East Timor to diversify application of cash in its Oil Fund

15 June 2011

Dili, Timor-Leste, 15 June – The government of East Timor plans to re-invest some of the money applied by its Oil Fund in United states treasury bonds and diversify its portfolio in order to minimise risk, according to Radio Australia.

The Oil Fund, which was worth US$5.376 billion in December 2010, has so far been applied in United States treasury bonds (90 percent) and the remaining 10 percent in other assets.

Under the terms of the revised Oil Fund Law, which was recently approved, 50 percent of the fund will have to be applied in a diverse range of assets, currencies and countries.

The secretary of state for the Council of Ministers, Ágio Pereira, said Monday that the proposal to revise the Law would be submitted to the country’s parliament for approval and added that it would make it possible to diversify the Fund’s investment portfolio, which would minimise risk and maximise revenues in the long term.

According to Pereira, who is also the government spokesman, “since 2007 management of the fund has provided good results, with 10 percent of the mandate focused on the global share market invested in over 700 companies spread across 23 countries.” (macauhub)