TODAY.AZ / Business

SOFAZ invests more in shares

24 April 2017 [12:23] - TODAY.AZ

By Azernews


By Sara Israfilbayova

The total volume of Azerbaijan’s oil fund SOFAZ investment portfolio amounted to $33.2 billion as of April 1, 2017, or 99.98 percent of total assets.

In the first quarter of 2017, 12.9 percent of the investment portfolio of SOFAZ was invested in shares, while last year this figure was 12.2 percent.

SOFAZ said that some 88 percent of the investment portfolio was invested in financial instruments for a period of up to five years, of which 39.1 percent of the fund’s investment portfolio was placed for a period of up to one year, 28.8 percent from - one to three years, 20.1 percent - from three to five years, 12 percent - more than five years, and 21.1 percent of are invested in real estate, stocks and gold.

Currently, about 3.6 percent of the investment portfolio is invested in gold, 4.6 percent – in real estate, 12.9 percent – in shares.

The geography of the SOFAZ assets allocation is as follows: 41.8 percent - in European countries, 24.2 - percent in North America, 3.5 percent - in Australia, 26.9 percent - in the Pacific Rim, 0.1 - percent in the Middle East, 0.1 percent - in South America, 3.4 percent - in international financial organizations.

SOFAZ assets increased by 0.18 percent compared to the beginning of the year, and amounted to $ 33.207 billion as of April 1, 2017.

SOFAZ was established under the Presidential Decree, dated December 29, 1999, "On Establishment of the State Oil Fund of the Republic of Azerbaijan". 

The main purpose of the establishment of the Fund was to preserve and multiply the income derived from oil, create an excellent economic base, taking into account social needs, the requirements of economic progress and development of the country.

There are several funds in the world similar to SOFAZ. Experience of those funds was used as the reference point alongside with local peculiarities and present needs when the Fund was established. A single model equally accommodating the point of accumulation of oil revenues for future generations and utilization of revenues for the solution of the problems of present generation was selected.

URL: http://www.today.az/news/business/160469.html

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