What is basis for target income of Oil Fund`s portfolio management?

13:19 - 30.12.2019


December 30, Fineko/abc.az. The 6-month LIBOR interest rate on the corresponding currency (except euro) is used as the basis for the target income of the management of the portfolio of money market instruments and debt obligations of the State Oil Fund of Azerbaijan.

ABC.AZ reports that it is noted in the SOFAZ budget for the next year, approved by the country’s leader.

In particular, in the SOFAZ asset management of the debt liabilities and the portfolio of money market instruments denominated in euro, the 6-month EURIBOR interest rate is used as the target yield (Benchmark). The most common interest rates on 6-month loans among banks in the financial market can be taken as the target yield for currencies that do not have a LIBOR rate. The MSCI Stock Market Indices are used as a benchmark for the target return on portfolio of shares.

The actual weighted average investment term of the debt obligations of the Oil Fund and the portfolio of money market instruments is determined by the Fund depending on the current situation on the world market, and this period should not exceed 48 months.

By Elmir Murad

 

Вся лента