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About the Investment Advisory Board (IAB)The Investment Advisory Board (IAB) is established in Article 16 of the Petroleum Fund Law. The responsibilities of the IAB are:
- Preparing benchmarks for the Minister so as to assess the behaviour and return of investments made from the Petroleum Fund, as well as the adequacy of risks.
- Advising the Minister on the investment instructions to be given to the Petroleum Fund investment managers.
- dvising the Minister in what concerns the performance assessment of the external investment managers and make recommendations regarding the approval or termination of their respective contracts;
- Advising the Minister on the need for changes in the investment policy or the management of the Petroleum Fund.
As the operational manager, the Central Bank of Timor-Leste provides secretariat to the Investment Advisory Board and the Minister of Finance provides a representative to the secretariat. When the IAB gives any advice on the investment policy or the petroleum fund management, it shall take into account:
- The overall objectives of the Petroleum Fund, consisting of revenues obtained from the exploitation of non-renewable petroleum resources, to benefit current and future generations;
- The current conditions, opportunities and constraints in investment markets and the constraints under which relevant agencies in Timor-Leste operate;
- The need to ensure the adequacy of liquid assets to enable transfers to the State Budget when required.
The Minister is required to seek advice from the IAB prior making any decision on the investment strategy unless the time is insufficient given the urgency of the decision. In doing so the Minister shall immediately report the decision to the IAB and shall re-examine the decision having regard to any subsequent advice provided by the IAB.
IAB’s Investment Beliefs & Principles
The IAB has adopted investment beliefs and principles to guide its recommendations and it informs how its advice is given to maintain the objectives of the Fund. The Board has encapsulated these in a Statement of Investment Beliefs and Principles.
The beliefs and principles are used to guide the Board when developing for the minister performance benchmark of desired returns from the investments of the Petroleum Fund with appropriate risk.
IAB’s Operational Regulations
The Investment Advisory Board's activities are guided by the Board’s rules of procedure. Please click here for IAB’s Rules of Procedure.
The Investment Advisory Board consists of 5 or more members appointed by Prime Minister on the advice of Minister of Finance, at least 3 of whom possess significant experience in investment management. The Director of Treasury and a representative of the operational manager participate IAB meetings without voting right.
Current members of the IAB are;
- Olgario de Castro (Chairman)
- Mr. Gualdino da Silva, President of National Petroleum and Mineral Authority
- Mr. Michael Drew
- Mr. Torres Trovik
- Mr. Ernesto da Conceicao Silva, representing Director of Treasury, Non-voting member
- Mr. Venancio Alves Maria, representing Banco Central, Non-voting member