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.
BREAKING DOWN '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.