Investment Policy

The sovereign wealth funds—managed by the Central Bank since March 2007—have been exclusively invested abroad in low-risk asset classes, similar to those used in international reserves. The strategic asset allocation for both funds is made up of 66.5% in sovereign bonds, 30% in money market instruments, and 3.5% in inflation-indexed sovereign bonds. The currency composition of the funds is broken down as follows: 50% USD, 40% Euro, and 10% Japanese Yen.

Benchmarks
In order to asses the performance of the administrator of the funds, a benchmark portfolio has been set up which is composed of sovereign bonds (nominal), money market instruments, and inflation-linked sovereign bonds for several currencies.

Benchmark
Benchmark	Percentage of Total Portfolio
Money Market	30.0%
Merrill Lynch 6 Month Average	15.0%
Merrill Lynch Treasury Bills Index	15.0%
Nominal Sovereign Bonds	66.5%
Barclays Capital Global Treasury: U.S. Bond Index	31.5%
Barclays Capital Global Treasury: Germany Bond Index	28.0%
Barclays Capital Global Treasury: Japan Bond Index	7.0%
Inflation-Indexed Sovereign Bonds	3.5%
Barclays Capital Global Inflation-Linked: U.S. TIPS Index 1-10 years	3.5%
Total	100%