 1 April 2007, assets of the State Oil Fund of Azerbaijan made up $1,720,300, an increase by 17.7% over the last year.