East Timor: JP Morgan receives custody of oil fund

4 June 2008

Dili, East Timor, 4 June – The JP Morgan bank has been chosen by the East Timor Banking Authority (ABP) to be responsible for the custody of the assets of East Timor’s Oil Fund, worth an estimated US$2.9 billion, officials said in Dili.

The Global Custody Agreement with the Australian branch of JP Morgan follows an international tender as in a statement the ABP said it was “an important step forward in operational management,” of the Oil Fund.

The bank will be responsible for receiving and organising instructions from the Funds asset managers and assessing their performance, “a necessary step to implement the government’s intention to widen the Fund’s investment mandate, in order to, in the long term, achieve higher profits,” the official said.

The ABP is the future Central Bank of East Timor and within the framework of the Oil Fund Law is the agent responsible for the operational management of the Fund. (macauhub)