Timor-Leste Petroleum Fund - East Timor

AAA

DEFINITION of 'Timor-Leste Petroleum Fund - East Timor'

The Petroleum Fund of Timor-Leste or East Timor, a nation in Southeast Asia, was formed in August 2005 to contribute to the management of its petroleum resources for the benefit of its current and future generations. The fund is passively managed close to a defined benchmark by the Banking and Payments Authority (BPA) of Timor-Leste. The BPA commenced fund operations in September 2005 with an opening balance of $205 million transferred to it by the government.

INVESTOPEDIA EXPLAINS 'Timor-Leste Petroleum Fund - East Timor'

The Petroleum Fund's capital had grown to $5.78 billion by March 31, 2010. In 2008, the East Timor government said it was considering changing a law that requires 90% of the Petroleum Fund's assets to be invested in U.S. Treasuries, on concerns over the growing U.S. deficit and weakening U.S. dollar.

RELATED TERMS
  1. Permanent Wyoming Mineral Trust ...

    Established in 1974 by the Wyoming Legislature, the Permanent ...
  2. Endowment Fund

    An investment fund set up by an institution in which regular ...
  3. Tiger Economy

    A nickname given to the economies of Southeast Asia. Some of ...
  4. Association of Southeast Asian ...

    An organization of countries in southeast Asia set up to promote ...
  5. Sovereign Wealth Fund - SWF

    Pools of money derived from a country's reserves, which are set ...
  6. U.S. Treasury

    Created in 1798, the United States Department of the Treasury ...
Related Articles
  1. Investing Basics

    Sovereign Wealth Funds - Friend Or Foe?

    With $5.86 trillion in assets as of September 2013, SWFs have a great deal of clout in financial markets. But as the majority of SWFs are located in the Middle East and Asia, whether these largely ...
  2. Mutual Funds & ETFs

    An Introduction To Sovereign Wealth Funds

    Countries use sovereign wealth funds to stabilize their economies, but these investments can lack transparency.
  3. Investing

    How To Invest Outside Your Comfort Zone?

    Sometimes, when it comes to investing, we have to step outside of our comfort zone and use investment tools to express a market view or specific outcome.
  4. Mutual Funds & ETFs

    How To Choose The Right ETF?

    Choosing the right ETF really isn’t that complicated. If you stay focused on a few key areas, you may find the experience to be much easier.
  5. Bonds & Fixed Income

    How to Diversify with Muni Bond ETFs

    Thinking of diversifying with bonds? Consider these muni bond ETFs.
  6. Mutual Funds & ETFs

    How To Build A Bond Ladder?

    Bond laddering is a strategy used when building a portfolio: an investor can spread out interest rate risk and create a stream of cash flows for income.
  7. Fundamental Analysis

    How Investment Risk Is Quantified

    FInancial advisors and wealth management firms use a variety of tools based in Modern portfolio theory to quantify investment risk.
  8. Investing

    Rethinking About Retirement Investing?

    There are plenty of reasons to rethink your retirement investing, wherever you fall on the spectrum between fatalistic acceptance and cheerful confidence.
  9. Professionals

    Should Investors Nix Actively Managed Funds?

    Index fund returns are on a tear but does this mean investors should nix actively managed funds?
  10. Mutual Funds & ETFs

    ETF Bubble Or No Bubble?

    ETFs might be the recommendation of choice for the unimaginative financial advisor, but that doesn’t mean that the industry is in a bubble.

You May Also Like

Hot Definitions
  1. Asset Class

    A group of securities that exhibit similar characteristics, behave similarly in the marketplace, and are subject to the same ...
  2. Fiat Money

    Currency that a government has declared to be legal tender, but is not backed by a physical commodity. The value of fiat ...
  3. Interest Rate Risk

    The risk that an investment's value will change due to a change in the absolute level of interest rates, in the spread between ...
  4. Income Effect

    In the context of economic theory, the income effect is the change in an individual's or economy's income and how that change ...
  5. Price-To-Sales Ratio - PSR

    A valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the ...
  6. Hurdle Rate

    The minimum rate of return on a project or investment required by a manager or investor. In order to compensate for risk, ...
Trading Center